# FILED March 6, 1996 Cecil Crowson, Jr. App ellate C ou rt Clerk I N TH E C O U R T O FA PPEA LSO FTEN N ESSEE EA STER N SEC TI O N

GEI CO GENER

ALI NSUR

ANC E ) C

/ A N O . 03A 01- 9511- C

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- 00408 COM PANY, ) ) ANDER

S ON C HANC ER Y Pl a i ntif f

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p p e lle e , )

) HON. W

I LLI AM E. LANTR

I P, v. ) C HANC ELLOR ) DUSTI DAW

N HOW AR D, PATHOW

AR D ) a n dwi f e PENNE

HOW AR D, R AY ) GABR I ELLECOX, a n dJ OHN P. ) HOW AR D a n dwi f e M

AR I A S . ) HOW AR D, ) VAC ATED ) AND D e f e nda nt s - A

ppe l l a nt s . ) R EM ANDED

______________________________________ THEFAR

M ER SAUTOM

OBI LE ) C / A N O . 03A 01- 9511- C

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- 00407 I NSUR ANC EAS S OC

I ATI ON, AN ) I LLI NOI SCOR

POR ATI ON, )

) Pl a i ntif f

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p p e lle e , )

) v. ) ) DUSTI DAW

N HOW AR D, PATHOW

AR D ) a n dwi f e , PENNE

HOW AR D, R AY ) GABR I ELLECOX, a n dJ OHN P. ) HOW AR D a n dwi f e , M

AR I A S . ) HOW AR D, ) VAC ATED ) AND D e f e nda nt s - A

ppe l l a nt s . ) R EM ANDED

J . W I LLI AM COLEY, HODGESDOUGHTY & C AR S ON, Kn o x v i l l e , f o r Pl a i nt i f f

- A

ppe l l e e , G

EI CO G e ne r a l I ns ur a nc e C om pa ny of A m e r i ca. R O G ER L. R I D EN O U R , C l i nt on , f o r D

e f e n d a nt - A

p p e l l a nt, R

a y G a b r i e lle C

o x . W . C LAR K M ER EDI TH, J OYC

E, M ER EDI TH, FLI TC

R OFT& NOR M AND, Oa k R i dge , f or D

e f e nda nt s - A

ppe l l a nt s , D

us t i D a w n H ow a r d, Pa t H ow a r d, a nd Pe nne H

ow a r d.2

R O BER T M . C H EM ER Sa n dJ O

H N M . M c G R EG O R , PR ETZEL &

STO U FFER , C H A R TER ED , C hi c a g o , I l l i no i s , a n d R OC KFOR DED. KI NG, EGER

TON, M c AFEE, AR

M I STEAD &

DAVI S , K n o x v ille , for Pl a i ntif f

- A p p e lle e , Th e Fa r m e r s A u t o m o b ile I ns ur a nc e A

s s oc i a t i on.

O

PI N I O N

Fr a nks . J .

Th e s e decl a r a t o r yj u d g m e nt act i o n s ar o s e as a r e s u l t o f a s i n g l e car acci d e nt .

G EI CO G e neral I n s u r a nc e C o m p a nyo f A

m eri c a( " G

EI CO " ) ha d i s s ue d a f a m

i l y a ut om

obi l e i ns ur a nc e pol i c y t o Er ne s t P. H ow a r d, a nd t he Fa r m e r s A ut om obi l e I ns ur a nc e C om pa ny A s s o c i a t i o n( " Fa r m e r s " ) h a di s s u e da p o l i c yo f i n s ur a n ce t o J ohn P. H

ow a r d. Bot h pol i c i e s w e r e i n f or c e a t t he t i m e of t h e acci d e nt .

The i ns ur a nc e c om pa ni e s s ought a de c l a r a t i on t ha t ne i t he r pol i c y pr ovi de d c ove r a ge t o D us t i D a w n H ow a r d f or t he a c c i de nt . The Tr i a l C our t de t e r m

i ne d t he r e w

e r e no di s put e d i s s ue s of m

a t e r i a l f a c t a nd gr a nt e d bot h i ns ur a nc e c om pa ni e s s um m a r y j udgm

e nt , on t he ba s i s t ha t D us t i , da ught e r of Er ne s t P. a nd Pe nne H

ow a r d, ha d not be e n gi ve n pe r m i s s i on t o ope r a t e1 Th i s accou n t i s di spu t e d b y M a r i a . 3 t he 1992 For d A

e r os t a r . The undi s put e d f a c t s a r e t ha t on A ugus t 16, 1993, D us t i w a s dr i vi ng t he 1992 For d A e r os t a r ow

ne d by he r A

unt a nd U nc l e , J ohn P. a nd M a r i a S . H

ow a r d, w he n s he w

a s i nvol ve d i n a s i ngl e m

ot or ve hi c l e a c c i de nt . J ohn a nd M a r i a w e r e vi s i t i ng t he Er ne s t H

ow a r ds ( hi s br ot he r ) i n Te nne s s e e , a t t he t i m e of t he a c c i de nt . J ohn a nd M a r i a a nd Er ne s t a nd hi s w i f e Pe nne ha d gone t o G

a t l i nbur g, Te nne s s e e on a n out i ng t ha t a f t e r noon, a nd J ohn l e f t hi s ve hi c l e a t Er ne s t ' s hom e , a l ong w

i t h t he i r t w o s m a l l c hi l dr e n, w

he r e D us t i w a s r e s pons i bl e f or t he c a r e of t he c hi l dr e n.

O n t he m

or ni ng of A

ugus t 16, D

us t i ha d a c c om

pa ni e d M a r i a t o a s hoppi ng m a l l w i t h M a r i a ope r a t i ng t he va n. A s t o t hi s tr i p , D

u s ti te s tif i e dthu s : Q. D us t i , di d you ha ve a c onve r s a t i on w i t h your A unt M a r i a on t he oc c a s i on of goi ng t o t he m a l l t ha t da y? A. Ye s . Q. A nd w oul d you t e l l us w ha t t ha t c onve r s a t i on w a s r e ga r di ng t he ve hi c l e you w e r e i n? A. Sh e t o l d- - s h e as ke dm e - - w e w e r e at M c D ona l d' s a nd w

e w e r e goi ng t o be on our w a y ba c k hom

e , s he a s ke d m

e i f I ' d l i ke t o dr i ve t he va n. 1 Q. A nd w ha t w a s your r e s pons e a t t ha t t i m e ? A. I t ol d he r t ha t , no, I di d not . Q. A nd ha d your pa r e nt s a t a ny t i m e or your a unt a nd unc l e put a ny r e s t r i c t i ons on you a t a ny t i m e t h a t y o u ' r e aw

a r e o f i nt h e g e n e r a l u s e o f v e hi c l e s ?4 A. No . D u s ti, in h e r a f f i d a v it, fur t h e r e xp l a i n e d : La t e r t ha t da y, m y pa r e nt s , a unt a nd unc l e de c i de d t o s pe nd t he r e m a i nde r of t he da y i n G a tlinb ur g . It w

a s a l s od e t e r m

i n e dth a t I w

a s to ba bys i t m

y younge r c ous i ns w hi l e t he y w

e r e gone . N

o di s c us s i ons c onc e r ni ng w ha t t he c hi l dr e n a nd I c oul d or c oul d not do oc c ur r e d. I w a s not t ol d w

ha t t i m

e t he y w oul d r e t ur n hom

e . A s m y pa r e nt s , a unt a nd unc l e w e r e l e a vi ng, m

y unc l e t os s e d t he ke ys t o hi s va n t o m e , a s ki ng t ha t I c l os e t he w

i ndow s i f r a i n be ga n. N o ot he r i ns t r uc t i ons c onc e r ni ng t he va n w e r e gi ve n. I b e lie v e da t th a t tim e a n dla t e r , I ha dp e r m i s s i o nto dr i ve t he va n. The Fa r m

e r s pol i c y i ns ur i ng J ohn H ow a r d' s va n, c ont a i ns t he f ol l ow i ng e xc l us i on: ( a ) W e do not pr ovi de l i a bi l i t y c ove r a ge f or a ny p e r s o n : . . . ( b ) U s i ng a ve hi c l e w

i t hout a r e a s ona bl e be l i e f t ha t t ha t pe r s on i s e nt i t l e d t o do s o. The G EI CO pol i c y i s s ue d t o Er ne s t w i t h r e ga r d t o a non- ow ne d ve hi c l e pr ovi de s c ove r a ge t o: Y ou a nd your r e l a t i ve s w he n us i ng a pr i va t e pa s s e nge r a ut o or t r a i l e r . Suc h us e m us t be w

i t h t he pe r m

i s s i on, or r e a s ona bl e be l i e f t o be w i t h t he pe r m i s s i on, of t he ow ne r a nd w

i t hi n t he s c ope of t h a t p e r m

i s s i o n ; a nd G EI CO ' s uni ns ur e d m

ot or i s t c ove r a ge pol i c y pr ovi s i on, pr ovi de s : But t he t e r m " i ns ur e d a ut o" doe s not i nc l ude :

. . . ( i i ) a n a ut o be i ng us e d w i t hout t he ow

ne r ' s pe r m i s s i on; . A s um m a r y j udgm

e nt pr oc e e di ng i s " not i n a ny s e ns e t o be vi e w

e d a s a s ubs t i t ut e f or a t r i a l of di s put e d f a c t ua l i ssu es". E

v c o C orpor at i on v . Ros s , 528 S . W . 2d 20, 25 ( Te nn.5

1 9 7 5 ) . W

h e r e t h e r e i s a di s p u t e as t oanym a t e r i a l f act , o r doubt a s t o t he c onc l us i ons t o be dr a w n f r om t ha t f a c t , a m ot i on f or s um

m a r y j udgm

e nt i s not a ppr opr i a t e . B y r dv. H

a l l , 847 S . W

. 2d 208 ( Te nn. 1993) . I n t hi s a c t i on, t he r e a r e di s put e d i s s ue s of m a t e r i a l f act an dt h e i n f e r e n ces w hi c hm a yb e dr a w

nf r o m e vi de nc e . N

one of t he r e por t e d c a s e s i n t hi s j ur i s di c t i on c i t e d by t he pa r t i e s i s c ont r ol l i ng, s i nc e t hos e c a s e s do not c ons i de r t he l a ngua ge c ont a i ne d i n t he s e pol i c i e s . The e vi de nc e i n t hi s r e c or d, w hi c h m us t be t a ke n i n t he l i ght m os t f a vor a bl e t o t he oppone nt s of t he m ot i on, i s t ha t D

us t i w a s of f e r e d t he oppor t uni t y t o dr i ve t he va n i n t he m or ni ng, a nd w a s l e f t w

i t h t he pos s e s s i on of i gni t i on ke ys t ha t a f t e r noon w i t hout a ny e xpr e s s pr ohi bi t i on on he r ope r a t i ng t he va n. A di s put e d f a c t ua l i s s ue i s e s t a bl i s he d a s t o w he t he r D

us t i , u n d e r al l t h e ci r c u m s t a n ces , r eas o n a b l yb e l i e v e dt h a t s h e w a s e nt i t l e dt oo p e r a t e t h e v e hi c l e at t h e t i m e an dp l ace o f t h e acci d e nt . For t he f or e goi ng r e a s ons , w e va c a t e t he s um

m a r y j udgm e nt s a nd r e m

a nd f or f ur t he r pr oc e e di ngs c ons i s t e nt w i t h t hi s opi ni on.

Th e co s t o f t h e app eal i s as s e s s e do n e - h a l f t oeach p l a i ntif f .6 ________________________ H e r s c h e l P. Fr a nk s , J . CONC UR:

___________________________ H ous t on M

. G odda r d, P. J .

___________________________ W i l l i a m H . I n m a n , Sr . J .