Court Opinion

ID: 9521926
Source: CourtListenerOpinion
Date Created: 2023-08-07 02:15:22.370089+00
Date Added: 2024-06-11T13:01:27.915463
License: Public Domain

BRYANT, J., specially concurring. I concur only in the decision reached in the majority opinion in this case. That concurrence is based solely upon the point relating to the sufficiency of the notice given by the insured to plaintiff. There is not the slightest doubt that the provisions of the insurance policy in regard to the giving of written notice were not complied with by the insured. The insurance company was prejudiced by the long delay in giving notice of the accident. The insurance company was entitled to make its customarily thorough and complete investigation within a reasonable time after the occurrence. Moreover, it was entitled to determine the type of investigation it wanted to make, follow the leads it wished to develop, and exercise its discretion in protecting itself against a claim. This is the basis of my concurrence. The principal purpose of this litigation after the question of notice was determined was to interpret and determine the meaning of certain words in the insurance policy. I find myself in complete disagreement with the interpretation of those words as set forth in the majority opinion. Consequently I find myself in disagreement with the opinion of the United States Court of Appeals for the Seventh Circuit as well as the United States District Court of the Northern District of Illinois, which in the case of Voelker v. The Travelers Indemnity Company, No. 12346, had the identical question before it and decided it in accordance with the majority opinion here. However, this is a case of first impression in Illinois. In such matters the United States courts interpret and construe the law of the state, and, as there is no decision on the point by the Supreme Court of the State of Illinois, the construction and interpretation of the United States District Court and of the United States Circuit Court of Appeals is not binding, but is only persuasive. As this case was an action for a declaratory judgment brought for the specific purpose of interpreting the language in this insurance policy, I therefore feel compelled to express my dissent in the construction, although it is not necessary for the disposition of the litigation. This contract of insurance covered first an automobile owned by the insured. As an additional inducement and coverage, by its terms it applied to the use by the spouse of the insured, and as to the insured’s automobile or a substitute automobile, to any other person using such automobile with the permission of either the insured or the spouse or to a non-owned automobile operated by the insured or his spouse. After these obligations had been assumed, the policy then provides an exception to the limits of these obligations, so far as it relates to non-owned automobiles, by saying the policy does not apply to any non-owned automobile, “. . . while used in the business or occupation of the named insured or spouse.” All of the other exceptions are not applicable, and therefore it is submitted to this court upon the question of the construction of the words “while used in the business or occupation of the named insured.” There is no question that the automobile here involved was a non-owned automobile. The construction placed upon the words which are here in question by the majority opinion does violence to two of the fundamental rules of construction of insurance policies: (1) that words shall be given in the construction of such policies their common, ordinary, and usual meaning, when taken in context with the subject matter, and (2) that all ambiguous or doubtful language in insurance policies shall be construed in favor of the insured. On these two points our courts have spoken authoritatively. In Canadian Radium & Uranium Corp. v. Indemnity Ins. Co., 411 Ill. 325, at 332 the court said: “The construction to be given insurance contracts, like other contracts, should be a natural and reasonable one. (Western and Southern Indemnity Co. v. Industrial Co., 366 Ill. 240; R. F. Conway Co. v. City of Chicago, 274 Ill. 369.) If the language is clear, the terms are to be taken and understood according to their plain, ordinary and popular sense. (Dempsey v. National Life and Accident Ins. Co., 404 Ill. 423; Pioneer Life Ins. Co. v. Alliance Life Ins. Co., 374 Ill. 576.) But because the insurer is the one who prepares the contract, ambiguous or equivocal expressions whereby the insurer seeks to limit its liability will be construed most strongly against the insurer. Pioneer Life Ins. Co. v. Alliance Life Ins. Co., 374 Ill. 576; Lenkutis v. New York Life Ins. Co., 374 Ill. 136; Midwest Dairy Products Corp. v. Ohio Casualty Ins. Co., 356 Ill. 389.” The second rule is succinctly and more forcefully stated in Ziolkowski v. Continental Cas. Co., 365 Ill. 594, at 603, as follows: “In case there is any ambiguity in the policy, the rule is that all provisions, conditions or exceptions which in any way tend to limit or defeat liability thereunder, should be construed most favorably to the insured.” Another sound reason for the second rule is stated in Ferry v. National Motor Underwriters, 244 Ill. App. 241, as follows: “The policy of insurance should not be so framed as to be susceptible of one construction in the hands of the soliciting agent, and of quite a different one in the hands of the adjuster. Travelers’ Ins. Co. v. Dunlap, 160 Ill. 642-647.” The principal consideration here is the meaning of the words used in the exclusion clause in regard to non-owned automobiles. The meanings of the word business cover a wide spectrum. At one end is the idea that, if you are doing something, you are busy, and what you are doing is your business; and if you are doing something, you are occupied, and what you are doing is your occupation. This was logically argued in the insurance company’s brief as follows: “It is difficult to see how an assured under an automobile liability policy, could drive his own or any other automobile without being engaged in the business or occupation of operating it. And this is the connotation of these words as used in the Allstate policy.” It is fearsome to contemplate the number of businesses or occupations each of us have from dawn to dawn under that interpretation. But the pot at that end of the rainbow was rudely shattered, when it was pointed out that that interpretation of this clause would completely destroy any responsibility of the company for a non-owned automobile operated by the insured. Thus that language in the insurance policy in regard to such obligation would be merely another come-on to sell. At the other end of the spectrum is the finding of the court in the order below that the insured “was not engaged in any business or occupation of his own,” and was not excluded under the terms of the policy. That would seem to infer that, because the insured worked for a salary, he did not have a business or occupation. Equally unreasonable is the reference in the majority opinion to the suggestion that, because the insured was employed as an auto mechanic, he could have no other business or occupation. Between these two extremes lies the usual and ordinary meaning of these words, when used in this context. Webster’s New International Dictionary, Unabridged, gives the following definition of occupation: “That which occupies or engages, the time and attention; the principal business of one’s life; vocation; business.” It gives as synonyms employment, pursuit, calling, vocation. This idea, that a man’s occupation is the principal business of his life, has found approval in the Supreme Court of the State of Illinois. In Union Mutual Accident Ass’n v. Frohard, 134 Ill. 228, at 234, the court said: “It would be unreasonable and absurd to hold that the merchant who at one time measured a few bushels of grain, at another hung a few rolls of wall paper upon his own premises, at another drove a team of horses in a carriage or wagon, and at still another rowed a skiff for exercise or recreation, became, within the true intent and meaning of these by-laws, at these several times, a grain measurer, a paper hanger, a teamster, and a boatman, respectively. The word ‘occupation,’ as found in these by-laws, must be held to have reference to the vocation, profession, trade or calling which the assured is engaged in for hire or for profit, and not as precluding him from the performance of acts and duties which are simply incidents connected with the daily life of men in any or all occupations, or from engaging in mere acts of exercise, diversion or recreation.” In Scott v. Freeport Motor Casualty Co., 392 Ill. 332, the Frohard case was discussed. It was pointed out that there the assured, a hardware merchant, had not changed his occupation by going on a hunting trip in the course of which he was injured. The court further said: “In 46 C.J. 897, the substance of the definition of the word ‘occupation’ given in the Frohard case is adopted. It concludes, ‘Thus it has been said that occasional acts will not constitute an occupation.’ Borovicka v. Bankers Indemnity Ins. Co. 289 Ill. App. 51; Hess v. Preferred Mason Mut. Accident Ass’n, 112 Mich. 196, 70 N. W. 460; Holliday v. American Mut. Accident Ass’n, 103 Iowa 178, 72 N. W. 448; North America Life & Accident Ins. Co. v. Burroughs, 69 Pa. St. 43. “In Everson v. General Fire & Life Assur. Corp., 202 Mass. 169, 88 N. E. 658, the court reviewed a number of cases and concluded the word ‘occupation’ as employed in insurance policies was a term of broad significance and ‘includes the trade, calling, profession, office, employment or business by which one usually gets his living. It is not incidental, recreatory or even necessary suspension of the performance of regular duty, which constitutes a change of occupation. Vacation expedients differ almost as widely as the temperaments of men. The occasional recurrence for diversion or recuperation to tilling the soil does not convert the business or professional man into a farmer. The statesman felling trees for exercise could not thereby be classified properly as a wood chopper by occupation. Where the nature of the employment is narrow and classification is strict and closely subdivided, change from one class of compensated work to another may effect a change, .... But where comprehensive phraseology is used, a slight variation from daily routine does not rise to the dignity of a change of the main purpose of one’s business activity.’ ” Both of the above cases relate to insurance liability. The most appropriate dictionary definition of the word business is “that which busies or engages time, attention or labor as a principal serious concern or interest.” The Illinois judicial interpretations of the term business are not so numerous or explicit as the ones previously cited in regard to occupation. However there is clear implication in cases not involving insurance that, when the word business is taken in its usual and ordinary sense, it means a man’s principal endeavor. In the case of Svithiod Singing Club v. McKibbin, 381 Ill. 194, a case which involved the retailers occupational tax, it was said on p. 198: “It follows that the word ‘business,’ as used in the act, is to be construed in the usual or popular meaning of the word, unless, as stated, the text or purpose of the act varies that meaning.” Then on p. 199 the court further states: “Webster defines ‘business’ as ‘any particular occupation or employment, habitually engaged in, especially for livelihood or gain.’ ” And in Walsh v. Industrial Comm., 345 Ill. 366, a case which involved the Workmen’s Compensation Act, the court said on p. 369: “The term ‘business’ in common parlance, means an employment which occupies a substantial portion of the time and attention of one engaged in it.” In People v. Maggi, 378 Ill. 595, which involved the Minimum Wage Act for women, it was said on p. 598: “The word business is defined in Webster’s Dictionary as ‘That which busies, or engages time, attention or labor as a principal serious concern or interest. Specif.: a. Constant employment; regular occupation; work; as the business of life, business before pleasure, b. Any particular occupation or employment habitually engaged in, esp. for livelihood or gain.’ ” These cases clearly indicate that the Supreme Court in statutory construction involving the word business has held, first, that the word business must be construed in its ordinary sense, and that, when it is so construed, it refers to the principal activities of an individual. Is there any reason for a different construction in a private insurance contract between a company and an insured? It appears to me that the distinction which is here made relates to the difference between a man’s vocations and his avocations. The dictionary says that a vocation is regular or appropriate employment, calling, occupation, profession. Avocation is defined as that which calls one away from one’s regular employment or vocation, a subordinate occupation, especially one pursued with enjoyment, a hobby. From the distinction above made it is evident that the words “in the business or occupation of the named insured” refer to a man’s vocation and not to his avocation. A man can have more than one occupation or business. A good example is the young man who works all day in the factory and goes to law school every night for three years. His occupation is both a factory worker and a student. Ten years later he practices law all day, and he and his wife decide to take a great books course at night. He is a lawyer. He is not a student. Business or occupation need not be single, nor need it be remunerative. A man who works all day as an auto mechanic and on Monday and Friday nights regularly bowls, has not changed or added a new occupation. The same application can be made to men who spend three or four afternoons a week on the golf course. They are still brokers or salesmen. Their business or occupation is not golf. A man who borrows another’s car and drives three or four of his buddies to Canada for a fishing trip, has certainly not changed or added to his business or occupation. It is therefore evident that, whether a man’s activities are his business or occupation is a question of intent and purpose, degree and proportion. With these ideas in mind, let us look at our militiaman. Certainly a different situation exists between a militiaman’s employment in time of peace and in time of war. Undoubtedly in time of war a man in the militia who devotes all his time to that enterprise has the occupation of a militiaman, and it is his business. It is the principal activity to which he devotes his life. What are the motives that control a young militiaman’s activities in time of peace? First, he is probably influenced to join the militia because he thinks it is the most desirable way to comply with the regulations of the government in regard to compulsory military service. Secondly, his weekly drill nights are means of study and relaxation. His intent is comparabie to that of tbe lawyer wbo takes tbe great books course or tbe auto mechanic who goes bowling. The militiaman has not acquired a new occupation or business. Probably the third motive which influences a militiaman to join is the fact that the two weeks of training in the field has certain aspects of an outing without expense and with the companionship of men of his own age. When he drives a truck which he does not own for the transportation of himself and his buddies to and from camp, he is in a position analogous to the man who borrows a station wagon to drive himself and his friends on a fishing trip. Clearly it cannot be said that, when a young man joins the militia, he has taken upon himself a new principal occupation or business. The fact that, when a militiaman attends drill or goes to field maneuvers he receives a nominal pay does not make that drill or those maneuvers his principal occupation or business. The fact that the state has an obligation to maintain a militia and that the people who enlist are fulfilling that obligation does not in my opinion change the nature of their employment or principal activity and create a new occupation or business for the enlistee. It is quite clear that the usual and ordinary meaning of the words business and occupation are not sufficient to cover the activity of our militiaman. It is an avocation, not a vocation, and therefore by that primary rule the language of exception does not affect the instant person. However, if one should differ in regard to that point, surely it must be said that the meanings of the words in the policy of the insured relating to occupation and business are at least ambiguous, and in accordance with the primary construction of insurance policies they must be construed in favor of the insured. The United States Court of Appeals in the Yoelker case used the following language: “While the question of defendant’s freedom from liability under the exclusion clauses is not free from doubt, we are of the view that the trial court reached the right conclusion. Certainly we are not convinced to the contrary.” It is difficult to reconcile this rule of construction and that language with the court’s decision.