Court Opinion

ID: 9771423
Source: CourtListenerOpinion
Date Created: 2023-08-29 16:42:59.300985+00
Date Added: 2024-06-11T07:31:31.061038
License: Public Domain

SIDNEY H. HULETTE, Special Justice,
dissenting.
We respectfully dissent from the opinion of the majority. We believe the activities of Larry Lusby constituted a business pursuit. Charles Wanner started this ill-conceived venture in the 1970’s and continued it on into the 1980’s, when Larry Lusby invested in it. Lusby’s involvement began in September of 1985 and was ongoing at the time of the injury on August 27, 1986. Contacts were made with the Chinese government in an attempt to sell the 1,000,-000 tires. Contacts were also made with other prospective purchasers, with no success. If the tires had been sold, Lusby was to receive fifty percent (50%) of the profits. At the time of the injury, Lusby was having tires moved in order to make the property presentable in hopes of borrowing more money, the ultimate goal being a continuation of the venture.
Using the approach the Kansas court took in Krings v. Safeco Ins. Co., 2 Kan.App.2d 391, 628 P.2d 1071 (1981), we see that in order to constitute a business pursuit, there must be “continuity” and a “profit motive.” Once Lusby became involved in 1985, he stayed with the venture at least until the injury in August of 1986 — almost a year. There is nothing to indicate he would not have continued his involvement had the injury not occurred. Apparently, there was a continuous effort being made to sell the tires during this entire period of time.
The motive for Lusby’s getting involved in this activity was certainly for a profit. He acknowledged he was to receive fifty percent (50%) of whatever profit was derived from the tire sales.
In the case of Saha v. The Aetna Casualty & Surety Co., 427 So.2d 316 (Fla.App. 5 Dist., 1983), a practicing physician purchased, in 1974, a small herd of cattle as a tax shelter and left them with the seller. Shortly thereafter, he purchased 22 acres of land for investment purposes. Subsequently, in 1979, he became unhappy with the care given his cattle; and, after making certain improvements to the 22 acres [including digging a pond], moved the cattle to that property. In 1981, a young child drowned in the pond. Aetna, the physician’s homeowners carrier, denied coverage on the basis of two (2) exclusions, one of which was that the activity engaged in by the physician was a business pursuit. The Court held that both exclusions applied and denied coverage. In addressing the business pursuit exclusion, the Court looked to the policy definitions. The policy stated “business includes trade, profession or occupation.” That is exactly the same definition used in this case.
The Florida court addressing this definition applied what we believe to be the correct interpretation. Citing the case of Gaynor v. Williams, 366 So.2d 1243 (Fla. 3rd DCA 1979), which construed an identical policy definition, the Florida court stated:
the word ‘includes’ is a term of expansion ... the definition here must be read to mean that business includes, but is not limited to the ‘trade, profession or occupation’ of the insured.”
Although selling the tires was not Lusby’s livelihood, it was nonetheless a business pursuit which he admittedly hoped would turn a profit. The fact that it did not turn a profit does not negate that. Likewise, in State Farm Fire and Cas. Co. v. Drasin, 152 Cal.App.3d 864, 199 Cal.Rptr. 749 (2 Dist., 1984), an attorney entered into a limited partnership arrangement to acquire mining leases. The purpose of the partnership was to produce income, profits and write-offs incidental to the mining opera*861tions. Things did not go as planned and suit was filed by Drasin, the attorney, who alleged misdeeds by the other partners and requested recision of the partnership agreement, restitution of investments, accounting and dissolution of the partnership. The other party prevailed and then sued Drasin for malicious prosecution. State Farm, his homeowners carrier, initially defended Drasin under a reservation of rights, but later filed an action for declaratory relief stating it had no duty to defend. Among the grounds sought for relief by State Farm was a business pursuit exclusion. Drasin contended the partnership activities were not business pursuits because his occupation was as an attorney. The State Farm policy defined business as “a trade, profession, or occupation....” In holding Drasin’s activities constituted a business pursuit, the court considered the motivation for profit and the fact the partnership was operational for more than a year. In arriving at its decision, the California court cited Gaynor v. Williams, discussed in Saha, supra; and Krings v. Safeco Ins. Co. of America, relied on by the majority in this case. It also cited, with approval, Insurance Law and Practice, Appleman (1979), Vol. 7A, Section 4501.10, wherein Appleman indicates the applicability of the business pursuit exclusions is related to the motivation. The profit motive carries considerable weight, and the business engaged in need not be the sole occupation. Appleman believes part-time business activities are also included under business pursuits exclusions. We agree.
Lusby invested money, was involved in the venture for eleven (11) months prior to the injury, took title to land, tried to protect his investment, attempted to borrow money to prolong the venture, and was motivated by profit. We believe this constitutes a business pursuit and would deny coverage.
STEPHENS, C.J., and SPAIN, J., join in this dissenting opinion.