T.H.E. Insurance Co. v. Larsen Intermodal Services

T.H.E. Insurance Company ("T.H.E.") appeals the ruling of the district court granting summary judgment in favor of its insured, Larsen Intermodal Services, Inc. ("Larsen") and denying T.H.E.s cross-motion for summary judgment. T.H.E. defended Larsen against the claims of several plaintiffs who were injured in an accident involving a 1984 White tractor leased to Larsen and driven by one of its employees. However, T.H.E. determined that the tractor was not a covered vehicle under the Commercial Truckers Insurance policy (the "Policy") that T.H.E. provided to Larsen. Nevertheless, T.H.E. settled and paid the injured plaintiffs claims as required by a federally-mandated endorsement to the Policy. The endorsement gives T.H.E. the right to seek reimbursement from Larsen for any sums paid solely by reason of the endorsement. The district court concluded, however, that T.H.E. had waived its right to seek reimbursement. It also denied T.H.E.s claim for defense costs. Because we hold that T.H.E. did not waive its rights to reimbursement of the settlement amounts, we REVERSE and RENDER summary judgment for T.H.E. on that issue. However, we conclude that T.H.E. had a duty to defend Larsen, and we therefore AFFIRM the district courts ruling insofar as it determined that T.H.E. is not entitled to recover its defense costs.