Case Title: Christensen v. Farmers Insurance Exchange

Citation: 21 Utah 2d 194, 443 P.2d 385

Docket Number: 

State: utah

Court: Utah Supreme Court

Date: 1968-07-05T00:00:00Z

Document:
443 P.2d 385 (1968) 21 Utah 2d 194 Clover D. CHRISTENSEN and the Western Casualty & Surety Company, Plaintiffs and Appellants, Mary V. Larsen, Individually and as Guardian ad litem of Sandra Lee Larsen, a minor, Mary Kaye Larsen and Intermountain Service, Inc., Intervenors and Appellants, v. FARMERS INSURANCE EXCHANGE, Defendant and Respondent. No. 11135. Supreme Court of Utah. July 5, 1968. Strong & Hanni, Glenn C. Hanni, Worsley, Snow & Christensen, Raymond M. Berry, Salt Lake City, for appellants. W. Brent Wilcox, Salt Lake City, for respondent. ELLETT, Justice: Dr. Vernon L. Stevenson carried insurance on his automobile with respondent, *386 hereinafter called Farmers. The pertinent provisions of the policy are as follows: The word "used" and the phrase "being used in" are not defined in the policy. Dr. Stevenson requested Clover D. Christensen to install some new tie-rod ends on the automobile and to balance the wheels. The tie-rod ends were installed, but Christensen could not balance the wheels because his machine was out of order. He made arrangements by phone to have the wheels balanced by another concern, and while driving the car from his place of business to the one where the work was to be performed he was involved in an accident in which intervenors' decedent lost his life. Farmers denied coverage under the exclusion provision of the policy, claiming that at the time of the accident the car was being "used in the automobile business" of Christensen. The trial court granted summary judgment to Farmers and denied plaintiffs' motion for summary judgment, and this appeal is from those rulings. The provisions of this policy are of rather recent origin. Formerly, the insurance policies contained a provision excluding from coverage "any person, etc., operating an automobile repair shop, public garage, sales agency, service station or public parking place." Coverage was excluded without any consideration as to whether or not the automobile at the time of an accident was in fact being used in the automobile business. The cases decided under the old policy provisions will not afford much assistance in the instant case, for here we must determine the meaning to be given to the phrase "being used in" the automobile business, and this phrase was not included in the older policies. In interpreting an insurance policy, courts have uniformly resolved ambiguities, if any there be, in a policy strictly against the insurer and in favor of the insured. Browning v. Equitable Life Assurance Society of United States, 94 Utah 532, 72 P.2d 1060; Jorgensen v. Hartford Fire Insurance Company, 13 Utah 2d 303, 373 P.2d 580. The Utah Supreme Court had an occasion to contemplate the problem here posed in the case of National Farmers Union Property and Casualty Co. v. Farmers Insurance Group, 14 Utah 2d 89, 377 P.2d 786 (1963). There, a customer of a garage borrowed a privately owned car from a salesman to be used during the time his own car was being repaired and thereafter was involved in a collision. It was claimed that the coverage was excluded by reason of the automobile's being used in the automobile business. The lower court had found that the car was not being used in the automobile business, and this court refused to overturn that finding, saying, "The cases cited to this court which seem to be in point support this finding. These cases look at the use of the car from the standpoint of the driver." *387 It is believed that the first case in the Nation to construe the language in policies like the one now before us is McCree v. Jenning, 55 Wash. 2d 725, 349 P.2d 1071 (1960). In that case Miller had repaired the insured's automobile. It needed gas in order to be delivered back to the owner. Miller's guest was driving the car to the gas station when it was involved in an accident. Judgment was against the insured, and in garnishment proceedings the insurer denied liability under a policy similar to the one involved in the instant case. The Washington Supreme Court at page 1072 said: This case was followed and approved in 1965 in the case of Northwestern Mutual Insurance Co. v. Great American Insurance Co., 66 Wash. 2d 762, 404 P.2d 995. Many other jurisdictions have followed the holding of the McCree case, a few of which are hereinafter referred to. In 1964 the New Hampshire Supreme Court was called upon to decide whether coverage was excluded in Case v. Fidelity and Casualty Company of New York, 105 N.H. 422, 201 A.2d 897. There, a mechanic was recharging a battery so a customer's car could be started. After the battery was recharged, the mechanic undertook to start the automobile, and in doing so he ran into the customer. The court action was one for declaratory judgment to determine if coverage was excluded on the basis that the car at the time was being used in the automobile business. At page 900 the court said: In Capece v. Allstate Insurance Company, 86 N.J. Super. 462, 207 A.2d 207 (1965), Capece owned and operated a service station and garage. One of his customers brought in a car to be serviced and repaired. While the agent of Capece was driving the car onto the lift, his foot slipped from the brake onto the gas pedal, and Capece was injured. The trial court had found that the agent, Giordano, had permission to be driving the car at the time of the accident. The question was raised as to whether the insurance coverage was excluded because the car was being used in the automobile business. The court at page 214 said: The case of Trolio v. McLendon, 9 Ohio St.2d 103, 224 N.E.2d 117, was decided by the Ohio Supreme Court in 1967. That was a case where a repairman had a collision while road testing a customer's automobile after he had repaired it. The question on appeal was whether the policy of insurance excluded coverage because the car was being used in the automobile business. The court at page 119 held: Malkerson Motors, Inc. v. St. Paul Fire and Marine Insurance Company, 269 Minn. 563, 132 N.W.2d 174 (1964), was a case where the owner left his car at a garage for repairs. While an employee of the garage was moving the car from where the customer had parked it into the garage, he was involved in an accident. The insurance company denied coverage under a policy like the one in the instant case. The court at page 179 disposed of the claim of exclusion in the following words: The case of Goforth v. Allstate Insurance Company, 327 F.2d 637 (Fourth Circuit 1964), was decided by a per curiam decision as follows: We are of the opinion that the court was in error in granting a summary judgment to the respondent in this case. While ordinarily the denial of a motion for summary judgment is not appealable because it is not a final judgment, nevertheless when there are no issues of fact to be determined and the only dispute involves a question of law, we think this court has the duty and the power when a matter is before us to direct the lower court to enter a judgment according to the law of the case. Here the trial court ruled against the appellants and gave summary judgment to the respondent. When a party moves for summary judgment, we think the court can give a judgment against him as well as for him when under the law such a ruling is required. See Carpineta v. Shields, 70 So. 2d 573 (Fla. 1954), and cases cited therein. While there is a division in the authorities (see 48 A.L.R.2d 1188), we think the better procedure is for the court to grant the appropriate relief when there is no unresolved issue of any material fact to be determined. In the instant case all parties filed motions for summary judgment. This places the losing party in a more favorable position to have the court on appeal rule for him than if he had not filed a motion. The appellants could not bring before this court on appeal the denial of their motions for summary judgment if that be all that was involved. However, in the case of Foster v. Steed, 19 Utah 2d 435, 432 P.2d 60 (1967), we permitted an interlocutory appeal to be taken by one whose motion for summary judgment was erroneously denied. In that case we reversed the trial court's denial of summary judgment to the defendant and remanded the case. Another problem confronting the court below was plaintiff's claim that the insurance carried by the defendant would be the primary insurance, while that of the non-owner driving the car would be secondary. We agree with this contention. See National Farmers Union Property and Casualty Co. v. Farmers Insurance Group, supra. We, therefore, remand this case to the trial court with directions to set aside the summary judgment granted to respondent and to enter a summary judgment in favor of the appellants declaring that defendant's policy affords coverage to the automobile driven by Christensen and that such coverage is primary and the coverage of Western Casualty & Surety Company is secondary. Costs are awarded to appellants. CROCKETT, C.J., and CALLISTER and TUCKETT, JJ., concur. HENRIOD, J., concurs in the result.