Court Opinion

ID: 9851069
Source: CourtListenerOpinion
Date Created: 2023-09-24 05:06:58.892455+00
Date Added: 2024-06-11T09:20:48.213919
License: Public Domain

LACAGNINA, Chief Judge,
dissenting.
I disagree with the majority opinion and would reverse the judgment of the trial court and remand for entry of judgment in favor of Scottsdale declaring the motor vehicle exclusion clause applicable to the facts of this case to prohibit coverage, and in addition, I find no coverage under the completed operations and incidental contract provisions.
Arizona case law clearly states that if the use of an automobile is only incidental to the event that produced liability, the automobile exclusion clause is not applicable to deny coverage. American Modern Home Ins. Co. v. Rocha, 151 Ariz. 595, 729 P.2d 949 (App.1986); Vanguard Insurance Co. v. Cantrell, 18 Ariz.App. 486, 503 P.2d 962 (1972); Brenner v. Aetna Insurance Co., 8 Ariz.App. 272, 445 P.2d 474 (App.1968); 7A J. Appleman, Insurance Law and Practice § 4500 at 177 (Berdal ed. 1979).
It is only when the use of a motor vehicle is causally connected with the liability-producing event that coverage is excluded. Causally connected is not to be confused with proximate causation and means only that there be a connection between the accident and the use of the vehicle. Morari v. Atlantic Mutual Fire Insurance Co., 105 Ariz. 537, 539, 468 P.2d 564, 566 (1970).
There is no question in this case that the entire activity undertaken by the parties involved the direct use of a motor vehicle. The conclusion of the majority that the doctrine of concurrent negligence provides coverage misinterprets the nature of the so-called “non-auto related cause.” The non-auto related negligence must exist independently of the auto-related negligence before the doctrine of concurrent negli*480gence can be applied. As stated in Appleman, supra at 179-180:
Where the coverage of a risk is reasonably contemplated by the parties and such risk is independent of the “ownership, maintenance, operation, use, loading or unloading” of a motor vehicle within the meaning of an exclusion clause of a homeowner’s policy, the risk will be covered under the policy even if the injury also arises out of the ownership, maintenance, etc., of the vehicle; however, the liability must arise from nonvehicular conduct and must exist independently of the use or ownership of a vehicle. [Emphasis added].
The negligence which occurred in this case by moving an oversized house, loaded in a negligent manner in violation of the permit given for moving the house by use of a motor vehicle on public roads, does not exist independently of the operation, use and loading or unloading of the motor vehicle. As long as the house on the trailer, no matter how loaded, remains off the road, no liability-producing event can occur because no regulations govern this conduct. The requirements for obtaining a permit to move the house and the statutory duty to advise the utility if one is required to be in close proximity to a high voltage line are only necessary when one transports the house by use of a motor vehicle. The injury occurred in this ease because the structure was being negligently moved by a motor vehicle, and the negligent loading was directly connected to the transportation and not independent of the use of the motor vehicle. The act of filing the trigger on a gun, as in State Farm Mutual Auto Ins. Co. v. Partridge cited by the majority, is not related in any way to the use of a motor vehicle and exists independently of the careless operation of a motor vehicle. In this case, there is no negligence existing independently of the use of the motor vehicle, including the movement under the high voltage wire which caused Jenkins’ injury. In summary, every act which occurred in this case leading to Jenkins’ injury was directly connected with the movement of the house by use of a motor vehicle, an event excluded by the policy.
I would reverse the trial court finding that coverage was also provided by the completed operations and incidental contract provisions. The court found coverage under the completed operations and incidental contract provisions “since they provide no use of automobile exclusion and do not provide any other applicable exclusions so as to preclude coverage.” I disagree. There is no evidence that the event in question was a “completed operations hazard,” within the policy definition:
“completed operations hazard” includes bodily injury and property damage arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs after such operations have been completed or abandoned and occurs away from premises owned by or rented to the named insured. “Operations” include materials, parts or equipment furnished in connection therewith. Operations shall be deemed completed at the earliest of the following times:
(1) when all operations to be performed by or on behalf of the named insured under the contract have been completed,
(2) when all operations to be performed by or on behalf of the named insured at the site of the operations have been completed, or
(3) when the portion of the work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.
This coverage is applicable only for claims arising after a particular job is completed and has no application to the facts of this case.
Regarding Jenkins’ claim that the event in question was a “incidental contract” within the policy definition, we agree. The policy defined incidental contract as follows:
*481“incidental contract” means any written (1) lease of premises, (2) easement agreement, except in connection with construction or demolition operations on or adjacent to a railroad, (3) undertaking to indemnify a municipality required by municipal ordinance, except in connection with work for the municipality, (4) sidetrack agreement, or (5) elevator maintenance agreement;
In addition, the broad form endorsement provided as follows:
I. CONTRACTUAL LIABILITY COVERAGE
(A) The definition of incidental contract is extended to include any contract or agreement relating to the conduct of the named insured’s business.
I agree that under the policy definition as extended by the broad form endorsement, this contract between the owner of the structure and Interstate was an agreement relating to the conduct of the insured’s business. I do not agree that Jenkins’ is provided coverage as a result of this contract. Under the comprehensive general liability coverage, there was an exclusion for “liability assumed by the insured under any contract except an incidental contract.” There is no indication from the terms of the contract between the owner of the structure and Interstate that Interstate assumed any liability for the accident which occurred in this case, No claim was ever made against Interstate as a result of the accident claiming Interstate had assumed some liability under this contract. Therefore, the policy provides no coverage under the facts of this case under the “incidental contract” provision.