New Mexico: Insurance Policy Limits for Motor Carriers

SUMMARY OF AMICUS BRIEF FILED 8/5/2014

TIDA filed an amicus brief in the New Mexico Supreme Court in support of TIDA member Northland Insurance Company (a Travelers company). Northland is seeking to overturn a decision of the New Mexico Court of Appeal, entitled Lucero v. Northland Ins. Co., 2014 NMCA-055, No. 32,426.  This is an insurance coverage case involving tractor trailer coverage. TIDA member Paul T. Yarbrough of Butt Thornton & Baehr, PC in Albuquerque, New Mexico filed the motion and brief on behalf of TIDA, the American Trucking Association and the New Mexico Trucking Association. The New Mexico Supreme Court granted the motion for the filing of the brief on Aug. 6, 2014. By way of background, Northland issued commercial auto coverage for insured Hamilton Trucking and its vehicles, with policy limits of $1.0 mil. each accident. Coverage was for Hamilton’s tractors and trailers. Hamilton driver allegedly caused a bad wreck in the tractor trailer. Mr. Lucero was seriously injured and filed a tort action. In the instant related declaratory judgment action, Mr. Lucero argues there is $2.0 mil. in coverage because the tractor and trailer were both involved in the accident, the tractor has coverage for $1.0 mil. and the trailer has coverage for $1.0 mil. Northland argues the limit of liability clause limits liability to $1.0 mil. The trial court granted summary judgment for Northland. New Mexico Court of Appeals reversed and sided with Mr. Lucero. The TIDA Amicus Brief Committee decided that TIDA should support this cause because the trucking industry does not need or want bad law expanding insurance coverage policy limits for tractor trailers. TIDA thanks Paul Yarbrough for leading this amicus brief effort on behalf of TIDA.  

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