Mission National Insurance Company v. Duke Transportation Company
United States Court of Appeals for the Fifth Circuit
792 F.2d 550 (1986)
Duke Transportation Company (Duke) (defendant) purchased a primary-liability insurance policy from Northwest Insurance Company (Northwest) that covered Duke for damages up to $300,000. Duke also purchased an excess-liability policy from Mission National Insurance Company (Mission) (plaintiff) for damages up to $5 million. Duke’s policy with Mission covered occurrences greater than $300,000 if the occurrences were covered by Northwest and provided for an ultimate net loss of $10,000 for occurrences that were not covered by Northwest. If the aggregate limits of liability under the Northwest policy were exhausted, then Mission would continue as underlying insurance. Duke’s policy with Mission also covered claims that were covered under the Mission policy but were not covered under the Northwest policy. Northwest became insolvent. Duke requested that Mission defend Duke in actions filed against Duke while Duke was covered by Northwest. Mission refused. Duke sued Mission in state court seeking court intervention to require that Mission defend Duke. Mission removed the case to federal court and filed a declaratory-judgment action seeking a judicial determination that Mission was not required to provide primary-insurance coverage to Duke. The trial court consolidated the actions. Duke and Mission each cross-moved for summary judgment. The trial court granted Mission’s motion for summary judgment holding that, under Duke’s policy with Mission, Mission was only required to cover losses greater than $300,000 and to defend lawsuits that were not covered by Northwest. Since these lawsuits were filed while Duke was covered by Northwest and, therefore, should have been covered by Northwest, the court held that Mission was not responsible for defending these lawsuits. Duke appealed.
Rule of Law
Holding and Reasoning (Hill, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 175,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.