Opinion ID: 1801724
Heading Depth: 1
Heading Rank: 3

Heading: JTI's Business and Insurance Coverage

Text: JTI is a carrier company that usually performs its hauling contracts by subcontracting with independent truckers, although it owns a fleet of tractors and trailers. In 1999, the year of the accident in question, JTI owned 12 tractors, sometimes commonly referred to as power units, and 80 trailers, sometimes referred to as semitrailers when doubled up for towing behind a power unit. Each tractor is designed to pull two trailers. Accordingly, JTI utilized up to 12 tractors and 24 paired trailers, employing its own drivers for those rigs. It routinely leased the remaining 56 trailers to independent contractors pursuant to a standard trailer lease agreement, such as the one executed by Justice and JTI below. During 1999, JTI had approximately 70 active subhaul agreements with various independent contractors it used on a regular basis. Under those agreements, the independent contractors received 95 percent of the fee JTI charged its customers for jobs undertaken while using their own trailers, but only 75 percent if they leased trailers from JTI. Put differently, JTI charged the independent truckers 20 percent percent of the fee earned on a hauling job for the lease of its trailers. JTI's gross income from trailer rentals to independent contractors during the year in question was nearly $650,000. JTI did not lease its trailers to the general public. Fidelity insured JTI under a comprehensive general liability policy that specifically described and rated the two trailers owned by JTI and leased to Justice as covered vehicles. Justice was not named as an additional insured, nor was his self-owned Peterbilt tractor mentioned or rated under JTI's policy. The policy also contained an other insurance clause, which provided that while a covered `auto' which is a `trailer' is connected to another vehicle, the liability coverage this Coverage Form provides for the `trailer' is: ... [¶] (1) Excess while it is connected to a motor vehicle you [i.e., JTI] do not own.... (2) Primary while it is connected to a covered `auto' you own.