First National Bank v. Malady

This declaratory judgment proceeding was initiated by plaintiff Truck Insurance Exchange to test the coverage of a liability insurance policy it had issued to plaintiff Sites Freight Lines, Inc., and to the individually named plaintiffs Herman Sites, now deceased, and his wife Pauline. Herman was the principal owner of the Sites Freight Lines, Inc. The question presented relates to the omnibus clause of the policy.

*355A car specifically listed in the policy was involved in an accident at a time when the car was being operated by persons who were not named as insureds. The complaint sought a…