Please allow this correspondence to provide you with our initial coverage analysis concerning this claim. The Progressive Casualty Insurance Company (“Progressive”) has requested our legal analysis, and has specifically asked whether it has a duty to defend Tristate Trucking, LLC (“Tristate” or the “insured”) in litigation filed in the Superior Court of New Jersey Law Division Monmouth County, No. MON-L-3550-16 (the “lawsuit”). Additionally, Progressive has inquired as to whether it will have a duty to indemnify Tristate, Mylesa Walton, Michael Peavy, or Nazir Peavy (collectively the “Plaintiffs”) in the event that the Plaintiffs obtain a final judgment with respect to the “lawsuit. Progressive’s potential obligations arise out of the insured’s …show more content…
It is, however, our opinion that Progressive will be liable to the Plaintiffs in the lawsuit if they are successful in obtaining a judgment against the insured. If the Plaintiffs are successful in obtaining a judgment against Tristate, Progressive may seek indemnification from the insured for any such liability. While Progressive’s right to indemnification may reduce the risk that the insured will pursue his defense less than zealously, Progressive may elect to intervene in the New Jersey litigation, or to offer a defense to Tristate in order to protect its interests.

I. Facts of Loss

On August 19, 2016, at approximately 2:02 a.m., the Plaintiffs occupied a 2008 Ford F150 pickup truck that was traveling northwest on DE 896. The F150 then stopped at a red light at the interception of DE 896 and US 40. Footage obtained from cameras at the intersection shows that the F150 was clearly stopped at a red light with its brake lights illuminated.

Thereafter, a blue 2010 Freightliner Tractor bearing VIN number 1FUJGLDR6ALAP6988 towing a 2009 Great Dane Trailer approached the F150 from the rear. The 2010 Freightliner was operated by an agent of Tristate—Charles Bolton. Mr. Bolton. Mr. Bolton was dispatched from Columbia, Maryland, just after midnight, and was destoned to deliver his cargo in Newark, Delaware. The bill of lading shows that Bolton was transporting …show more content…
The front seat passenger in the F150 suffered right forearm pain, and left thigh pain. A six-year-old minor in the back seat of the F150 sustained second degree burns to 26% of his body.

Later on the same morning of the occurrence James Leighty, a representative of Tristate, called Progressive and asked to pay his insurance (the insured was in pending cancelation status at the time), and to add another vehicle to his insurance. Mr. Leighty articulated that he wanted to add a 2010 Freightliner Cascadia bearing VIN number 1FUJGLDR6ALAP6988 onto his policy. Thereafter, on August, 24, 2016, Mr. Leighty made a claim on his insurance policy for the occurrence involving his Blue 2010 Freightliner that occurred just hours before he added that vehicle to his policy. Progressive’s investigation revealed that Tristate had owned the 2010 Freightliner for two years prior to the date of the