Home Indem. Co. v. Humble Oil & Refining Co., 15386
| Decision Date | 20 June 1958 |
| Docket Number | No. 15386,15386 |
| Court | Texas Court of Appeals |
| Parties | The HOME INDEMNITY COMPANY, Appellant, v. HUMBLE OIL & REFINING COMPANY, Appellee. |
Strasburger, Price, Kelton, Miller & Martin, Hobert Price, Dallas, for appellant.
Kenneth C. Minter and Felix A. Raymer, Houston, for appellee.
This suit involves the liability as between the parties hereto, of appellee, a self-insurer under The Texas Motor Vehicle Safety-Responsibility Law (Art. 6701h, Secs. 18(4), 21(b)2, Vernon's Ann.Civ.St., Acts 1951, 52nd Leg., p. 1220, Chap. 498) following accidental injures and property damage sustained by Mrs. Tennie Reed at Overton on March 8, 1956 and caused by D. O. Cole, a Humble employee, while driving a Company-owned car. Plaintiff Insurance Company has brought suit seeking to charge defendant Oil Company with entire responsibility for the amount paid in settlement of claim; and has appealed from the adverse judgment rendered after hearing to the trial court.
The case is here on an agreed statement of facts; in substance as follows: Appellant is an Insurance Company, writing policies of public liability insurance on automobiles on a commercial basis for stipulated premiums; and appellee an integrated Oil Company, chartered under the Texas Business Corporation Act, with many hundreds of automobiles operating on the highways of both Texas and New Mexico. Upon passage of above Act appellee qualified as a 'self-insurer' (Sec. 34 and as a prerequisite to so qualifying, Humble agreed with the State of Texas that (Sec. 18) with respect to accidents occurring while the Certificate of Self-Insurance was in force it 'will pay the same judgments and in the same amounts that the insurer would be obligated to pay under an owner's motor vehicle liability policy if it had issued such policy to said self-insurer.'
Appellee had in its employ one D. O. Cole to whom it had assigned one of its automobiles for his use in the discharge of Company business; Cole also personally owning a car. On this personal car he had obtained a policy of public liability insurance from appellant, with a Form 80 Endorsement attached thereto. This Form 80 Endorsement is the one commonly referred to in the insurance business as the 'Use of Other Cars', by terms of which Cole was fully covered with liability insurance while driving any other car, to the same extent as the coverage afforded when driving his own personal car, with this exception: The insurance coverage afforded by the Form 80 Endorsement was 'excess' coverage; that is to say, when Cole was driving any other car than his own personal car, appellant was liable only for such damages as might be assessed against Cole which were not covered by 'Other Valid and Collectible Insurance.'
D. O. Cole became involved in a collision while driving the Company car, assigned to him by appellee as stated for his use in the discharge of Company business. The collision was due to the admitted negligence of Cole; resulting in material property damage and some personal injury for which he became admittedly liable to the injured party. The accident occurred, however, at a time when Cole was engaged upon a personal mission, wholly independent of the performance of any duties for his employer, Humble.
Mrs. Reed making claim against Cole for the damages sustained, he in turn notified plaintiff Insurance Company of such claim, as required by his personal policy of insurance. Plaintiff, taking the position that Humble's Certificate of Self-Insurance constituted 'Other and Valid Collectible Insurance', then demanded of Humble that it assume all liability for the damages sustained by the injured party, Humble refusing. Pending dispute between appellant and appellee as to liability, Mrs. Reed agreed to accept a sum of money ($8,400, of which $5,000 was for property damage and $3,400 for personal injuries) which appellant deemed it advantageous to pay; thus eliminating any dispute with said claimant. Appellee concurring in this, an agreement was worked out under terms of which appellant and appellee contributed equally toward such settlement; but reserving the right to litigate as beteeen themselves the matter of liability. This suit resulted, plaintiff seeking a return of the $4,200 paid in the settlement, together with a finding that defendant was wholly liable to the injured party; defendant praying that plaintiff take nothing and in cross-action for return of the $4,200 contributed by it to aforesaid settlement. As both parties agree, this as a case of first impression.
The Texas Motor Vehicle Saftey-Responsibility law (Art. 6701h) in part caption recites: 'An Act to encourage safer use of motor vehicles on the streets and highways of Texas and to deny the privilege of driving to reckless and financially irresponsible persons by requiring security of owners and operators of motor vehicles following accidents and by providing for proof of financial responsibility for the future.' Sections 4 and 5 set forth procedures to be taken by the Department of Public Safety relative to owners and operators of motor vehicles who may become involved in such an accident in which any person is killed or injured, or in which damage to the property of any one person in excess of $100 is sustained; a failure in the respects mentioned resulting in suspension of driver's license of operator and loss of registration certificate of the vehicle itself. These penalties may be avoided (Sec. 5(c)) 'to such operator or owner if such owner had in effect at the time of such accident a motor vehicle liability policy with respect to the motor vehicle involved in such accident * * *;' or 'qualifying as a self-insurer under Section 34 of this Act, * * *.' The latter section, paragraph (a) provides that 'Any person in whose name more than 25 motor vehicles are registered may qualify as a self-insurer by obtaining a certificate of self-insurance issued by the Department * * *.' Section 18, subdv. 4, provides in part that a certificate of self-insurance shall be supplemented 'by an agreement by the self-insurer that, with respect to accidents occurring while the certificate is in force, he will pay the same judgments and in the same amounts that an insurer would have been obligated to pay under an owner's motor vehicle liability policy if it had issued such a policy to said selfinsurer.' Section 21 provides in part: ...
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