Dickson v. Economy Premier Assurance Co.

• Decision Date: 11 June 2010
• Docket Number: No. 5D09-1314.,5D09-1314.
• Citation: 36 So.3d 789
• Parties: Linda L. DICKSON, Appellant,v.ECONOMY PREMIER ASSURANCE COMPANY, Appellee.
• Court: Florida District Court of Appeals

36 So.3d 789

Linda L. DICKSON, Appellant,v.ECONOMY PREMIER ASSURANCE COMPANY, Appellee.

No. 5D09-1314.

District Court of Appeal of Florida,

Fifth District.

May 14, 2010.

Rehearing Denied June 11, 2010.

D. Paul McCaskill of Timothy H. David, P.A., The David Law Group, P.A., Maitland, for Appellant.

Michael M. Bell and Esteban F. Scornik, of Bell, Roper & Kohlmyer, P.A., Orlando, for Appellee.

LAWSON, J.

Linda Dickson appeals a final summary judgment in favor of her former insurer, Economy Premier Assurance Company (“Economy”), which declared that Economy had no duty to defend Dickson or provide coverage under the general personal liability provisions of the insurance policy that it had issued to Dickson. Dickson owned a Ford Explorer, which was also insured under a motor vehicle liability and property damage section in the same policy. After she disposed of the Explorer and her policy had expired, a subsequent owner of the vehicle was seriously injured when the Explorer's tire tread separated and caused it to roll over. The injured party sued Dickson for failing to inspect, cure and warn of the defect while she owned the Explorer. Economy defended Dickson under a reservation of rights and filed the underlying declaratory judgment action, asserting that its policy did not provide coverage because the accident did not occur within the policy period.¹ The trial court agreed and granted Economy's motion for summary judgment. Reviewing the matter de novo,² we find that the policy did provide coverage, and reverse.

The scope of insurance coverage is defined by the policy language, which is interpreted “in light of the skill and experience of ordinary people, and given [its] everyday meaning.” Campbell, 998 So.2d at 1153 (quoting Thomas v. Prudential Prop. & Cas., 673 So.2d 141, 142 (Fla. 5th DCA 1996)). Clear and unambiguous provisions, whether basic policy provisions or exclusions, should be enforced according to their terms. Id. Ambiguous provisions, or those susceptible to two reasonable interpretations-one providing coverage, the other limiting coverage-should be construed liberally in favor of coverage to the insured and strictly against the insurer. Id. Likewise, provisions limiting or excluding coverage are construed liberally in favor of the insured and strictly against the insurer. Id. Finally, courts should not construe insurance policy provisions in isolation, but instead in light of the policy as a whole, giving every provision its full meaning and operative effect. § 627.419(1), Fla. Stat. (2009); First Prof'ls Ins. Co. v. McKinney, 973 So.2d 510, 514 (Fla. 1st DCA 2007).

Dickson was sued on the theory that her negligence (during the policy period) resulted in injury to another (outside of the policy period). The portion of Economy's policy insuring Dickson against personal liability claims first extends broad coverage for personal liability in general terms, and then contains a number of divided sections dealing with specialized liability coverage, including “Motor Vehicle Liability Protection,” “Incidental Business Liability,” “Boaters Liability Protection,” and “Personal Injury Protection.”

The general liability provision “covered” Dickson for all “legal liability resulting from an occurrence in which there is actual accidental property damage, personal injury or death, anywhere in the world,” and defining “occurrence” as “an event, including continuous or repeated exposure to the same conditions, resulting in personal injury or property damage....” As Dickson argues, this general language does not require the injury to occur at the same time as the covered “occurrence” or “event” causing the injury. And, nothing in the policy's general terms limits coverage to injuries inflicted during the policy period. Cf. Discover Prop. & Cas. Ins. Co. v. Beach Cars of W. Palm Beach, Inc., 929 So.2d 729, 733 (Fla. 4th DCA 2006) (“[i]f an insurer wishes to restrict coverage for incidents or circumstances which occur during the policy period, it is free to expressly say so. If it chooses not to, and thereby creates an ambiguity, it cannot later deny coverage claiming it would be exposed to unreasonable risks and absurd results.”).

During the summary judgment hearing below, Economy admitted that the general language in its policy would afford coverage,³ but argued that another provision found in the “Personal Injury Protection” (“PIP”) section of the policy limited the coverage for automobile accidents to injuries “which occur during the policy period.” That provision reads:

The Insurance under this Section applies only to accidents which occur during the policy period:

a. in the State of Florida; and

b. as respects the named insured or a relative, while occupying the insured motor vehicle outside the State of Florida but within the United States of America, its territories or possessions or Canada; and

c. as respects to the named insured, while occupying a motor vehicle of which a relative is the owner and for which security is maintained under the Florida Motor Vehicle No Fault Law, as amended, outside the State of Florida, but within the United States of America, its territories or possessions or Canada.

We reject this argument because it is clear that this...