American Surety Co. v. Campbell

HOLMES, Circuit Judge.

Vaughan Sutherland, who held a policy of automobile liability insurance issued to him by the American Surety Company, was killed when his car overturned. Five suits demanding damages for injuries sustained in the accident were filed against his administrator in a state court of Georgia. The suits were not defended by the surety company, and judgments totalling $10,000 were obtained by the plaintiffs on May 24, 1939.

The insurer then sought a declaratory judgment in the federal district court, asserting its non-liability on the ground that the insured had breached the…