Progressive Casualty Insurance Company v. Hoover

� 1 Progressive Casualty Insurance Company (Progressive) appeals from the November 12, 1999 Order granting summary declaratory judgment to Blanche and James Hoover (Hoovers) finding Progressive is obligated to pay any final judgment up to a million dollars recovered by the Hoovers in their personal injury suit against Progressive’s insured, Marbec Trucking Company (Marbec). For the reasons that follow, we affirm.

� 2 The Hoovers initiated a civil action in Allegheny County Court of Common Pleas seeking damages for serious personal injuries sustained by Mrs. Hoover on November 15, 1995 after the Hoover vehicle was struck by a tractor trailer which was driven by Loren J. Druist. At the time of this collision, the tractor-trailer was owned by Wayne S. Hursh and leased to Marbec.*fn1 It is undisputed at the time of the accident Marbec was a certified motor carrier operating under a valid Interstate Commerce Commission (ICC) certificate. Pursuant to federal requirements, Marbec purchased sufficient commercial insurance from Progressive to obtain a certificate to permit it to operate in interstate commerce. 49 U.S.C.A. �10927(a)(4). Marbec’s policy from Progressive included an MCS-90 Endorsement. The trial court noted the MCS-90 Endorsement provided that, in consideration for the premium, Progressive “would pay any final judgment rendered against the insured for public liability resulting from the negligence in the operation, maintenance or use of motor vehicles…Regardless of whether the particular motor vehicle is specifically described in the policy or whether or not such negligence occurs on any route or in any territory authorized to be served by the insured or elsewhere.” Trial Court Opinion, 2/16/00, at 2. (citing Insurance Policy attached to Plaintiffs’ Memorandum of Law in Support of Motion for Summary Judgment).

� 3 Once the Hoovers filed their personal injury suit, Progressive filed a Complaint for Declaratory Judgment seeking a determination of its liability under the policy it issued Marbec. In effect, Progressive sought to avoid coverage arguing the MCS-90 Endorsement was inapplicable and they were not obligated to indemnify any of the Defendants in the personal injury action for two reasons. First, Progressive argued to the trial court, since neither the Hursh tractor-trailer nor its driver [Loren Druist] were ever added to the Marbec policy, they were not insured under it. In addition, and key to the issue before us now, Progressive asserted since the transportation involved in the civil action was wholly intrastate, and not interstate, the MCS-90 endorsement was inapplicable. Progressive’s Motion for Summary Judgment was denied on June 15, 1999.