Pertinent Case Law
Carolina Casualty Ins. Co. v. Yeates
There are dozens, if not hundreds, of cases that construe the MCS-90. Its evolution and interpretation has been torturous. In a significant late 2009 decision, the Tenth Circuit in Carolina Casualty Ins. Co. v. Yeates held that the MCS-90 did not “stack” on top of other coverage that a motor carrier had in place which met the minimum required level of financial responsibility set forth in § 387.9. 584 F.3d 868 (10th Cir. 2009). There, a motorist suffered a significant and permanently-disabling injury in a collision with a truck owned by Bingham Livestock. The truck was specifically covered by a State Farm policy with the minimum $750,000 limits allowed under the regulations. State Farm quickly settled for its policy limits. Bingham Livestock then sought coverage under a general liability policy it held from Carolina Casualty. That policy insured a number of vehicles owned by Bingham, but significantly, it did not extend to the truck involved in the collision.