Court Opinion

ID: 9533506
Source: CourtListenerOpinion
Date Created: 2023-08-07 04:32:19.470119+00
Date Added: 2024-06-11T13:29:04.023867
License: Public Domain

ARABIAN, J., Dissenting.
I fully concur in the views expressed in Justice Baxter’s dissenting opinion that the majority’s interpretation of the relevant statutes and regulations is at odds with the plain language of these provisions, is not necessary to advance the purposes of the Highway Carriers’ Act, and is patently unfair to insurers whose only fault lies in failing to comply with an administrative technicality imposed for the convenience of the Public Utilities Commission. I write separately to highlight a substantial injustice that in my estimation seriously flaws the majority’s rationale: although Transamerica Insurance Company is now entitled to reimbursement, that fact will likely be cold comfort considering it not only has received no premiums for eight years following expiration of its policy but may well find Tab Transportation, Inc., judgment-proof when it seeks to assert its rights under the standard form endorsement.
The majority cite as the “paramount objective” of the Highway Carriers’ Act “to assure the public that commercial highway carriers can answer in *405damages when their use of California’s public highways results in injury to members of the public.” (Maj. opn., ante, at p. 404.) As they relate to this purpose, the facts here are not in dispute: at the time of the accident in question, Tab Transportation was covered by a liability insurance policy in the amount required by section 3631 of the Public Utilities Code. In accordance with section 3633, proof of such coverage in the form of a certificate of insurance was on file with the Public Utilities Commission. The insurer, Home Indemnity Company, paid the policy limits as part of a global settlement of all claims. In other words, the protected “members of the public” have received the full measure contemplated by statutory and regulatory requirements as to insurance coverage and liability limits. The majority articulate no equitable reason further responsibility for any “shortfall” as to damages should not therefore lie exclusively with the underinsured policyholder.
Nevertheless, the majority hold that because of a clerical oversight Transamerica Insurance is obligated to contribute its policy limits and then collect from Tab Transportation. This reimbursement “consolation” plainly and unjustly ignores the reality that resort to expired insurance coverage will only be necessary if the . insured cannot otherwise satisfy a judgment or settlement agreement, i.e., is insolvent. If for this reason an injured claimant cannot recover full damages, an indemnitee insurer obviously will fare no better. According to the majority, the risk of loss in this situation must fall on the insurer for policy reasons. (Maj. opn., ante, at p. 404.) However, the net effect of their holding is that an insurer that has long ceased to receive any benefit from an expired policy is forced to supplement a statutory scheme the Legislature has already deemed adequate to protect the public interest in question. Such a determination is plainly beyond the authority of the courts.
“It is the substance rather than mere form that often governs in the construction of statutes if strict adherence to form would result in an injustice.” (Bank of Alameda County v. McColgan (1945) 69 Cal.App.2d 464, 474 [159 P.2d 31]; Civ. Code, § 3528.) I cannot subscribe to the majority’s violation of this cardinal principle of law with its manifestly unjust consequences.