State, Department & Public Facilities v. Houston Casualty Co.

OPINION

RABINO WITZ, Justice.

I. INTRODUCTION.

On February 7, 1985 a Ryan Air, Inc. (“Ryan”) aircraft struck and killed Clarence Douglas as he drove his snow machine across a closed portion of the Koyuk Airport runway. The Douglas estate subsequently brought a wrongful death action against Ryan. Ryan’s insurer, the Houston Casualty Company (“Houston”), then obtained a release for Ryan by settling with the Douglas estate for $800,000, three-quarters of which was termed a “loan.” The settlement obliged the estate to file a wrongful death action against the State Department of Transportation and…