Alfa Mut. Ins. Co. v. Small

• Court: Supreme Court of Alabama
• Writing for the Court: HARWOOD, Justice.
• Citation: 829 So.2d 743
• Parties: ALFA MUTUAL INSURANCE COMPANY v. Gladys L. SMALL.
• Decision Date: 15 March 2002

829 So.2d 743

ALFA MUTUAL INSURANCE COMPANY
v.
Gladys L. SMALL

1001819.

Supreme Court of Alabama.

March 15, 2002.

Alex L. Holtsford, Jr., and David P. Stevens of Nix, Holtsford, Gilliland, Lyons & Higgins, P.C., Montgomery, for appellant.

Mark Allen Treadwell III of Oliver & Sims, Dadeville, for appellee.

HARWOOD, Justice.

Alfa Mutual Insurance Company (hereinafter referred to as "Alfa") appeals the trial court's declaratory judgment in favor of Gladys L. Small. We affirm.

829 So.2d 744

On March 9, 2001, Alfa sent a letter to the trial judge stating its arguments concerning this declaratory-judgment action. Small sent a similar letter on March 12, 2001. On that same day, the parties submitted the following stipulation of undisputed facts to the trial court

"1. On August 29, 1998, Saundra Young was insured under a policy of insurance issued by Alfa Mutual Insurance Company, covering her 1979 Chevrolet Corvette automobile. That policy extended liability insurance coverage to any other person while using that specific automobile `with the express permission' of Saundra Young.

"2. On August 29, 1998, David Barclift was living with Saundra Young as her boyfriend. Saundra Young testifies that she never considered them to be married. David Barclift took the automobile without permission that day and drove the Corvette automobile to Opelika. Saundra Young was not at home at that time.

"3. David Barclift had driven the Chevrolet Corvette on a couple of occasions, each time with the express permission of Saundra Young and with her as a passenger. However, Saundra Young had told David Barclift that he could not drive her Chevrolet Corvette without specific permission, and Saundra Young did not allow David Barclift to drive either of her automobiles without her express permission. The automobile was kept at the house which Saundra Young and David Barclift were sharing at the time of the accident, and the keys were kept at the house as well. Saundra Young and David Barclift each had other operable automobiles which they respectively drove.

"4. While in Opelika on August 29, 1998, David Barclift called Saundra Young and told her that he had her automobile. Saundra Young said to David Barclift at that time, `You better get your ass in that car and drive my car home. You knew not to drive it to begin with.' David Barclift replied that he was bringing the car home.

"5. On the way home from Opelika to return the vehicle to Saundra Young, David Barclift was involved in an automobile accident in the Chevrolet Corvette automobile, with the vehicle colliding with a vehicle occupied by Plaintiff Gladys Small.

"6. David Barclift had no liability insurance otherwise. The policy of insurance issued by Alfa Mutual Insurance Company, referenced above, provided possible liability benefits of $25,000.00 per person. If David Barclift qualified as a permissive user under the insurance policy at the time of the accident, the liability insurance applies to this accident. If David Barclift did not qualify as a permissive user at the time of the accident, David Barclift was completely uninsured and the only claim in this case for insurance benefits would be against the Hartford Insurance Company, who provided uninsured/underinsured benefits to Plaintiff at the time of this accident. Hartford is a Defendant in this case pursuant to the uninsured motorist claim.

"7. Saundra Young did not file any criminal charges against David Barclift for theft of or damage to the Corvette automobile. Alfa Mutual Insurance Company made no claims against David Barclift for any subrogation interest for claims paid to Saundra Young under the collision provisions of the policy issued to Saundra Young.

"8. Alfa Mutual Insurance Company had notice and knowledge of claims asserted by Gladys Small within 30 days of the accident made the basis of this lawsuit, as Saundra Young reported the accident to Alfa Mutual Insurance Company.

829 So.2d 745

However, Saundra Young told Alfa Mutual Insurance Company during that time frame consistently that David Barclift did not have permission to drive her automobile at the time of the accident, and that he was not authorized to drive her cars without her permission whenever he wanted to do so."

On May 29, 2001, the trial court entered an order that stated, in pertinent part:

"Based on the pleadings and facts, as well as the authority submitted by the parties, the Court finds that Defendant David Barclift is an insured driver under the

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