Ceci v. National Indem. Co.
| Decision Date | 23 March 1993 |
| Docket Number | No. 14524,14524 |
| Citation | 622 A.2d 545,225 Conn. 165 |
| Court | Connecticut Supreme Court |
| Parties | Michael CECI v. NATIONAL INDEMNITY COMPANY. |
Steven D. Jacobs, with whom, on the brief, were Richard L. Jacobs, New Haven, and Rachel M. DuFault, Law Student Intern, for appellant (plaintiff).
John W. Lemega, with whom was Daniel P. Scapellati, Hartford, for appellee (defendant).
Before PETERS, C.J., and BORDEN, BERDON, NORCOTT and KATZ, JJ.
The principal issue in this appeal is whether, under the facts of this case, the plaintiff is entitled to underinsured motorist benefits, as a "family member" of the insured, pursuant to the business automobile insurance policy issued by the defendant to the plaintiff's corporate employer. 1 The plaintiff, Michael Ceci, having sustained injuries as a pedestrian when he was struck by an underinsured motorist, sought to recover underinsured motorist benefits under a business automobile insurance policy issued by the defendant, National Indemnity Company, to Victor Ceci Refuse, Inc., a corporation operated by the plaintiff's family. Following the trial court's decision confirming an arbitration award rendered in favor of the defendant, the plaintiff appealed to the Appellate Court, which affirmed the judgment of the trial court and concluded that because the policy issued to his family's corporation was unambiguous, the plaintiff was not covered by it. Ceci v. National Indemnity Co., 26 Conn.App. 661, 603 A.2d 412 (1992). We granted the plaintiff's petition for certification to appeal 2 and now reverse the judgment of the Appellate Court.
The Appellate Court opinion sets forth the following undisputed facts. "On September 13, 1986, the plaintiff was a pedestrian when he was struck by an underinsured motorist. He requested uninsured motorist benefits pursuant to a business automobile policy of insurance issued by the defendant to Victor Ceci Refuse, Inc. The policy was effective from July 15, 1986, through July 15, 1987, and covered three pickup trucks and two trucks owned by the corporation. The policy identified Victor Ceci Refuse, Inc., as the 'named insured' and did not identify any individual officers or employees. The policy classified the insured's business as a corporation.
"At issue in this case are the provisions of the insurance policy that dealt with uninsured motorist coverage. According to these provisions, the defendant would pay for damages caused by an uninsured vehicle. Individuals covered by this provision included: '(1) you or any family member (2) anyone else occupying a covered auto or a temporary substitute for covered auto.' The policy defined ' "Family member" ' as 'a person related to you by blood, marriage or adoption who is a resident of your household, including a ward or foster child.' The policy defined 'occupying' as 'in, upon, getting in, on or off.'
Ceci v. National Indemnity Co., supra, at 662-63, 603 A.2d 412.
The Appellate Court agreed with the defendant that "[b]ecause it is clear that the plaintiff could not be related to the corporation, there was no ambiguity that would entitle him to coverage based on the presumption favoring an insured where an insurance policy is ambiguous." Id., at 665, 603 A.2d 412. The Appellate Court accepted the defendant's argument that a plain reading of the entire policy leads to the conclusion that a corporation could not have family members related by blood, marriage or adoption, and concluded that no reasonable interpretation of the family member provision would entitle the plaintiff to recover under this policy. Id., at 665-66, 603 A.2d 412. We disagree. 3
The provisions of the policy issued by the defendant cannot be construed in a vacuum. Chmielewski v. Aetna Casualty & Surety Co., 218 Conn. 646, 670, 591 A.2d 101 (1991). They should be construed from the perspective of a reasonable layperson in the position of the purchaser of the policy. Travelers Ins. Co. v. Kulla, 216 Conn. 390, 402, 579 A.2d 525 (1990); Allstate Ins. Co. v. Ferrante, 201 Conn. 478, 487, 518 A.2d 373 (1986); Cody v. Remington Electric Shavers, 179 Conn. 494, 497, 427 A.2d 810 (1980). This analysis is necessarily fact oriented and is not based solely upon general propositions. A determination of the meaning of the term "family member" in the context of the National Indemnity policy requires careful consideration of the " 'situation [of the parties] to that policy and the circumstances connected with the transaction.' " Leonard Concrete Pipe Co. v. C.W. Blakeslee & Sons, Inc., 178 Conn. 594, 598, 424 A.2d 277 (1979), quoting Ives v. Willimantic, 121 Conn. 408, 411, 185 A. 427 (1936).
This policy was prepared for the defendant by underwriter Nancy Belliveau, who used only one underinsured motorist coverage endorsement in all automobile liability policies: the one appended to the Victor Ceci Refuse, Inc., policy. Belliveau had considerable information about the insured when she prepared the policy. Belliveau knew that Victor Ceci Refuse, Inc., was a small, family operated business, and that the plaintiff is the brother of Victor Ceci, the corporation's sole shareholder. The plaintiff was an employee of the insured corporation and was listed as one of the three drivers on the schedule of drivers section of the application submitted to the defendant. The other drivers were family members Victor Ceci and Louis Ceci, who ran the business. Victor Ceci advised Belliveau that the drivers of the vehicles were not covered by the Workers' Compensation Act because the business was owner operated. 4 She knew that the five named vehicles were kept at 4 Seitz Lane, Cos Cob, which is where the business was located and where the plaintiff resided with Victor and Louis Ceci, another brother, a sister and their mother. Consequently, the policy endorsement had not been prepared in a vacuum. It is undisputed that Victor Ceci Refuse, Inc., was a small family owned and family operated business. It is with regard to these particular facts that we construe the policy.
The policy in effect at the time of the plaintiff's accident provided the following:
"PART I--WORDS AND PHRASES WITH SPECIAL MEANING--READ THEM CAREFULLY
. . . . .
The uninsured motorists insurance endorsement to the policy provided the following:
According to well established principles governing the construction of insurance policies, an ambiguous provision in an insurance policy will be construed to favor the insured. S & S Tobacco & Candy Co. v. Greater New York Mutual Ins. Co., 224 Conn. 313, 320, 617 A.2d 1388 (1992); Streitweiser v. Middlesex Mutual Assurance Co., 219 Conn. 371, 375, 593 A.2d 498 (1991); Schultz v. Hartford Fire Ins. Co., 213 Conn. 696, 702, 569 A.2d 1131 (1990); Beach v. Middlesex Mutual Assurance Co., 205 Conn. 246, 250, 532 A.2d 1297 (1987). The plaintiff contends that the term "family members" is ambiguous in the circumstances of this case because it is unclear what meaning should be attributed to the inclusion of a "family member" limitation in an uninsured motorists endorsement attached to a business policy issued to a corporation. Specifically, the plaintiff argues that the language in the endorsement reflects coverage to natural persons and their families, unlike the liability portion of the policy that involves only the named insured corporation.
The defendant, on the other hand, maintains that the language in the policy is clear and unambiguous because a corporation cannot have "family members." Because it is a distinct legal entity, a corporation can act only through its agents. Lieberman v. Reliable Refuse Co., 212 Conn. 661, 673, 563 A.2d 1013 (1989). Even though the plaintiff is the brother of the corporation's sole stockholder, he cannot be related to the corporation. The defendant contends, therefore, that the language concerning family members in a policy issued to a corporation is merely superfluous and does not serve to undermine the clarity of the policy.
Before we can construe the terms of the policy in the plaintiff's favor as he suggests, we must...
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