Opinion ID: 377942
Heading Depth: 2
Heading Rank: 1

Heading: Coverage of Rice

Text: 23 Transport asserts that the district court's decision should have been limited to determining the purely legal question whether Rice was covered only if he was in the course and scope of his duties as Executive Vice President at the time of the accident. Instead, the district judge not only decided this legal question, but also found that Rice was in fact acting within the scope of his duties as Executive Vice President and that Transport was therefore liable. We conclude that the district judge was within his bounds to rule on Transport's own contention that it had no duty to defend David Rice or . . . to pay any resulting judgment . . . . The district judge was not limited to determination of the purely legal question as Transport contends. 24 In addition, Transport argues that the district judge inappropriately relied on the factual findings of Simons v. SWF Plywood Co., 26 Or.App. 137, 552 P.2d 268 (1976), a case arising out of the same accident. Although the parties have provided extensive argument as to whether Transport can be collaterally estopped from denying the findings of fact developed in Simons, we are not convinced that the district judge ruled that Transport was so estopped. Nowhere in the district court opinion does it mention the doctrine of collateral estoppel or assert that Transport is bound by the fact-finding in Simons. It is equally plausible that the district judge cited Simons because he agreed with the conclusion of law based on similar facts. 25 This conclusion is strengthened by the fact that the parties are not in dispute as to the pertinent facts. Transport does not deny that Rice was Executive Vice President of SWF and Carolina Pacific. Evidence in the record indicates that he was riding in a vehicle owned by his corporate employer and assigned to him. It is also agreed that Rice and Simons had attended a top-level business meeting in Albany the day of the accident, and had returned to Medford together. Indeed, Transport acknowledges that Rice was driving Simons to Grants Pass at the end of this business day. 26 Transport argues before us not that the district judge incorrectly found these facts, but that he drew an unwarranted legal conclusion from them. Indeed, Transport appears to acknowledge that Rice was acting in the course of his employment with the company, but denies that Rice was acting as an executive officer at the time of the accident. In support of its position, Transport cites cases holding that directors and officers may also act in separate capacities as employees of the corporation. Wharton v. Fidelity-Baltimore Nat'l Bank, 222 Md. 177, 158 A.2d 887 (1960) (director); Solheim v. Hastings Housing Co., 151 Neb. 264, 37 N.W.2d 212 (1949) (officer). In turn, Transport argues that Rice was necessarily acting only as an employee in driving Simons to Grants Pass because no business decisions were being discussed during the trip. In Solheim, however, the insured actually held two distinct positions, as President of the corporation and general manager of construction, and was clearly functioning in the latter capacity at the time of the accident. 37 N.W.2d at 218-19. Transport does not allege that Rice held two distinct positions in the company, and provides no legal authority for the view that a corporate officer can be seen as somehow acting in another capacity merely because his work-related activity does not involve the exercise of his executive expertise. If Rice was acting in an employment capacity, we think it is clear that he was acting in his sole capacity as an executive officer. The lack of proof of business discussion during the automobile trip hardly forecloses the finding that Simons and Rice were still in the process of completing their day of business on behalf of the companies. While neither Simons nor the district court decision addressed Transport's dual capacity argument, we conclude that it is clearly wrong in this case as a matter of law, and that the district judge was within his bounds to reach the conclusion he did.