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Home / Courts / Insurance – Auto – Bus for Hire – Insufficient Coverage – Civil Practice – Res Judicata (access required)

Insurance – Auto – Bus for Hire – Insufficient Coverage – Civil Practice – Res Judicata (access required)

Armwood v. North Carolina Farm Bureau Mutual Insurance Co. The minor plaintiff was injured due to the negligence of the driver of a bus, which did not have the minimum $5 million in “financial responsibility” required by the Federal Motor Carrier Safety Act. This lawsuit seeks amendment of the liability amount for which the defendant-insurer would be responsible. Contrary to plaintiffs’ argument, they were not required to wait until they had a judgment before they filed a claim under the Act; in fact, the judgment in the underlying state-court action between plaintiffs and the bus’s insurer bars plaintiffs’ claim under the Act.

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