Court Opinion

ID: 9651372
Source: CourtListenerOpinion
Date Created: 2023-08-23 16:16:53.717962+00
Date Added: 2024-06-11T18:12:32.725274
License: Public Domain

HOLMES, Circuit Judge
(specially concurring) .
I concur in the result on the ground that there was no prejudice, but I do not think appellant failed to give notice of the accident as soon as practicable. By his conduct in not hastily giving notice or other*881wise admitting any connection with the occurrence of the injury, I think the insured acted as an ordinarily prudent person would have done in the circumstances; but this is not the test in the construction of an insurance contract.
The question here is not what a reasonably prudent person would have done, but what the pertinent provisions of the insurance policy required of appellant. What was the intention of the contracting parties as evidenced by the policy itself? It provides that notice of the accident shall be given “as soon as practicable,” and that, if claim is made or suit brought against the insured, he shall “immediately” forward the claim, notice, summons, or other process to the company. The requirement of two or more notices is significant, because thereby the policy itself has taken care to protect the insurer in the event of circumstances in which it was not practicable for the insured to give notice of an accident before claim was made or suit was brought against him.
The provision requiring notice upon the occurrence of an accident must be read in connection with the agreements of the policy. When this is done we see it is not every accident that must be reported, but only an accident “arising out of the ownership, maintenance or use of the automobile.” The insurer agreed to defend any suit against the insured, even if such suit should be groundless, false, or fraudulent. The policy does not require notice of an accident which could only be the basis of a false, fraudulent, or groundless claim or suit; and the insurer is protected against such claim or suit by the provision that the insured shall immediately forward to the company every demand, notice, summons, or other process received by him or his representative.
We should not impose upon the appellant obligations not found in the policy. Notice that a false claim will probably be made is not required by any reasonable construction of the policy. Such notice would be an admission against interest which might be used prejudicially against the insured and the company.
The district court did not believe that the insured was guilty of any negligence that proximately caused the injury. On this point it was not positive and did not make a finding, but it found positively that there was no collision; that the insured reasonably believed that he was not at fault, that he was blameless, and that probably no claim would be made against him. In these circumstances the insured was not required to give notice until the claim was actually made.
The only truthful notice which appellant might previously have given would have been, in substance, that a motorcyclist passed his car, skidded, and may have been injured; that there was no collision; and that he believed no claim would be made, although the cyclist said to him very kindly, “You didn’t look.” This would have been an impractical and speculative notice. The policy does not require notice of this kind. Indemnity contracts cover the daily lives of practical people. It was not practicable for appellant to give notice of an accident arising out of the use of his automobile when he reasonably believed, as the court below found, that no such accident had occurred and that probably no such claim would be made against him.