Municipal Corporations – Waiver of Immunity to Suit by Purchase of Liability Insurance

The City of Knoxville owned and operated a municipal airport under authority of a state statute which permitted a municipality to acquire, maintain, and operate a municipal airport in its governmental capacity, and which barred suits against the municipality with respect to its operation of the airport. The city carried a policy of liability insurance covering it in the ownership and operation of the airport. Plaintiff was injured by a fall at the airport terminal building, and instituted a negligence action against the city. The city moved for dismissal, relying upon the immunity given it by the statute. Held, motion to dismiss overruled. The city waived its immunity to suit to the extent of the insurance carried by it at the time of the accident. Bailey v. City of Knoxville, (D.C. Tenn. 1953) 113 F. Supp. 3.