Privilege Underwriters Reciprocal Exchange v. Peter Grayson

Summary

The court held that the insurer's declaratory-judgment action presented a bona fide justiciable controversy when filed because the complaint alleged a concrete dispute over whether Grayson was an insured under the policy. The trial court therefore had subject-matter jurisdiction to decide coverage before Grayson established damages exceeding the payment from his personal uninsured-motorist carrier, and the resulting judgment was not void. Justice Murdock, concurring specially, would not have approved bifurcating the insurer's coverage claim from Grayson's compulsory counterclaim for damages because the claims were inseparable mirror images.