Allen v. Allstate Ins. Co.

• Decision Date: 06 May 2009
• Docket Number: No. 08-1451.,08-1451.
• Parties: Thomas ALLEN v. ALLSTATE INSURANCE COMPANY, Patrick Brupbacher, Douglas Chesson and Willa Chesson.
• Court: Court of Appeal of Louisiana — District of US

10 So.3d 374

Thomas ALLEN v. ALLSTATE INSURANCE COMPANY, Patrick Brupbacher, Douglas Chesson and Willa Chesson.

No. 08-1451.

Court of Appeal of Louisiana, Third Circuit.

May 6, 2009.

Blake R. David, Broussard & David, L.L.C., Lafayette, Louisiana, for Plaintiff/Appellant, Thomas Allen.

John W. Penny, Jr., Penny & Hardy, Lafayette, Louisiana, for Defendant/Appellee, Allstate Insurance Company.

Mark L. Riley, Onebane Law Firm, Lafayette, Louisiana, for Defendant/Appellee, Halliburton Energy Services.

David A. Hurlburt, Hurlburt, Privat, & Monrose, Lafayette, Louisiana, for Defendant/Appellee, USAgencies Casualty Ins. Co.

Robert L. Ellender, Voorhies & Labbe, Lafayette, Louisiana, for Defendant/Appellee, Patrick Brupbacher.

Maurice L. Tynes, Lake Charles, Louisiana, for Defendants/Appellees, Douglas Chesson and Willa Chesson.

Court composed of ULYSSES GENE THIBODEAUX, Chief Judge, BILLY H. EZELL, and JAMES T. GENOVESE, Judges.

GENOVESE, Judge.

In this personal injury case, Plaintiff, Thomas Allen, appeals the trial court's grant of summary judgment in favor of Defendant, Allstate Insurance Company (Allstate), finding that no coverage exists for the alleged negligence of Defendant, Patrick Brupbacher, under the personal umbrella policy issued by Allstate to its named insureds, Defendants, Douglas¹ and Willa Chesson (the Chessons). For the following reasons, we affirm.

FACTS

On November 3, 2004, Mr. Allen was involved in an automobile accident in Lafayette, Louisiana, with Mr. Brupbacher, the grandson of Allstate's named insureds, the Chessons. It is undisputed that at the time of the accident: a) Mr. Brupbacher was operating a 1999 Suburban with the permission of its owners, the Chessons; b) Allstate had issued to the Chessons both a primary automobile liability policy bearing policy number 91768237² and a personal umbrella policy bearing policy number 910768235 (the umbrella policy); and, c) Mr. Brupbacher was not residing with the Chessons at the time of the subject accident.

Mr. Allen filed suit against Mr. Brupbacher, the Chessons, and Allstate for the personal injuries he allegedly sustained as a result of the subject accident. Allstate, in its capacity as the insurer under the umbrella policy, filed a Motion for Summary Judgment on the issue of insurance coverage. Allstate contended that there was no liability coverage under the umbrella policy for the actions of Mr. Brupbacher. Additionally, a Motion for Summary Judgment was filed on behalf of Willa Chesson, asserting that Mrs. Chesson did not negligently entrust the vehicle to Mr. Brupbacher and that he was not on a mission for her, thereby triggering vicarious liability. Following a hearing on both Motions for Summary Judgment, the trial court found that no coverage existed under the umbrella policy and that there was no liability, either directly or vicariously, on the part of the Mrs. Chesson. In accordance therewith, the trial court signed a judgment dismissing Allstate and the Chessons from this litigation. It is from this judgment that Mr. Allen appeals.

ISSUES

Mr. Allen presents the following issues for our review:

1. whether the Allstate Insurance Company Umbrella Policy (No. 910768235) issued to Douglas and Will[a] Chesson covers Patrick Brupbacher (permissive user) while operating the "covered auto", 1999 G.M.C. Suburban, owned by the Chessons[; and]

2. whether the Allstate Insurance Company Umbrella Policy (No. 910768235) issued to Douglas and Will[a] Chesson covers Patrick Brupbacher while operating the "covered auto" on a paid mission for Douglas and Will[a] Chesson.

LAW AND DISCUSSION

Standard of Review

The governing jurisprudence relative to a motion for summary judgment and our appellate standard of review thereof have recently been reiterated by our supreme court as follows:

A motion for summary judgment is a procedural device used when there is no genuine issue of material fact for all or part of the relief prayed for by a litigant. Duncan v. U.S.A.A. Ins. Co., 2006-363[,] p. 3 (La.11/29/06), 950 So.2d 544, 546, see [La.Code Civ.P.] art. 966. A summary judgment is reviewed on appeal de novo, with the appellate court using the same criteria that govern the trial court's determination of whether summary judgment is appropriate; i.e. whether there is any genuine issue of material fact, and whether the movant is entitled to judgment as a matter of law. Wright v. Louisiana Power & Light, 2006-1181[,] p. 17 (La.3/9/07), 951 So.2d 1058, 1070; King v. Parish National Bank, 2004-0337[,] p. 7 (La.10/19/04), 885 So.2d 540, 545; Jones v. Estate of Santiago, 2003-1424[,] p. 5 (La.4/14/04), 870 So.2d 1002, 1006.

Samaha v. Rau, 07-1726, pp. 3-4 (La.2/26/08), 977 So.2d 880, 882-83.

Mayers v. Marmet, 08-127, pp. 5-6 (La. App. 3 Cir. 5/28/08), 985 So.2d 315, 319-20, writ denied, 08-1402 (La.9/26/08), 992 So.2d 993 (footnote omitted).

"Permissive User" and "Covered Auto"

Mr. Allen asserts that the umbrella policy provides coverage to Mr. Brupbacher and the 1999 Suburban owned by the Chessons. In support of his contention, he argues that "[t]he primary Allstate policy provides coverage for Patrick Brupbacher (uncontested) and the 1999 G.M.C. Suburban (uncontested)."

Although Mr. Allen classifies Mr. Brupbacher as a "permissive user" and the 1999 Suburban as a "covered auto," these terms are expressly defined and relevant to coverage only under the primary policy which is not at issue. As noted above, coverage under the primary automobile liability policy was not contested by Allstate. Mr. Allen's argument that coverage exists under the umbrella policy on the grounds that Mr. Brupbacher is a "permissive user" and that the Suburban is a "covered auto" under the primary policy is erroneous. As discussed in detail below, coverage under a primary automobile liability policy does not equate to ipso facto coverage under an umbrella policy. The classifications of "permissive user" and "covered auto" under the primary policy are irrelevant to a determination of whether coverage exists under the Allstate umbrella policy for the alleged negligent actions of Mr. Brupbacher while operating the 1999 Suburban.

The question of coverage under the umbrella policy is resolved by the express terms of the umbrella policy itself. On the interpretation of insurance contracts, our supreme court has stated as follows:

An insurance policy is a contract between the parties and should be construed using the general rules of interpretation of contracts set forth in the Civil Code. Louisiana Ins. Guar. Ass'n v. Interstate Fire & Casualty Co., 93-0911 (La.1/14/94), 630 So.2d 759, 763; Smith v. Matthews, 611 So.2d 1377, 1379 (La.1993); Schroeder v. Board of Sup'rs of Louisiana State University, 591 So.2d 342, 345 (La.1991). If the words of the policy are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent and the agreement must be enforced as written. Smith, supra at 1379; Central Louisiana Elec. Co., Inc. v. Westinghouse Elec. Corp., 579 So.2d 981, 985 (La.1991); Pareti v. Sentry Indem. Co., 536 So.2d 417, 420 (La.1988); see La. C.C. art. 2046. An insurance policy should not be interpreted in an unreasonable or strained manner so as to enlarge or restrict its provisions beyond what is reasonably contemplated by its terms or so as to achieve an absurd conclusion. Interstate, supra at 763; Fertitta v. Palmer, 252 La. 336, 211 So.2d 282, 285 (1968). The policy should be construed as a whole and one portion thereof should not be construed separately at the expense of disregarding another. Westinghouse, supra at 985; Pareti, supra at 420; see La. C.C. art.2050. If after applying the other general rules of construction an ambiguity remains, the ambiguous contractual provision is to be construed against the insurer who issued the policy and in favor of the insured. Interstate, supra at 764; Smith, supra at 1379; Pareti, supra at 420; see La. C.C. art.2056.

Hebert v. Webre, 08-60, pp. 4-5 (La.5/21/08), 982 So.2d 770, 773-74.

In this case, the umbrella policy sets forth, relative to coverage, that "Allstate will pay when an insured becomes legally obligated to pay for personal injury, property damage or bodily injury caused by an occurrence." These highlighted terms are expressly defined within the "[d]efinitions" section of the umbrella policy. Included therein is the definition of "[i]nsured" which includes "you" and "relatives residing in your household." The terms "[y]ou" or "[y]our" are defined to mean "the person named in the declarations." The declarations in the instant policy include the "NAMED INSURED(S)[,]" "Dr[.] Douglas Chesson" and "Willa C[.] Chesson."

Based upon these express policy provisions, for coverage to exist under the umbrella policy for the alleged negligent actions of Mr. Brupbacher, he must first meet the definition of "insured." Obviously, he is not one of the named insureds, Dr. and Mrs. Chesson. Additionally, it is not disputed that Mr. Brupbacher, although a relative of the Chessons, was not residing in their household. As such, Mr. Brupbacher is not an "insured" under the umbrella policy. The umbrella policy provides coverage only to those individuals meeting the definition of "insured" which does not include every permissive user of a vehicle owned by the named insureds. These clear and explicit policy provisions must be enforced as written.

In support of his assertion that coverage exists under the umbrella policy for the subject accident, Mr. Allen also relies on the definition of an "insured auto," which the umbrella policy defines as "a motor vehicle for which this policy provides excess liability insurance for an insured person with respect to the accident." Mr. Allen then reasons that "[i]t is uncontested that this 1999 G.M.C. Suburban is a covered auto under the primary policy. Accordingly, the Chesson vehicle and its permissive user are insureds...