Justice Alexander W. Hunter
A declaratory judgment action brought by plaintiff excess insurer against defendant primary insurer alleged defendant breached its duty of good faith and fair dealing by refusing to implead a potentially responsible third party into the underlying personal injury/wrongful death actions. Plaintiffs sought to intervene, asserting they were unrepresented or inadequately represented and may be bound by the judgment. If the proposed intervenors were part of the action, they would object to plaintiff’s application to be relieved of its obligation to pay them that would severely prejudice them through no fault of their own. Additionally, the proposed intervenors argued that if plaintiff’s request that the underlying actions be stayed is granted, they would be prejudiced as their action would be delayed interminably. The court granted the motion, finding proposed intervenors had shown their interests would not be adequately represented if they were not permitted to intervene. The court noted if plaintiff obtained a declaratory judgment, it could have a res judicata effect on the injured plaintiffs’ attempts to collect excess amounts over defendant’s policy limits.
