Allstate Ins. Co. v. Executive Car and Truck Leasing, Inc.
| Decision Date | 10 July 1986 |
| Docket Number | 67409,Nos. 67368,s. 67368 |
| Citation | 11 Fla. L. Weekly 311,494 So.2d 487 |
| Court | Florida Supreme Court |
| Parties | 11 Fla. L. Weekly 311, 11 Fla. L. Weekly 539 ALLSTATE INSURANCE COMPANY, Petitioner, v. EXECUTIVE CAR AND TRUCK LEASING, INC., et al., Respondents. and COMMERCIAL UNION INSURANCE COMPANY, et al., Petitioners, v. EXECUTIVE CAR AND TRUCK LEASING, et. al., Respondents. |
Wayne T. Gill and Luis S. Konski of Walton, Lantaff, Schroeder & Carson, West Palm Beach, on behalf of Allstate Ins. Co.
Eric A. Peterson of Peterson & Fogarty, P.A. and Richard A. Sherman of Law Offices of Richard A. Sherman, Fort Lauderdale, on behalf of Commercial Union Ins. Co. and Action Bolt & Tool Co. Brian C. Powers and Lloyd J. Heilbrunn of Law Offices of Brian C. Powers, Lake Worth, for respondents.
We have for review Executive Car and Truck Leasing Inc. v. De Serio, 470 So.2d 21 (Fla. 4th DCA 1985), which expressly and directly conflicts with decisions of other district courts of appeal and this Court. We have jurisdiction. Art. V, § 3(b)(3), Fla. Const.
Executive Car and Truck Leasing (Executive) leased an automobile to Lake Park Industrial Supply. Action Bolt and Tool Company (Action) is the successor in interest to Lake Park Industrial Supply. Robert Mendelsohn, an employee of Action, drove the vehicle in a negligent manner, causing a collision with a vehicle driven by Alberta De Serio. Mendelsohn was killed and De Serio was severely injured. De Serio was awarded $1,200,000 in damages. We are now faced with the task of ordering the five applicable insurance policies.
Industrial Indemnity Insurance Company (Industrial) insured Executive, the owner/lessor of the vehicle, under a primary policy in the amount of $500,000 and an umbrella policy with $5,000,000 limits. Commercial Union Insurance Company (Commercial) insured Action, the lessee, under a primary policy with $1,000,000 limits and an umbrella policy in the amount of $20,000,000. Allstate Insurance Company (Allstate) insured Mendelsohn, the negligent driver, under a primary insurance policy with liability coverage of $100,000.
The Fourth District Court of Appeal allocated the responsibility for payment of De Serio's judgment as follows:
1) Industrial Indemnity Company in the amount of $10,000;
2) Allstate Insurance Company in the amount of $100,000;
3) Commercial Union Insurance Company's primary policy in the amount of $1,000,000;
4) Commercial Union Insurance Company's excess policy in the amount of $20,000,000;
5) Industrial Indemnity Company's primary policy in the amount of $500,000;
6) Industrial Indemnity Company's excess policy of $5,000,000.
This case provides us with an opportunity to apply a trilogy of recently decided cases in which we set forth the principles of law a court must apply when faced with the task of layering numerous insurance policies. Allstate Insurance Co. v. Fowler, 480 So.2d 1287 (Fla.1985); Metropolitan Property and Life Insurance Co. v. Chicago Insurance Co., 479 So.2d 114 (Fla.1985); Maryland Casualty Co. v. Reliance Insurance Co., 478 So.2d 1068 (Fla.1985).
In Fowler and Maryland Casualty, we held that the insurer of the owner/lessor of the vehicle is responsible for the first $10,000 in damages, the amount of insurance the owner of a vehicle is required to maintain under the financial responsibility laws of Florida, section 324.151(1)(a) and 324.021(7), Florida Statutes (1981), unless the lessor properly shifted the burden of primary insurance pursuant to section 627.7263, Florida Statutes (1981). Executive does not contest the fact that they failed to shift the burden of primary insurance to the lessee. Thus, Industrial, Executive's insurer, must provide the first $10,000 worth of coverage.
Both Industrial and Commercial contend that their policies of insurance are entitled to follow the policy issued by Allstate, as a matter of law, because the Industrial and Commercial policies were issued to parties who are only vicariously liable and the Allstate policy was sold to the actively negligent party. According to Fowler and its progeny, the insurer of the vicariously liable party must be entitled to indemnity before it is automatically entitled to follow the insurer of the actively negligent party. The insurer of a vicariously liable party is only entitled to indemnity if it does not insure a joint tortfeasor or the actively negligent party as an additional insured. 480 So.2d at 1290. Commercial's policies insure Mendelsohn, the actively negligent party, as an additional insured. Industrial's policies do...
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