Employers Mut. Liability Ins. Co. of Wis. v. Eagles Lodge of Hallock, Minn.

• Decision Date: 28 February 1969
• Docket Number: No. 41170,41170
• Citation: 282 Minn. 477,165 N.W.2d 554
• Parties: EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY OF WISCONSIN, Appellant, v. EAGLES LODGE OF HALLOCK, MINN., Defendant, and Continental Casualty Company of Chicago, Ill., garnishee, Respondent.
• Court: Minnesota Supreme Court

Page 554

165 N.W.2d 554

282 Minn. 477

EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY OF WISCONSIN Appellant, v. EAGLES LODGE OF HALLOCK, MINN., Defendant and Continental Casualty Company of Chicago, Ill., garnishee Respondent.

No. 41170.

Supreme Court of Minnesota.

Feb. 28, 1969.

Syllabus by the Court

In the interpretation of insurance contracts, as with other contracts, we start with the principles that parties are fairly to contract as they see fit and that the language of the contract is to be given its plain and ordinary meaning. It is equally true, however, that the terms of a contract must be read in the context of the entire contract and will not be so strictly construed as to lead to a harsh and absurd result. Held, under the record here, the decedent, being a policeman within the exclusionary clause of defendant's policy, was excluded from coverage.

Curtis L. Charlson, Thief River Falls, for appellant.

Saetre, Myhre & Huddleson, Warren, for respondent.

Heard before KNUTSON, C.J., and NELSON, ROGOSHESKE, SHERAN, and FRANK T. GALLAGHER, JJ.

OPINION

FRANK T. GALLAGHER, Justice.

This is an appeal from a judgment of the district court dismissing a garnishment action by plaintiff, Employers Mutual Liability Insurance Company of Wisconsin, against Continental Casualty Company of Chicago (Continental).

The case was submitted to the trial court on stipulated facts which were substantially as follows: The Eagles Lodge of Hallock, Minnesota (Lodge), sponsored, promoted, and conducted an automobile race at the Kittson County Fair Grounds on July 11, 1959, for the purpose of raising money. The fairgrounds are within the corporate limits of the village of Hallock. Deo C. Waldron in his official capacity as police chief of the village was present on the fairgrounds for the purpose of supervising parking, patrolling the racetrack to keep spectators off, and maintaining the order and safety of those present. Waldron had been similarly engaged on previous occasions when the Lodge had held such races. His presence had not been requested by the Lodge. His only compensation was that paid him by the village, and the only services he rendered to the Lodge were those common to the general public.

At about 9:30 p.m., during the course of the last race, there was a pileup of cars at the north curve of the track near a point where there is an open fence through which cars get into and out of the track area. Following the pileup, several cars from outside the track area began moving toward the north curve. Waldron drove his police car to this point to direct traffic and prevent unauthorized persons from entering the track area. After Waldron left his car, and while he was engaged in controlling the persons near the open fence, there was another accident on the track. One of the cars involved went over the embankment at the north curve, eventually striking Waldron. He sustained injuries which resulted in his death.

Plaintiff is the workmen's compensation insurer for the village of Hallock. It paid Waldron's burial expenses and is paying weekly compensation to his dependents. In July 1962 plaintiff commenced a third-party action, as subrogee of Waldron's next of kin, against the Lodge. The latter had given timely notice of the accident to its insurer, Continental, and tendered the summons and complaint to it immediately after service. Continental, which had issued a special events liability insurance policy to the Lodge, denied coverage and refused to defend the suit, basing its refusal on one of the exclusionary provisions of the policy. The provision reads:

'This policy does not apply:

'(a) to injury to or death of participants, pit attendants, stewards, car owners, mechanics, flagmen, policemen and other officials and all persons employed on or about the premises.'

The Lodge submitted no answer. After hearing the evidence offered by plaintiff, the district court on April 24, 1963, granted a default judgment against the Lodge in the amount of $25,018.

Following entry of the default judgment, plaintiff commenced the present garnishment action against Continental to recover the...