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All Around Transport Inc. v. Continental Western Insurance Co12/12/1996
bound by an insured's breaches. See 12A G. Couch, Cyclopedia of Insurance Law, supra, ยง 45.790 at 445-447.
We presume, therefore, that the language used by the court in the Farmers Insurance Exchange opinion was a simple recognition that, once the injured party becomes a judgment creditor, that party has standing to prosecute garnishment proceedings against the insurer and to litigate any policy issues that may arise during the course of those proceedings. We do not construe that language as conferring standing upon an injured claimant with a judgment to commence a direct contract action as a third-party beneficiary on the liability policy itself, absent an explicit policy or statutory provision allowing such an action. See Safeco Insurance Co. v. Gonacha, supra.
Given this consideration, then, we reject the shipper's claim that it was entitled to a judgment on the policy in these proceedings.
The portion of the judgment dismissing the broker's claim is affirmed; the judgment in favor of plaintiff is reversed.
JUDGE METZGER and JUSTICE ERICKSON concur.
Disposition
JUDGMENT AFFIRMED IN PART AND REVERSED IN PART
Judges Footnotes
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