Atlantic Mut. Ins. Co. v. Ruiz
Decision Date | 05 November 2004 |
Docket Number | No. H025852.,H025852. |
Court | California Court of Appeals Court of Appeals |
Parties | ATLANTIC MUTUAL INS. CO., Plaintiff and Appellant, v. Roberto RUIZ, Defendant and Appellant. |
This declaratory relief action arises from a multiple vehicle accident occurring on Highway 101 that was followed by a secondary collision and concerns the uninsured motorist (UM) provisions of two different policies. The trial court declared in its judgment that Robert Ruiz, the injured party, was an insured under the policy issued by Atlantic Mutual Insurance Company (Atlantic Mutual) and he was not an insured under a policy issued by American States Insurance Company (American States). Atlantic Mutual and Ruiz both appeal.
In its appeal, Atlantic Mutual asserts that Ruiz is not an insured under its policy but he is an insured under American States' policy. In his appeal, Ruiz maintains that he is an insured under both policies and each insurer has an obligation to pay its prorated share.
We affirm.
The parties submitted the case for court trial on the following stipulated facts. On October 7, 1997, Cristobol Tavares, who was driving a Toyota Camry, struck the pickup truck driven by Ruiz and then struck a van owned by Group Manufacturing Services, Inc. of California (Group Manufacturing). Ruiz, who was uninjured at this point, exited his employer's truck and "walked approximately 200 feet to where the Group Manufacturing van had stopped, to inquire about the driver's condition, to learn what had happened, and to exchange driver's license/insurance information." It was Ruiz's intention to return to the truck after obtaining documentation from the van's occupants and "wait for the police to arrive as he had been trained to do by his employer."
"As he was approximately one foot from the passenger door, attempting to talk with the driver, he was struck by an underinsured motorist, Alma Ogana," who was driving a minivan. Ruiz never entered Group Manufacturing's van.
As a result of being struck by Ogana, Ruiz suffered "a compression burst fracture at L1, torn ligaments and meniscus in his left knee, a fracture of his left tibia, a fracture of his right tibial plateau, and abdominal trauma as well as post-traumatic stress disorder."
At the time of the initial collision, "Ruiz was driving a vehicle owned by his employer, Fast UnderCar, and he was acting in the course and scope of his employment with Fast UnderCar." Ruiz sought and recovered workers compensation benefits.
American States had issued a commercial auto policy to Fast Pro, Inc., and Fast UnderCar, Inc., as the named insured. Atlantic Mutual had insured Group Manufacturing under a business auto policy. Both policies provided $1 million in underinsured motorists (UIM) benefits1 and were in effect at the time of the accidents.
The "California Uninsured Motorist Coverage—Bodily Injury" endorsement, which is contained in both policies at issue, provides coverage as follows:
The term "insured" is defined, as relevant, to include "[y]ou" or "[a]nyone else `occupying' a covered `auto' . . . ." "Occupying" is further defined to mean "in, upon, getting in, on, out or off."
"On July 21, 1998, Mr. Ruiz and his wife filed a personal injury lawsuit against the other drivers" and "recovered a total of $65,000 in policy limits from the other drivers . . . ." "Ruiz made a claim for UIM benefits against Atlantic Mutual and American States, demanding a total of $1 million in damages." Both insurers denied the claim.
The trial court determined that Ruiz was not "occupying" his employer's pickup truck and, therefore, was not covered under the UM provisions of American States' policy. The court noted that the injury occurred "approximately 200 feet from this vehicle" and Ruiz was "not engaged in `performance of acts "physically and directly related to the car" or its use' . . . ."
As to the Group Manufacturing vehicle, the court indicated that it was important to consider "the fact that Defendant Ruiz, who despite being approximately one foot from this vehicle at the time of his injury, was never an occupant of this vehicle, had no intention of occupying it, had only minimal contact with the vehicle (opening the passenger door), and was totally unknown to either Group Manufacturing, Inc., its insurance carrier, Atlantic Mutual, or the driver and its passenger." Nevertheless, the court concluded that Ruiz was an insured under the UM provisions of Atlantic Mutual's policy. Its conclusion was predicated upon "location of the Group Manufacturing, Inc., vehicle (and how it came to be so located)," the fact that Ruiz was placed in harm's way because he was "assisting someone from `getting out' of the insured vehicle," "the public policy of affording coverage to the injured," and the rule requiring ambiguities to be resolved in favor of coverage.
To be entitled to coverage under Atlantic Mutual's endorsement for uninsured motorist coverage, Ruiz had to qualify as an "insured" within the meaning of the UM coverage provisions. As mentioned, the term "insured" included "[a]nyone else `occupying' a covered `auto'" and "occupying" was further defined to "mean[] in, upon, getting in, on, out, or off." The question in this case is whether Ruiz was "upon" Group Manufacturing's van when he was struck by the underinsured motorist.
Atlantic Mutual argues that the trial court improperly disregarded the plain meaning of the policy in finding UM coverage for Ruiz because "Ruiz is a stranger to the Atlantic Mutual policy" and he never occupied or intended to enter or occupy the vehicle it insured. It maintains that Ruiz was not an "insured" because "physical proximity" to Group Manufacturing's van was not enough and because he was not a "permissive user" of the van. Atlantic Mutual refers us to two Virginia cases, which adopted a narrow construction of the term "upon" and required some immediate connection related to "occupying" the insured vehicle. (See Pennsylvania Nat'l Mut. Cas. Ins. Co. v. Bristow (1966) 207 Va. 381, 150 S.E.2d 125, 126-128 [ ]; Edwards v. Government Employees Ins. Co. (1998) 256 Va. 128, 500 S.E.2d 819, 819-822 [ ].)
The general rules of policy construction guide our determination whether Ruiz was an insured by virtue of "occupying" Group Manufacturing's van. (Palmer v. Truck Ins. Exchange (1999) 21 Cal.4th 1109, 1115, 90 Cal.Rptr.2d 647, 988 P.2d 568.) (Palmer v. Truck Ins. Exchange, supra, 21 Cal.4th at p. 1115, 90 Cal.Rptr.2d 647, 988 P.2d 568.)
(Palmer v. Truck Ins. Exchange, supra, 21 Cal.4th at p. 1115, 90 Cal.Rptr.2d 647, 988 P.2d 568.)
(Palmer v. Truck Ins. Exchange, supra, 21 Cal.4th at p. 1118, 90 Cal.Rptr.2d 647, 988 P.2d 568.) "[A] word with a broad meaning or multiple meanings may be used for that very reason—its breadth—to achieve a broad purpose." (Bay Cities Paving & Grading, Inc. v. Lawyers' Mutual Ins. Co. (1993) 5 Cal.4th 854, 868, 21 Cal.Rptr.2d 691, 855 P.2d 1263.) ...
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