American Cas. Co. of Reading, Pa. v. Heary

Citation432 F. Supp. 995
Decision Date07 June 1977
Docket NumberCiv. A. No. 76-72-NN.
PartiesAMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA, Plaintiff, v. Virginia HEARY, Ricky W. Jenkins, Continental Telephone Company of Virginia, Poquoson Motors, Inc., and Universal Underwriters Insurance Company, Defendants.
CourtUnited States District Courts. 4th Circuit. United States District Court (Eastern District of Virginia)

John Y. Pearson, Jr., Willcox, Savage, Lawrence, Dickson & Spindle, P.C., Norfolk, Va., for plaintiff.

C. F. Hicks, J. Edgar Pointer, Jr., Gloucester, Va., Thomas M. Haskins, Kellam, Pickrell & Lawler, George Pilcher, Jr., Norfolk, Va., for defendants.

AMENDED MEMORANDUM OPINION AND ORDER

CLARKE, District Judge.

The Court has before it the question of the extent of liability insurance coverage available to three parties making claim for property damage against Virginia Heary. The claims resulted from Heary's operation of her motor vehicle which was insured by the plaintiff, American Casualty Company of Reading, Pennsylvania (American Casualty).

All parties have entered into a stipulation of facts which show that Virginia Heary, while operating her motor vehicle at night, lost control causing the vehicle to fail to make a turn, to crash into a sign and barrier, and to become entangled with a guy wire attached to a telephone pole. Approximately one minute after the guy wire was struck, it broke and the pole to which it was attached broke immediately thereafter, resulting in three telephone cables falling across both northbound and southbound lanes of Route 17. Within fifteen seconds thereafter a vehicle traveling in the northbound lane became ensnared in the wires and was damaged. Almost simultaneously a vehicle driven in the southbound lane struck part of the broken telephone pole and was damaged. Claims have been made by the telephone company (Continental) and for the property damage to both cars. These claims exceed $5,000. This action had its inception when American Casualty interpleaded its insured, Virginia Heary, and the property damage claimants and their assignees. In its interpleader action, American Casualty asserted that it had limits of $5,000, property damage coverage under its policy on Virginia Heary's automobile and that it desired to pay that policy limit into the registry of the Court for such distribution among the property damage claimants as the Court might order. The issue addressed in this Order arises by virtue of the property damage claimants' contention that American Casualty has available $5,000 coverage as to each claim being asserted against Virginia Heary.

The policy issued by American Casualty to Virginia Heary provided, in part:

"PART I—LIABILITY
"Coverage A — Bodily Injury Liability; Coverage B — Property Damage Liability. To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of:
* * * * * *
"B. injury to or destruction of property, including loss of use thereof, hereinafter called `property damage';"

The insuring obligation set forth above is limited by the declarations page of the policy by the following language:

"The insurance afforded is only with respect to such of the following coverages as are indicated by specific premium charge or charges. The limit of the company's liability against each such coverage shall be as stated herein, subject to all the terms of this policy having reference thereto."

Following that statement it is indicated that for property damage liability, the policy extends $5,000 coverage for "each occurrence."

The policy further provides:

"The limit of property damage liability stated in the declarations as applicable to `each occurrence' is the total limit of the company's liability for all damages arising out
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16 cases
  • Michigan Chemical Corp. v. American Home Assur. Co.
    • United States
    • U.S. Court of Appeals — Sixth Circuit
    • 1 Marzo 1984
    ...(Lloyd's policy language); E.B. Michaels v. Mutual Marine Office, Inc., 472 F.Supp. 26, 29 (S.D.N.Y.1979); American Casualty Co. v. Heary, 432 F.Supp. 995, 997 (E.D.Va.1977); Union Carbide Corp. v. Travelers Indemnity Co., 399 F.Supp. 12, 15-18 (W.D.Pa.1975). 5 The number and timing of inju......
  • CSX Transp., Inc. v. Continental Ins. Co.
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    ...Company of Illinois v. Medical Protective Company of Fort Wayne, 575 F.Supp. 901, 903 (N.D.Ill.1983); American Casualty Company of Reading, Pa. v. Heary, 432 F.Supp. 995, 997 (E.D.Va.1977); Elston-Richards Storage Co. v. Indemnity Insurance Co., 194 F.Supp. 673, 681 (W.D.Mich.1960), aff'd, ......
  • Owens-Illinois, Inc. v. United Ins. Co.
    • United States
    • New Jersey Superior Court — Appellate Division
    • 29 Abril 1993
    ...Ins. Co. v. Lee Way Motor Freight, Inc., 487 F.Supp. 1325, 1330 (N.D.Tex.1980) (Lloyd's policy language); American Cas. Co. of Reading, Pa. v. Heary, 432 F.Supp. 995, 997 (E.D.Va.1977); Union Carbide Corp. v. Travelers Indem. Co., 399 F.Supp. 12, 21 (W.D.Pa.1975); Doria v. Insurance Co. of ......
  • Diamond Shamrock Chemicals Co. v. Aetna Cas. & Sur. Co.
    • United States
    • New Jersey Superior Court — Appellate Division
    • 4 Junio 1992
    ...Ins. Co. v. Lee Way Motor Freight, Inc., 487 F.Supp. 1325, 1330 (N.D.Tex.1980) (Lloyd's policy language); American Cas. Co. of Reading, Pa. v. Heary, 432 F.Supp. 995, 997 (E.D.Va.1977); Union Carbide Corp. v. Travelers Indem. Co., 399 F.Supp. 12, 21 (W.D.Pa.1975); Doria v. Ins. Co. of North......
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