from the Allen Superior Court The Honorable Craig J. Bobay,
Judge Trial Court Cause No. 02D02-1503-CT-121
ATTORNEYS FOR APPELLANT Siobhan M. Murphy Lewis Brisbois
Bisgaard & Smith LLP Scott B. Cockrum Lewis Brisbois
Bisgaard & Smith LLP
ATTORNEYS FOR APPELLEE DARNELL WRIGHT David A. Singleton Chad
The issue before us is whether an insurance company, which
has been relieved of all responsibility under its liability
policy through judicial declaration, has an adequate interest
in the underlying liability-related lawsuit to warrant
participation in said lawsuit for the purpose of attempting
to limit its potential future liability stemming from the
same events under an MCS-90 Endorsement. Because the
insurance company's remaining interest in the lawsuit is
contingent, rather than cognizable, we conclude that it does
and Procedural History 
[¶2] On November 12, 2013, Darnell Wright was injured in
a collision with a vehicle driven by Decardo Humphrey. At the
time of the collision, Humphrey was acting as an agent for/in
the scope of his employment with Ali Faruq, Riteway Trucking,
Inc. ("Riteway"), Riteway Transportation, Inc.
("RTI"), and Prudential Trucking, Inc.
("PTI"). On March 27, 2015, Wright filed suit
against Humphrey, Faruq, Riteway, RTI, and PTI (collectively,
"Defendants"). For whatever reason, Riteway would
not cooperate with its insurance provider, Prime Insurance
Co. ("Prime"), and failed to appear or present any
defense in a subsequent lawsuit brought against it by Wright.
On or about May 1, 2015, Prime filed an action in the
Northern District of Indiana seeking a declaration that it
had no duty to defend Riteway or any other defendant in
Wright's state-court action. Meanwhile, back in the trial
court, on June 17, 2015, Wright filed a motion for a default
judgment. In July of 2015, Prime sought and was granted
permission to intervene in Wright's state-court action.
The trial court conducted a hearing on Wright's motion
for a default judgment on August 19, 2015. Defendants and
Prime failed to appear, despite each having notice of the
hearing. The next day, on August 20, 2015, the
trial court entered default judgment against Faruq, Riteway,
RTI, and PTI, finding that they were in default. The trial
court did not enter default judgment against Prime. The trial
court entered judgment in favor of Wright for $400, 000.
Prime filed an answer and affirmative defenses on August 21,
2015, and a motion to obtain discovery from Wright on
November 4, 2015. Wright objected to Prime's discovery
requests on the grounds that judgment had already been
entered against Riteway on liability and damages. In response
to Wright's objection, on January 4, 2016, Prime filed
motions to set aside the default judgment and to obtain
discovery. The trial court denied Prime's motion to
obtain discovery and stayed the case until Prime's
federal action was resolved.
After its attempts to obtain discovery from Wright in the
state-court action were rejected, Prime requested permission
to issue discovery requests to Wright regarding the issues of
liability and damages in the federal-court action. The
federal court denied Prime's request, noting that the
information sought was irrelevant to the pending request for
a declaratory judgment. The federal court stated that it
would not permit Prime "to subvert limitations on
discovery in another proceeding, by attempting to obtain
discovery in [the federal] case that has already been denied
in the underlying Allen Superior Court action."
Appellee's App. Vol. II p. 76 (internal quotation
omitted). On January 29, 2018, the federal court ordered that
Prime did not owe a duty to defend or indemnify Riteway, that
Riteway had failed to meet its obligations under its
insurance policy, and that Riteway and its "alter
egos" shall be liable to Prime for any payments made
under an MCS-90 Endorsement to the insurance policy.
Appellee's App. Vol. II p. 58.
Following resolution of the federal-court action, the trial
court held a hearing on Prime's motion to set aside the
default judgment. On October 25, 2018, the trial court issued
an order denying ...