Insurer Must Pay $5 Million Toward Trolley Crash Consent Judgments, Del. Judge Rules

WILMINGTON, Del. — A Delaware judge has ordered Philadelphia Indemnity Insurance Co. to pay $5 million toward consent judgments arising from a 2016 trolley crash, ruling that coverage under the policy’s federal motor carrier endorsement was triggered.

In a Dec. 6 order, Judge Jeffrey Clark of the Delaware Superior Court found the insureds did not consent to the judgements fraudulently, collusively, or in bad faith; therefore, they are enforceable against PIIC.

In 2016, a trailer marketed as the “Jolly Trolley” flipped south of Dewey Beach, Del., while transporting 31 passengers to a wedding reception, injuring several individuals.

PIIC insured …