Blair v. Travelers Ins. Co.

• Decision Date: 02 July 1935
• Parties: BLAIR v. TRAVELERS INS. CO. et al. GRAVEY v. SAME.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

291 Mass. 432
197 N.E. 60

BLAIR
v.
TRAVELERS INS. CO. et al.
GRAVEY
v.
SAME.

Supreme Judicial Court of Massachusetts, Worcester.

July 2, 1935.

Two actions of tort by Henrietta L. Blair and Timothy J. Garvey, administrator of the estate of Daniel Garvey, against the Travelers Insurance Company and another. From judgments for plaintiffs, named defendant appeals.

Reversed and remanded.

See, also, 192 N. E. 467.

[197 N.E. 61]

Appeal from Superior Court, [291 Mass. 433]Worcester County; Goldberg, Judge.
D. F. Gay, of Worcester, for appellant Travelers Ins. Co.

E. A. Ryan, of Worcester, for appellees.

LUMMUS, Justice.

One Toren owned an automobile covered by a motor vehicle liability insurance policy issued by the defendant. He lent the automobile at Northboro on Saturday, October 24, 1931, to one Dion, for the purpose of enabling Dion to take it that night to Dion's house in Webster and on Sunday morning to Worcester to show to a prospective buyer. Dion agreed to bring back the automobile or the money on Monday morning. Nothing was said as to using the automobile for any other purpose. Dion had no license to operate an automobile.

Dion failed to sell the automobile, and had it in his possession in Webster on Sunday evening, when he went for a pleasure ride in it with one Daniel Garvey, the plaintiff Henrietta L. Blair, one Perreault and a Miss Duquette. While the automobile was being operated near the town of Southbridge by Perreault, who had no license to operate, with Dion sitting beside him, and while both were trying to control the automobile, it overturned, killing Daniel Garvey and injuring the plaintiff Blair. In actions of tort against Dion, the plaintiff Blair recovered judgment for $8,500 and costs for personal injuries, and the plaintiff Timothy J. Garvey, administrator, recovered judgment for $8,755 and costs for the death of his intestate, Daniel Garvey, under G. L. (Ter. Ed.) c. 229, § 5.

Section A of the insurance policy, which was intended to comply with the Massachusetts compulsory motor vehicle [291 Mass. 434]liability security law, limited the obligation of the defendant to $5,000 for liability for injury to or death of one person, and $10,000 for liability for injury to or death of more than one person, resulting from any one accident. By Section A the defendant undertook to pay on behalf of the ‘Assured’ all sums within those limits which the ‘Assured’ shall become liable to pay by reason of liability for personal injury or death resulting from the ownership, operation, maintenance, control or use of the insured automobile upon the ways of the Commonwealth of Massachusetts. As to Section A it was provided that the word ‘Assured’ shall include not only the named Assured, Toren, ‘but also any other person responsible for the operation of the named Assured's motor vehicle or trailer described herein with his express or implied consent.’ This language conformed to the requirements of G. L. (Ter. Ed.) c. 90, § 34A.

In suits in equity under G. L. (Ter. Ed.) c. 214, § 3(10), to apply the insurance towards the satisfaction of the judgments, the defendant contended that at the time of the accident Toren's automobile was being

[197 N.E. 62]

operated under such circumstances that Dion was not an ‘Assured’ under the provision quoted, which is often called an ‘omnibus coverage’ or ‘additional assured’ provision. In O'Roak v. Lloyds Casualty Co., 285 Mass. 532, 189 N. E. 571,Guzenfield v. Liberty Mutual Ins. Co., 286 Mass. 133, 190 N. E. 23, and Moschella v. Kilderry (Mass.) 194 N. E. 728, it was settled that a statutory policy of insurance such as this must be construed broadly to effectuate the legislative purpose that automobiles actually permitted to be on the public ways be covered by indemnity insurance for the benefit of persons who may suffer personal injury through their operation; that the bailee of an automobile...