Grange Ins. Ass'n v. Eschback, 30--40206--1

• Decision Date: 03 November 1969
• Docket Number: No. 30--40206--1,30--40206--1
• Citation: 1 Wn.App. 230,460 P.2d 690
• Court: Washington Court of Appeals
• Parties: GRANGE INSURANCE ASSOCIATION, Respondent, v. Carl L. ESCHBACK; Vincent Mann; Stephen Feathers by his quardian ad litem Betty Feathers, and General Insurance Company, Respondents, Cascade Insurance Company, a member of United Insurance Group, Appellant, Richard Roddel, Respondent.

Page 230

1 Wn.App. 230

460 P.2d 690

GRANGE INSURANCE ASSOCIATION, Respondent, v. Carl L. ESCHBACK; Vincent Mann; Stephen Feathers by his quardian ad litem Betty Feathers, and General Insurance Company, Respondents Cascade Insurance Company, a member of United Insurance Group, Appellant Richard Roddel, Respondent.

No. 30--40206--1.

Court of Appeals of Washington, Division 1, Panel Two.

Nov. 3, 1969.

Russell Millhouse, Millhouse & Nelle, Bellingham, for appellant.

Sam Peach, Bellingham, for respondent.

HOROWITZ, Acting Chief Judge.

We are basically concerned with the construction and application of an omnibus clause contained in a public liability policy issued by the plaintiff Grange Insurance Association to the defendant Carl L. Eschback. Defendant Cascade Insurance Company principally contends that the omnibus clause contained in the Grange policy covers the driver of the truck involved in an accident so that the defendant insurer has no liability under the policy issued by it. From a declaratory judgment rejecting the contentions of the defendant insurer, defendant insurer appeals. For reasons next discussed, we would affirm.

For convenience, we shall refer to Grange Insurance Association as 'Grange'; Cascade Insurance Company as 'Cascade'; and the individual defendants by their respective surnames.

On October 29, 1964, Mann, related by marriage to Eschback, borrowed Eschback's truck to gather up cardboard boxes for a football rally at Ferndale High School where he was attending. The court found that this actual use was unknown to Eschback, and that 'Carl Eschback never granted unrestricted use to his nephew Vincent Mann, and he understood he was to be the sole operator. Past use of the vehicle of Vincent Mann was for personal family use.'

The findings do not define 'unrestricted use' but the court's oral opinion (to which we resort to the extent consistent with the findings (Ferree v. Doric Co., 62 Wash.2d 561, 383 P.2d 900 (1963))) states:

He (Eschback) did know that it was to be used to haul some stuff to school * * * that Mann was going to use this to haul some project, school project of his and deliver it to school.

That Eschback never granted unrestricted use of the truck to Mann is supported by evidence that Eschback requested Mann to have the truck home before dark; that Mann didn't say from where the material was to be hauled to school but that Eschback took it for granted that the hauling was from Mann's home to school; that had he known that the truck was to be used for the actual proposed use, he would not have given his consent.

The court further found that Mann reluctantly permitted Richard Roddel, 15 years of age and without a driver's license, to drive the truck, then in the course of its fifth or sixth trip, to pick up boxes for the bonfire and then to drive the truck back to school; that Mann sat in the front seat while Roddel drove; that while Roddel was driving the truck the truck injured Feathers, a minor, who was then driving a car insured by Cascade. The court held that the Grange policy did not insure Roddel and that, accordingly, Cascade was liable under its policy to arbitrate the damage claim of Feathers.

In determining whether the omnibus clause in the Grange policy covers Roddel, the controlling question is whether Roddel at the time of the accident was engaged in 'the actual use of the automobile * * * with the permission of * * *' Eschback.

The clause imposing liability contained in Cascade's policy provides:

Cascade will pay all sums which the insured * * * shall be legally entitled to recover * * * from the owner or operator of an Uninsured automobile because of bodily injury sustained by the insured, caused by accident and arising out of the * * * use of such uninsured automobile; provided, * * * determination as to whether the insured or such representative is legally entitled to recover such damages, and if so the amount thereof, shall be made by agreement between the insured or such representative and Cascade or, if they fail to agree, by arbitration.

(Italics ours.)

The omnibus clause contained in the Grange policy provides:

'insured' includes the named insured * * * and * * * any person while using the automobile and any person * * * legally responsible for the use thereof, provided the actual use of the automobile is by the named insured * * * or with the Permission of * * *

the named insured. (Italics ours.) In order to determine whether the Eschback truck was an 'uninsured automobile' within the meaning of the uninsured automobile clause contained in Cascade's policy, it is necessary to determine whether Roddel drove the truck 'with the permission of' Eschback as that term is used in the omnibus clause of the Grange policy. We must answer three principal questions: (1) What use of the truck was permitted to Mann by Eschback? (2) Was the truck at the time of the accident being put to the permitted use? (3) Did Eschback permit Mann to delegate the actual operation of the truck to Roddel?

That the answers to these questions are necessary becomes apparent from a consideration of six classes of cases, each class finding illustration in Washington decisions, some of which may fall in more than one class.

1. Liability is imposed on insurer because the named insured has expressly or impliedly permitted the use. Safeco Ins. Co. v. Pac. Indemn. Co., 66 Wash.2d 38, 401 P.2d 205 (1965); Thompson v. Ezzell, 61 Wash.2d 685, 379 P.2d 983 (1963) (minor deviation of permitted use).

2. Liability is not imposed on the insurer because the named insured has not expressly or impliedly permitted the use. Eshelman v. Grange Ins. Ass'n, 74 W.D.2d 65, 442 P.2d 964 (1968) (employee; rule recognized); McKee v. Garrison, 37 Wash.2d 37, 221 P.2d 514 (1950); Yurick v. McElroy, 32 Wash.2d 511, 202 P.2d 464 (1949); Hinton v. Carmody, 186 Wash. 242, 57 P.2d 1240 (1936); Cypert v. Roberts, 169 Wash. 33, 13 P.2d 55 (1932).

3. Liability is not imposed on the insurer because of major deviation from the express or implied use permitted by the named insured. Foote v. Grant, 56 Wash.2d 630, 354 P.2d 893 (1960) (employee); Foote v. Grant, 55 Wash.2d 797, 350 P.2d 870 (1960) (employee).

4. Liability is imposed on the insurer notwithstanding a minor deviation from express or implied use permitted by the named insured. Western Pac. Ins. Co. v. Farmers Ins. Exch., 69 Wash.2d 11, 416 P.2d 468 (1966); Wallin v. Knudtson, 46 Wash.2d 80, 278 P.2d 344 (1955).

5. Liability is not imposed on the insurer because the named insured has given no express or implied permission to first permittee to delegate operation to second permittee. Hunton v. McCarvel, 65 Wash.2d 242, 396 P.2d 639 (1964) (family car); Hamm v. Camerota, 48 Wash.2d 34, 290 P.2d 713 (1955); Holthe v. Iskowitz, 31 Wash.2d 533, 197 P.2d 999 (1948); Collins v. Northwest Cas. Co., 180 Wash. 347, 39 P.2d 986, 97 A.L.R. 1235 (1935).

6. Liability is imposed on insurer because the named insured has given express or implied permission to first permittee to delegate operation to second permittee. Employers Mut. Liab. Ins. Co. v. Zurick Ins. Co., 67 Wash.2d 568, 409 P.2d 165 (1965); Wood v. Kok, 58 Wash.2d 12, 360 P.2d 576 (1961); Odden v. Union Indem. Co., 156 Wash. 10, 286 P. 59, 72 A.L.R. 1363 (1930). ¹

Answering the three basic questions:

1. Eschback permitted Mann to use the truck to haul...