Holliman v. MFA Mut. Ins. Co., 85-308
| Decision Date | 23 June 1986 |
| Docket Number | No. 85-308,85-308 |
| Citation | 711 S.W.2d 159,289 Ark. 276 |
| Parties | Farris HOLLIMAN, Appellant, v. MFA MUTUAL INSURANCE COMPANY, et al., Appellees. |
| Court | Arkansas Supreme Court |
Guy Jones, Jr., Conway, for appellant.
Matthews & Sanders by Gail O. Matthews and Marci L. Talbot, Little Rock, for appellees.
This suit involves the interpretation of a homeowner's insurance policy issued to Farris Holliman by MFA Mutual Insurance Company. Holliman sued MFA alleging coverage for an accident on his premises which occurred on August 17, 1979. Holliman's brother, Garry, was pouring gasoline in the carburetor of a 1968 Ford automobile as Farris turned on the ignition. The gasoline ignited, burning Garry. Garry sued Holliman alleging negligence. MFA had been notified of the claim against Holliman by Garry Holliman's lawyer. After an investigation, MFA declined coverage because maintenance of the vehicle was the cause of the accident. A default judgment of $25,000 was entered against Holliman on December 28, 1986. Holliman then filed this suit against MFA, using the same lawyer retained by his brother, claiming the homeowner's policy covered the accident because the vehicle was in dead storage, and, therefore, not excluded under the policy. The trial court denied a directed verdict motion by MFA and the jury returned a verdict for Holliman. The trial court granted MFA's motion for judgment notwithstanding the verdict, finding that it was a question of law whether the vehicle was in dead storage or whether it was merely broken down and awaiting repairs. The trial court held the car was not in dead storage; therefore, the accident was not covered by the policy. We affirm the trial court.
The facts in this case are essentially undisputed. Farris Holliman bought a used vehicle in March or April of 1979. He owned three vehicles and none were insured. Both he and his wife drove this particular vehicle several times on the highway to the gas station, but the vehicle was never registered or licensed. About a month before the accident, he parked the vehicle on his premises approximately 100 feet from his house because it would not start. A few days before the accident Holliman charged the battery, the tires were inflated, the radiator had water in it, and there was probably gas in the tank. The vehicle was essentially ready to drive, except it would not start. In attempting to get the car started, the fire occurred and Garry was burned.
Holliman's homeowner's policy provides:
This policy does not apply:
1. Under Coverage E--Personal Liability and Coverage F--Medical Payments to others:
a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading:
* * *
* * *
(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the resident premises if the motor vehicle is not subject to motor vehicle registration because it is used exclusively on the residence premises or kept in dead storage on the residence premises.
Holliman argues that while a homeowner's policy excludes personal injuries resulting from the use and maintenance of an automobile subject to registration, this vehicle was not being maintained but was in dead storage, and, therefore, the exclusion does not apply.
Two other states, Alabama and Florida, under strikingly similar facts, have held as a matter of law that a vehicle undergoing maintenance is not in "dead storage"; thus, personal injuries sustained while maintaining the vehicle are not covered by the homeowner's policy. In Broadway v. Great American Ins. Co., 465 So.2d 1124 (Ala.1985), the court considered an almost identical homeowner's policy which read:
1. Coverage E--Personal Liability and Coverage F--Medical Payments to Others do not apply to bodily injury or property damage: * * * *
e. Arising out of the ownership, maintenance, use, loading or unloading of:
(1) an aircraft:
(2) a motor vehicle owned or operated by or rented or loaned to any insured ...
[A] motorized land vehicle designed for travel on public roads or subject to motor vehicle registration. A motorized land vehicle in dead storage on an insured location is not a motor vehicle.
The insured purchased a used vehicle for his son. The car broke down and was towed to the insured's residence where it was moved into a shed behind the house. It was determined the vehicle needed extensive repairs including a complete...
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