Jenkins v. Indemnity Insurance Co. of North America

In 1958, Rouget Jenkins (plaintiff) drove his car into several concrete abutments in Connecticut, injuring his passenger and wife, Patricia. Indemnity Insurance Company of North America (defendant), a Pennsylvania company, insured the car. Rouget’s New York–issued policy covered bodily injuries sustained by any person. On its face, the policy covered Patricia’s injuries. The day after the accident, the insurer’s agents informed it of the accident, Patricia’s injuries, and that she was a claimant under the policy. Within a month, Patricia’s attorney informed the insurer about legal questions related to interspousal claims under a New York–issued policy if the accident occurred elsewhere. New York insurance law § 167(3) provided that a spouse’s injuries are not within the coverage of a car insurance policy unless expressly provided. Still, on September 18, 1958, the insurer wrote to Patricia’s attorney that it agreed to pay within the limits of the policy and subject to its provisions any final judgment arising out of the accident. Through October 27, 1958, the insurer attempted to adjust Patricia’s claim, but on that date, it first learned of the seriousness of her injuries and medical bills. In a November 12, 1958 letter to Patricia’s attorney, the insurer disclaimed coverage and stated it was not waiving § 167(3). Patricia sued Rouget in Connecticut and won a $25,000 judgment. Rouget then filed a declaratory-judgment action seeking (1) a declaration that the policy covered Patricia’s claim; (2) injunctive relief ordering Patricia’s judgment paid; and (3) money damages to cover the costs of defending himself in Patricia’s lawsuit. The trial court found in favor of the insurer because the New York statute was made a part of the policy, excluding Patricia’s claim. The trial court found the insurer did not waive its rights because it did not have certain knowledge of its rights under New York insurance law. Rouget appealed.