Farm Bureau Mut. Ins. Co. of Idaho v. Hmelevsky

• Decision Date: 08 August 1975
• Docket Number: No. 11483,11483
• Citation: Farm Bureau Mut. Ins. Co. of Idaho v. Hmelevsky, 97 Idaho 46, 539 P.2d 598 (Idaho 1975)
• Parties: FARM BUREAU MUTUAL INSURANCE COMPANY OF IDAHO, Plaintiff-Respondent, v. Michelle HMELEVSKY, by and through her quardian ad litem, Mildred Ridgeway, and Mildred Ridgeway, Defendants-Appellants, v. James H. COUCH, Jr., et al., Defendants, v. FARMERS INSURANCE COMPANY OF IDAHO, an Idaho Corporation, Defendant-Respondent.
• Court: Idaho Supreme Court

Page 598

539 P.2d 598

97 Idaho 46

FARM BUREAU MUTUAL INSURANCE COMPANY OF IDAHO, Plaintiff-Respondent, v. Michelle HMELEVSKY, by and through her quardian ad litem, Mildred Ridgeway, and Mildred Ridgeway, Defendants-Appellants, v. James H. COUCH, Jr., et al., Defendants, v. FARMERS INSURANCE COMPANY OF IDAHO, an Idaho Corporation, Defendant-Respondent.

No. 11483.

Supreme Court of Idaho.

Aug. 8, 1975.

J. D. Sudweeks, James J. May, May, May, Sudweeks & Fuller, Twin Falls, for defendants-appellants.

John A. Doerr, Doerr & Reed, Twin Falls, for Farm Bureau Mut. Ins. Co. of Idaho.

Bert Larson, Parry, Robertson, Daly & Larson, Twin Falls, for Farmers Ins. Co. of Idaho.

Lloyd J. Walker, Walker & Kennedy, Twin Falls for Couch and Jensens.

SHEPARD, Justice.

This is an appeal from a judgment entered following trial in an action for declaratory judgment. Plaintiff-respondent Farm Bureau brought the action seeking a declaratory judgment as to its liability under a policy of automobile insurance, and Farmers Insurance Company intervened in the action seeking similar relief. The trial court entered judgment in favor of both insurance carriers, holding neither was liable under their policies. We reverse.

On June 27, 1971 an automobile owned by Leon and Fay Wright was involved in a single vehicle accident. The driver of the vehicle at the time of the accident was one James Couch. Leona Wright, a minor child, is the daughter of Leon and Fay Wright and the family reside outside Twin Falls, Idaho. Prior to the date of the accident, the minor child, Leona, had permission to drive both the car in question and a pickup truck, also owned by the Wrights. Depositions which were taken in another case which will be discussed infra were used at the trial in the instant case along with the testimony of witnesses. In the course thereof, the Wrights heatedly assert that they gave permission to their daughter only to use the automobile for specific purposes to travel to and from specific places. They also assert that she was specifically forbidden to allow any other person to drive the vehicle.

We recite the following facts in detail only because they are necessary to the context of our decision. On the day of the accident Leona was absent from the Wright home when Leon and Fay Wright decided to leave. They left a note for Leona, giving her permission to drive the car to the home of an aunt about one and one-half mile distant from the Wright home and the keys were left in the car. Leona arrived home but instead of going to the aunt's home she first went to church and thereafter purchased some beer and picked up three friends, James Couch, appellant Michelle Hmelevsky, and John Jensen. Thereafter certain drugs were purchased and then the group drove in the Wright car to the area of Stanley, Idaho. After spending some time there they started the trip home. At some point, which is not specified, Leona Wright allowed James Couch to drive the vehicle. While Couch was driving on the return trip home the accident took place and all four occupants of the vehicle were injured.

In separate actions filed in October and November 1972 Hmelevsky and Jensen brought action against the Wrights and Couch for the injuries suffered in that accident. Thereafter Farm Bureau, who is the insurer of Leon and Fay Wright, brought the instant action for declaratory judgment as to its liability, and Farmers Insurance Company, who is the alleged insurer of Couch, was allowed to intervene and to obtain a determination as to its liability. Leon and Fay Wright are not parties to the instant action.

The Farm Bureau policy insuring the Wrights' automobiles provides for coverage if a driver other than the Wrights was operating the vehicle 'with the permission of either (of the Wrights) and within the scope of such permission.' The Farmers Insurance policy provides coverage for Couch if he was driving the Wright car 'with the permission of the owner,' (in this case the Wrights).

Following trial, the district court found that the Wrights had not given permission for Couch to drive their vehicle nor did they consent to Leona permitting Couch to drive. Thus it found that neither of the policies were applicable nor provided coverage. It declared that neither company was obligated to provide coverage for or to defend Couch in either of the personal injury cases. It also declared that the Farmers' policy was excess over any coverage provided by Farm Bureau as to liability arising out of the accident. Hmelevsky takes this appeal from the judgment and we reverse.

At the outset we note that an insurance company may adjudicate its liability under a policy prior to a trial of a personal injury action and therefore declaratory judgment was properly sought here. Temperance Insurance Exchange v. Carver, 83 Idaho 487, 365 P.2d 824 (1961); I.R.C.P. 57; I.C. § 10-1201; Occidental Fire and Casualty Company v. Cook, 92 Idaho 7, 435 P.2d 364 (1967). See also State Farm Mutual Automobile Ins. Co. v. Jacober, 10 Cal.3d 193, 110 Cal.Rptr. 1, 514 P.2d 953 (1973).

The trial court found that since Leona Wright had made use of the vehicle on numerous previous occasions with her parents' consent, she had general permission to use the car. The trial court also found, however, that Leona did not have her parents' permission for the precise use she made of the car on the day in question. It is clear that Leona had specific permission to use the car for a limited purpose on the day of the accident. The trial court also found that on three occasions prior to the day in question Leona Wright had allowed other persons to drive family vehicles, but that neither Leon nor Fay Wright were aware of other persons being permitted to drive the vehicles. The court further found that neither Leon nor Fay Wright knew or were acquainted with Couch or John Jensen and had given neither of them permission to drive the vehicle involved in the accident. Although we might view the evidence differently, the trial court found that neither Leon nor Fay Wright were aware of Leona's using the family vehicle to travel to a destination other than to which she was given specific permission to go. The scene of the accident was approximately 150 miles from the Wright residence.

The trial court concluded as matters of law that Leona did not have permission either express or implied to use the family vehicle to travel to the area where the accident occurred, nor did she have either express or implied permission to allow Couch to drive the vehicle, nor did Couch have the implied permission of the Wrights to drive the vehicle.

I.C. § 49-1521(b) is part of the motor vehicle safety responsibility act and provides that a vehicle owner's policy 'shall insure the person named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured.' Policies such as that issued by both Farm Bureau and Farmers are subject to the requirement. I.C. § 49-1521. Motor vehicle insurance policies must be construed in conformance with the mandate of that act. Farmers Insurance Exchange v. Wendler, 84 Idaho 114, 368 P.2d 933 (1962). The stated policy and purpose of that safety responsibility act 'is to protect the public against irresponsible drivers.' Farmers Exchange, supra, 84 Idaho at 119, 368 P.2d at 935.

The principal point of decision herein is the effect of granting Leona Wright general permission to use the vehicle and specific permission to use the vehicle for a limited purpose on the day of the accident in view of Leona's deviation from the specific use permission and her deviation in permitting Couch to drive the vehicle. In similar cases nationally, a multitude of decisions have produced widely divergent results.

Three differing rules have been adopted as set forth in Ryan v. Western Pacific Insurance Company, 242 Or. 84, 408 P.2d 84 (1965).

'These have been catalogued as falling into one of three rules: (1) The 'strict' or 'conversion' rule, i. e., any deviation from the scope of the permission given ends coverage; (2) The 'minor deviation' rule, i. e., a minor deviation from the scope of the initial permission does not end coverage, but a major deviation does; and (3) The 'liberal' or 'initial permission' rule, i. e., the permittee is covered although the use is beyond the scope of the initial permission unless the use so far exceeds the initial permission that the permittee is akin to a thief or converter.' 408 P.2d at 86.

See also 7 Am.Jur.2d Automobile Insurance, § 119 et seq. See also American Fidelity Co. v. North British & Mer. Inc. Co., 124 Vt. 271, 204 A.2d 110 (1969), which along with Ryan appears to have adopted still another approach which could perhaps be labeled 'the major deviation' rule.

This court has not as yet had the occasion to adopt any of the above rules and although the respective parties urge us to adopt one of the above differing rules, we believe none can be adopted for universal application in this state. It is our opinion that all of the above rules tend to ignore those differences which are inherent in a family situation as contrasted with other circumstances. Many cases interpreting deviation from an express permission do so in a context involving employer-employee relationships or other differing from family circumstances. We believe they are thus distinguishable in that what night be appropriate in a business context is not practical or proper in a parent-child context.

The intra-family relationship is unique in the law, albeit this court and others have made inroads as to the law governing that relationship. See Rogers v. Yellowstone, 97 Idaho 14, 539 P.2d 566 (1975); and particularly Hebel v. Hebel, 435 P.2d 8 (Alaska 1967), allowing tort action to be brought against a parent by a child. Human experience teaches that when parents allow a child to drive a family car with general permission on an at...