Court Opinion

ID: 9453706
Source: CourtListenerOpinion
Date Created: 2023-08-04 18:21:09.714335+00
Date Added: 2024-06-11T17:33:45.587223
License: Public Domain

MARVIN JONES, Senior Judge
(dissenting) :
I regret that I am unable to agree with the majority opinion. Under my view of the case, Louise Agee should be considered a named insured both because the policy is ambiguous and because even if it were unambiguous, appellant would be entitled to reformation so as to include her as named insured.
The ambiguity in the policy results from the inclusion of Louise’s name in a large box in the lower right-hand corner of the declarations page along with the name of Bennie Agee. The box contained a small printed phrase, “ *** 12:01 A.M., standard time at the address of the named insured as stated herein.” Stamped in the box in large letters immediately under the printed phrase is the name of B. W. Agee, and right under his name is that of M. Louise. These names are set out in bold relief in the renewal policy. Anyone reading it could reasonably interpret the words “named insured as stated herein” to refer to the names in the box as well as to Item I, which listed only B. W. Agee as the named insured. This is especially so because no other reason for the inclusion of Louise’s name appears on the face of the declarations page. It is true, as the majority opinion points out, that the insurance company had its own undisclosed purposes in putting her name in the box, but these purposes could not be discovered by appellant upon an examination of the policy. In my judgment the box containing the names of Bennie and Louise is somewhat similar to a mortgage clause written in a deed which completely changes the nature of the instrument. The effect of the inclusion of the names, in the box was, at the least, to create an ambiguity in the policy with regard to whether Louise was a darned insured.
*61It has long been held that ambiguities in insurance policies should be resolved •against the insurer. E. g., Mutual Life Insurance Company v. Hurni Packing Company, 263 U.S. 167, 44 S.Ct. 90, 68 L.Ed. 235 (1923). The ambiguous policy before us should be interpreted so as to make Louise Agee a named insured.
Even if the policy unambiguously stated that appellant was the only named insured, however, I would still reverse, because I believe the evidence shows that appellant is entitled to a reformation of the policy so as to include Louise as a named insured. Appellant testified that he advised appellee’s representative Whitehurst before the renewal policy was issued that he and his wife had separated; that he had left the home and lived elsewhere and that she remained In the home, and that a divorce was contemplated.
The trial judge stated that he adopted Whitehurst’s testimony and found that “B. W. Agee requested no changes in the insurance policy and that there was thus no antecedent agreement between B. W. Agee and the insurance agent or any other basis on which to reform or otherwise extend the coverage beyond the terms of the policy as placed in evidence.”
In making this finding, the trial court evidently overlooked the testimony of Whitehurst that, in a conversation prior to the renewal of the policy, appellant had “probably” informed him of the impending divorce. I quote from the Transcript of Record, p. 82:
Q. Now if I understand you correctly, you did acknowledge Mr. Agee had a conversation with you in which, before the issuance of this renewal policy, in which you were informed that he was separated from his wife? A. Yes.
Q. Did that conversation also advise you that a divorce was also contemplated between the parties? A. Probably so. Sometime in the future, but at that time, there was no indication of any date or time involved.
The foregoing testimony of Whitehurst was an admission against interest which, when coupled with appellant’s testimony that he had informed Whitehurst of the divorce, convinces me that the trial judge was in error in finding no basis on which to reform the contract.
When all the testimony is considered and the underbrush is cleared away some naked facts stand out in stark relief. Whitehurst, the authorized agent of Travelers, sold a policy in 1963 to B. W. Agee covering two automobiles, one owned by Agee and one by his wife, the title to which was in her name. Pursuant to Whitehurst’s usual custom, only the husband’s name was used, but both parties and both cars were covered in that policy. The Agees lived together until June 1, 1964, when they were separated. The wife stayed at the same residence, the husband moved to another address.
A renewal policy was issued on July 3, 1964, covering both cars. Before the renewal policy was issued, the agent was informed that the Agees were separated, and all the positive testimony is that he was told that a divorce was contemplated. The divorce suit was actually filed just 3 days after the date of the renewal policy. Divorce proceedings are a matter of public record.
The record justifies the conclusion that Whitehurst knew a divorce was contemplated and that appellant wanted to continue coverage on both cars. Notice to Whitehurst was notice to the insurance company. Appellant, by informing Whitehurst of the impending divorce and of his wishes with regard to the insurance, did all he reasonably could to assure continued coverage for Louise, and he was left with the impression that his insurance coverage was as he desired. If Whitehurst knew that upon divorce Louise would no longer be insured, at the very least he should have informed appellant of this fact and of the steps necessary to continue her coverage. Ap*62pellant should not be made to suffer the consequences of Whitehurst’s default. I would reform the contract to provide continued coverage for Louise after the divorce.