Ligo v. Continental Casualty Company

• Decision Date: 17 February 1972
• Docket Number: Civ. A. No. 70-1291.
• Citation: 338 F. Supp. 519
• Parties: Julia G. LIGO, Administratrix of the Estate of J. Edwin Ligo, Deceased, Plaintiff, v. CONTINENTAL CASUALTY COMPANY, Defendant.
• Court: U.S. District Court — Eastern District of Pennsylvania

338 F. Supp. 519

Julia G. LIGO, Administratrix of the Estate of J. Edwin Ligo, Deceased, Plaintiff, v. CONTINENTAL CASUALTY COMPANY, Defendant.

Civ. A. No. 70-1291.

United States District Court, W. D. Pennsylvania.

February 17, 1972.

William J. Joyce, of Cusick, Madden, Joyce & McKay, Sharon, Pa., for plaintiff.

David J. Armstrong, of Dickie, McCamey & Chilcote, Pittsburgh, Pa., for defendant.

FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER OF COURT

MARSH, Chief Judge.

In this action, the Administratrix of the Estate of J. Edwin Ligo, deceased, seeks to recover $50,000 pursuant to a special hazards group life insurance policy issued to the McDowell National Bank of Sharon, Pennsylvania, by Continental Casualty Company, the defendant. The policy insured the lives of employees and officers of the bank against certain risks and travel while on the business of the bank. After non-jury trial, the court makes the following:

FINDINGS OF FACT

1. The special hazards group life insurance policy issued by the defendant to the McDowell National Bank of Sharon insured the lives of "ALL ACTIVE, FULL-TIME OFFICERS, MANAGERS, AND OTHER EMPLOYEES OF THE HOLDER BANK, BETWEEN THE AGES OF 18 AND 69 * * *." Officers and managers were designated in the policy as Class I Insured Persons, and other employees as Class II Insured Persons.

2. The policy was issued on December 22, 1969, and was in full force and effect on June 16, 1970.

3. The sum payable under the policy upon the death of a Class I Insured Person was $50,000, and the sum payable upon the death of other employees was $10,000.

4. J. Edwin Ligo was appointed loan officer by the Board of Directors of the McDowell National Bank of Sharon on December 9, 1969, and continued in that position until his death on June 16, 1970.

5. On June 16, 1970, J. Edwin Ligo was an active, full-time loan officer. His normal working hours were from 9:00 a. m. to 4:30 p. m., Monday through Friday, and from 9:00 a. m. to 12:00 noon on Saturday.

6. On December 9, 1969, there were 23 officers of the bank, including J. Edwin Ligo, and there were the same number on December 22, 1969, the date the policy was issued.

7. The policy was written on a blanket basis with the premium based on 23 officers and managers and 35 other employees.

8. The place of regular work or employment of Ligo at all times material to this action was the main office of the bank in Sharon, Pennsylvania.

9. The policy described the hazards insured against as follows:

"The hazards against which insurance is provided under this policy are, provided such hazards arise while the Insured Person is on the business of the Holder, injuries sustained in consequence of and during the course of any trip made by the Insured Person (excluding everyday travel to and from work and bona fide vacations).

"Such trip shall be deemed to have commenced when the Insured Person leaves his residence or place of regular employment for the purpose of going on such trip, whichever last occurs, and shall continue until such time as he returns to his residence or place of regular employment, whichever first occurs.

"* * *

"The term `on the business of the Holder' as used in this policy, means any trip authorized by or at the direction of the Holder for the purpose of furthering the business of the Holder."

10. At all times material to this action, the main office of the McDowell National Bank of Sharon was located at Chestnut and State Streets in Sharon, Pennsylvania. The bank maintains branch offices at various locations including one in the Borough of Mercer, Pennsylvania, and two in Hickory Township in Mercer County, one known as the Shenango Valley Mall office and the other known as the Hickory Plaza office.

11. In September or October of 1969, it was important that bank deposit slips, withdrawal slips, mortgage applications, and other bank memoranda at the Shenango Valley Mall Office be delivered daily to the main office of the bank in Sharon, Pennsylvania. It was important that similar bank items be picked up from the Mercer branch bank once or twice a week and from the Hickory Plaza branch office about once a week and delivered to the main bank in Sharon. The messenger service was of importance to the bank since the branch banks had no bookkeeping departments, and it was necessary that deposit slips be delivered to the main office promptly in order that deposits could be credited to customers' accounts.

12. In September or October of 1969, Edward Skriner, Vice President and Cashier of the McDowell National Bank, requested Ligo to stop each morning at the Shenango Valley Mall office, and to stop at the Mercer branch and the Hickory Plaza branch when requested to do so, and pick up the aforesaid bank items and deliver same to the main bank in Sharon before performing his duties as an employee in the mortgage department at the main bank.

13. Skriner expected Ligo to use his own automobile and authorized him to charge the mileage each day from Mercer to Sharon at the rate of 10 cents per mile. Ligo was not to be paid any additional salary or other compensation for this service.

14. Ligo performed the messenger service requested by Skriner from about October of 1969 to June 16, 1970, when he was killed in an automobile accident.

15. In rendering this service, Ligo used a canvas mail bag on which the name "McDowell National Bank of Sharon, Pa." appeared. He took this bag home with him each evening. When he left his residence in the morning on week days for the daily trip on the business of the bank to the branch office or offices, the mail bag was in his automobile.

16. On June 16, 1970, at about 8:30 a. m. o'clock, Ligo was operating his automobile in a westerly direction on Route 62 en route to the Shenango Valley Mall office, when his automobile collided with an oncoming car approximately five miles east of the Shenango Valley Mall office, as a result of which accident the decedent was killed. The mail bag was found in Ligo's wrecked car after the accident.

17. On the date of the accident and for several years prior thereto, Ligo resided with his family on Legislative Route 43099 in East Lackawannock Township in Mercer County about one-half mile northwest of Mercer, Pennsylvania.

18. The Shenango Valley Mall was located at the northeast corner of the intersection of State Route 18 and Route 62 in Hickory Township, Mercer County, Pennsylvania, about 12 miles west of Mercer, Pennsylvania. The bank was located at the southwest corner of the Mall structure.

19. After Ligo began his messenger duties he drove his automobile each morning on Legislative Route 43099 to Route 62 in Mercer and then west on Route 62 to the Mall premises. He used the westernmost entrance into the Mall, this being the most direct route to the Mall. In using this entrance Ligo passed the Route 62 bypass, continued west therefrom on regular Route 62 a distance of about 745 feet to the western-most entrance to the Mall. He then traveled northwardly from the Route 62 Mall entrance through the Mall premises to the bank parking lot a distance of 617 feet. After leaving the bank about five or ten minutes later, he traveled westwardly 547 feet to an exit on Route 18. He then traveled southwardly on Route 18 a distance of 729 feet to the intersection of Route 18 with regular Route 62. He then continued southwardly about one-quarter mile to the Route 18, Route 62 bypass intersection where he turned right and traveled in a westerly direction to downtown Sharon. There were traffic signals at the Route 18, Route 62 intersection, and at the Route 18, Route 62 bypass intersection. (See sketch and photograph submitted by counsel.) Traveling to the Mall premises involved a deviation from the shortest direct routes from Mercer to Sharon of about four-tenths of a mile.

20. On days that Ligo intended to stop at the Hickory Plaza branch office in Hickory Township, instead of proceeding southwardly on Route 18 through the intersection of regular Route 62 and Route 18 to the bypass, he would turn right at the regular Route 62, Route 18 intersection and proceed in a westerly direction on Route 62 to the Hickory Plaza. After leaving the Plaza, he would proceed west on Route 62 for a certain distance and then turn left on Buhl Farm Drive leading to the Route 62 bypass which he would then use to travel to downtown Sharon.

21. The route used by Ligo in traveling from his residence to the Shenango Valley Mall office was the most direct route of travel between these points.

22. The route of travel shortest in time from the Ligo residence to downtown Sharon was Legislative Route 43099 into Mercer, Route 62 from Mercer to Route 62 bypass and then Route 62 bypass into Sharon.

23. Some time after Ligo began his messenger duties, Linda Langiotti, an employee at the bank's main office in Sharon, began riding with Ligo from Mercer to the main office each weekday morning except Saturday. Prior to riding with Ligo she had driven her automobile from Greenville to Mercer with her sister as a passenger, discharged her sister at the Children's Aid Society in Mercer where she worked, and then continued to the main office. After she began riding with Ligo, she parked her car at the Children's Aid Society located west of the center of the community of Mercer on Route 62, and Ligo would pick her up there. She returned to Mercer each evening with Ligo and on the return trip Ligo used the Route 62 bypass to regular Route 62 and then regular Route 62 to Mercer. Route 18 was not used on the return trip. Ligo undertook this service to Miss Langiotti purely as a gratuitous gesture, and this service was in...