American Universal Ins. Co. v. Cummings
| Decision Date | 22 May 1984 |
| Citation | 475 A.2d 1136 |
| Parties | AMERICAN UNIVERSAL INSURANCE COMPANY v. Aarne M. CUMMINGS, et al. |
| Court | Maine Supreme Court |
Eaton, Peabody, Bradford & Veague, By: Clare Hudson Payne (orally), John A. Cunningham, John E. McKay, Bangor, for plaintiff.
Wheeler, Arey & Millett, P.A., By: Vernon I. Arey (orally) (for Aarne & Sonja Cummings), Waterville, Richard S. Sterns, (for Simonds) Skowhegan, for defendants.
Before McKUSICK, C.J., NICHOLS, ROBERTS, VIOLETTE, WATHEN and GLASSMAN, JJ., and DUFRESNE, A.R.J.
American Universal Insurance Company appeals from a judgment of the Superior Court, Somerset County, declaring that it had a duty to defend and indemnify its insureds, Edward and Lucille Simonds, against the personal injury action brought by Aarne and Sonja Cummings. American argues that the Cummingses' claim against the Simondses is excluded from the Simondses' homeowner's policy because it arises out of the operation of a motor vehicle owned by them. We agree with American and accordingly reverse the judgment below.
On September 8, 1978, David Simonds, age 19, was driving a 1973 Chevrolet Vega when it collided with a Jeep driven by Aarne M. Cummings, injuring Cummings and his wife, Sonja. David's parents, Edward and Lucille Simonds, were the owners of the 1973 Chevrolet Vega. The Cummingses filed suit against David, Edward and Lucille Simonds on November 23, 1979 (CV 79-251). They sought damages for their respective personal injuries, loss of services and comfort of each spouse by the other, and loss of the Jeep. In two counts they allege the negligence of Edward and Lucille in entrusting the Vega to David and in failing to insure he would not drive it.
At the time of the accident, the 1973 Vega was not insured. American is the underwriter of a homeowner's policy issued to Edward and Lucille Simonds. The Simondses demanded that American defend in the personal injury action and indemnify them should they be held liable. On January 14, 1982, American filed this declaratory judgment action against the Cummingses and the Simondses (CV 82-18). The complaint requested judgment as to whether there was a duty to defend and indemnify the Simondses. American moved for summary judgment pursuant to M.R.Civ.P. 56. The court denied American's motion and ordered summary judgment for the defendants and declared that the appellant had a duty to defend and to indemnify the Simondses. 1
Although the parties dispute much of the factual background of the underlying lawsuit, there is no genuine issue as to any facts material to decision of the declaratory judgment action. Applying well established principles, we compare the allegations contained in the Cummingses' complaint in CV 79-251 with the terms of the Simondses' homeowner's policy. If any set of facts susceptible of proof within the allegations contained in the complaint would fall within the duty to indemnify, then the insurer has a duty to defend. Baybutt Construction Corp. v. Commercial Union Ins. Co., supra; Union Mutual Fire Ins. Co. v. Inhabitants of Town of Topsham, supra; Travelers Indemnity Co. v. Dingwell, 414 A.2d 220 (Me.1980). In this case we are called upon to interpret the following exclusion from personal liability coverage, "Coverage E":
This policy does not apply:
1. Under Coverage E--Personal Liability ...:
a. to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:
(1) ...
(2) any motor vehicle owned or operated by, or loaned to any insured....
American relies upon a substantial line of cases exemplified by Cooter v. State Farm Fire & Casualty Co., 344 So.2d 496 (Ala.1977), and Barnstable County Mutual & Fire Insurance Co. v. Lally, 374 Mass. 602, 373 N.E.2d 966 (1978). The defendants in turn cite cases representative of at least six different jurisdictions, such as Upland Mutual Insurance, Inc. v. Noel, 214 Kan. 145, 519 P.2d 737 (1974); Republic Vanguard Ins. Co. v. Buehl, 295 Minn. 327, 204 N.W.2d 426 (1973). 2 For a comprehensive analysis of cases dealing with this particular exclusion, see Annot., 6 A.L.R. 4th 555 (1981).
We see no reason to add any detailed analysis of the problem. We think the Cooter line of cases is more in accord with our own approach to coverage questions. The defendants seem to...
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