Clarno v. Gamble-Robinson Co., s. 29575-29586.

• Decision Date: 08 December 1933
• Docket Number: Nos. 29575-29586.,s. 29575-29586.
• Citation: 251 N.W. 268,190 Minn. 256
• Parties: CLARNO v. GAMBLE-ROBINSON CO. et al.
• Court: Minnesota Supreme Court

190 Minn. 256

251 N.W. 268

CLARNO

v.GAMBLE-ROBINSON CO. et al.

Nos. 29575-29586.

Supreme Court of Minnesota.

Dec. 8, 1933.

Appeal from District Court, Douglas County; Anton Thompson, Judge.

Action by Ralph Clarno, father and natural guardian, against the Gamble-Robinson Company and another, wherein the Continental Casualty Insurance Company and the St. Paul Mercury Indemnity Company were garnisheed. From an adverse judgment, the garnishees separately appeal.

Affirmed as to the Continental Casualty Insurance Company, and reversed as to the St. Paul Mercury Indemnity Company.

Syllabus by the Court.

1. The Reo truck temporarily used by Gamble-Robinson Company, under the circumstances shown in the opinion, is held not to come within the coverage of a liability insurance policy held by that company, covering other different trucks owned and used by it.

A special indorsement on the policy extending coverage to other automobiles thereafter ‘acquired’ by Gamble-Robinson Company, and providing that the company shall report the purchase of ‘such automobiles' to the insurer for indorsement on the policy at a pro rata premium, held, in view of the other provisions set forth in the opinion, to apply only to automobiles which the company should thereafter acquire some title to by purchase or otherwise.

2. The Reo truck which caused the accident was owned by one Robert Schmidt and was at the time used, with his permission, by the Gamble-Robinson Company. Schmidt carried insurance on the truck in the Continental Casualty Insurance Company. That policy covered the truck while used by others with the permission of the assured. It is held that it was so covered while temporarily used by Gamble-Robinson Company.

3. Gamble-Robinson Company and Robert Schmidt both used the truck for business purposes, for hauling fruits and produce by truck. The limitations in the policy held by Schmidt on the Reo truck, that it does not cover in case the truck is used for other kinds of business, do not relieve the insurer from liability. Cobb, Hoke, Benson, Krause & Faegre and Loring M. Staples, all of Minneapolis, for St. Paul Mercury Indemnity Co.

Kelly & Mangan, of Minneapolis, for Continental Casualty Ins. Co.

Dell & Dell, of Fergus Falls (Stinchfield, Mackall, Crounse, McNally & Moore, and M. D. Nicholson, all of Minneapolis, of counsel), for respondent.

OLSEN, Justice.

The St. Paul Mercury Indemnity Company and the Continental Casualty Insurance Company appeal separately from a judgment holding each of them liable as garnishees upon a judgment for $6,000 and interest and costs in favor of the plaintiff Ralph Clarno, as father of his minor child, and against the Gamble-Robinson Company.

The Gamble-Robinson Company is a wholesale dealer in fruits and produce in Minneapolis, with a branch house in Alexandria, in this state. It owns and uses certain trucks and automobiles in its business, among them a Chevrolet truck used by it at Alexandria. It carried casualty insurance on its trucks and cars in the St. Paul Mercury Indemnity Company. The defendant Robert Schmidt, located at Alexandria, operated certan trucks for carrying freight on certain truck lines out of Alexandria. He owned, among others, the Reo truck here in question. He carried casualty insurance on his trucks and cars in the Continental Casualty Insurance Company. This Reo truck was larger and heavier than the Chevrolet truck of the Gamble-Robinson Company.

About May 1, 1930, country highways over which defendant Schmidt operated his Reo truck were in such condition that the highway department ordered him not to operate such truck over some of the highways until roads became dry and suitable for use. The Gamble-Robinson Company used its Chevrolet truck for deliveries in the city of Alexandria. The order of the highway department did not prevent the use of the Reo truck in the city of Alexandria. Schmidt then arranged with the Gamble-Robinson Company for the temporary use of its lighter Chevrolet truck on the country roads until such time as the roads dried, and for the Gamble-Robinson Company to use the Reo truck on the streets of the city during that time. On May 7, 1930, an employee of Gamble-Robinson, driving defendant Schmidt's Reo truck on a street in Alexandria, collided with and injured plaintiff's minor child, for which injury plaintiff recovered judgment against Gamble-Robinson Company as hereinbefore mentioned. The two insurance companies were the garnisheed and both held liable, as stated.

1. Taking up first the appeal of the St. Paul Mercury Indemnity Company: Its policy was issued March 30, 1930. The coverage is on automobiles and trucks of which the Gamble-Robinson Company is the unconditional and sole owner. Among others, it convered the Chevrolet truck mentioned, which, at the time of the accident, was in temporary use by Schmidt. The only provision in the policy which can in any way be claimed to give coverage on the Reo truck...