Dairyland Insurance Company v. Cunningham

• Decision Date: 18 June 1973
• Docket Number: Civ. A. No. C-3885.
• Citation: 360 F. Supp. 139
• Parties: The DAIRYLAND INSURANCE COMPANY, a Wisconsin corporation, Plaintiff, v. Marguerite A. CUNNINGHAM et al., Defendants.
• Court: U.S. District Court — District of Colorado

360 F. Supp. 139

The DAIRYLAND INSURANCE COMPANY, a Wisconsin corporation, Plaintiff, v. Marguerite A. CUNNINGHAM et al., Defendants.

Civ. A. No. C-3885.

United States District Court, D. Colorado.

June 18, 1973.

Albert E. Zarlengo, Jr., Denver, Colo., for plaintiff.

Reginald D. Thomas, Colorado Springs, Colo., for defendant, Marguerite A. Cunningham.

Charles M. Dosh, of Dosh, DeMoulin, Anderson & Campbell, Denver, Colo., for defendant, Carlos Ulrich.

Ross M. Barton and Grant E. Miller, Colorado Springs, Colo., for defendant, Farmers Ins. Exchange.

MEMORANDUM OPINION AND ORDER

CHILSON, District Judge.

This is an action by the plaintiff insurance company for a declaratory judgment that it is without liability with respect to an accident in which its insured was involved on June 18, 1971, for the reason that the insured did not comply with the notice provisions of the policy.

Trial was to the Court without a jury.

From the admitted facts and some conflicting evidence, the Court finds that, prior to June 18, 1971, the plaintiff through its agent, Universal Insurance, issued its policy of insurance to the defendant, Carlos Ulrich, on a Chevelle 1966, four-door automobile; that some days before June 18, 1971, Ulrich disposed of the Chevelle automobile and acquired a 1956 GMC van; that on June 18, 1971, Ulrich was involved in an accident involving the defendant, Cunningham, who claims that she was injured as a result of being struck by the 1956 GMC van driven by Ulrich.

Prior to the accident, Ulrich had not notified the insurance carrier of his disposition of the Chevelle and the acquisition of the GMC van. Shortly after the accident and on the same date, Ulrich notified Universal by telephone of the change of vehicles, but did not inform the agency or the plaintiff that he had been involved in an accident.

In the latter part of October 1971, Mrs. Cunningham's attorney wrote Ulrich that he represented Mrs. Cunningham and suggested that his letter be turned over to Ulrich's insurance carrier. Ulrich accordingly notified Universal. This was the first notice the plaintiff had that Ulrich had been involved in an accident.

The plaintiff made no investigation of the merits of the Cunningham claim or the facts and circumstances surrounding the accident, but took the position that the notice given did not comply with the requirements of the policy and denied any coverage or any obligation to defend Ulrich in any actions resulting from the accident. In March 1972, the plaintiff instituted this declaratory judgment action.

The plaintiff takes the position that since notice was not given by the insured, "as soon as practicable", as required by the policy, all its obligations and responsibilities under the policy were thereby automatically and completely discharged.

Such is not the rule in Colorado.

In 1909, the Colorado Supreme Court in Barclay v. London Co., 46 Colo. 558, 105 P. 865, held:

"The plain and unequivocal requirements of the contract are that `upon the occurrence of an accident, and also upon receipt of notice of any claim on account of an accident, the assured shall give immediate notice in writing of such accident or claim with the fullest information available', to the defendant. These conditions are as much a part of the contract as any other portion thereof. The plaintiffs voluntarily entered into the contract, with these conditions therein, and thereby made themselves subject to such conditions. Their stipulation in regard to immediate notice was a condition with which they must comply in order to bring the

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