United States v. Government Employees Insurance Company, Inc.

On October 19, 1971, an employee of the United States Postal Service, driving his automobile on government business, negligently collided with another vehicle. Thereafter, judgment was entered against the United States under the Federal Tort Claims Act, 28 U.S.C. § 2674, for property damage to the vehicle that was struck. The United States sought indemnification from Government Employees Insurance Company, Inc., which was the insurance carrier for the negligent employee. Upon that company’s denial of the government’s claim, suit followed in the United States District Court for the Western…