St. Paul Fire & Marine Ins. Co. v. Circle Bar J Boys' Ranch, Inc., 15--40109

• Decision Date: 26 November 1969
• Docket Number: No. 15--40109,15--40109
• Citation: 1 Wn.App. 377,461 P.2d 567
• Parties: ST. PAUL FIRE AND MARINE INSURANCE COMPANY, a foreign insurer, Appellant, v. The CIRCLE BAR J BOYS' RANCH, INC., a domestic corporation; and Lloyd V. Woleslagel and Jane Doe Woleslagel, husband and wife; and William Meese, Respondents.
• Court: Washington Court of Appeals

Page 377

1 Wn.App. 377

461 P.2d 567

ST. PAUL FIRE AND MARINE INSURANCE COMPANY, a foreign insurer, Appellant, v. The CIRCLE BAR J BOYS' RANCH, INC., a domestic corporation; and Lloyd V. Woleslagel and Jane Doe Woleslagel, husband and wife; and William Meese, Respondents.

No. 15--40109.

Court of Appeals of Washington, Division 3.

Nov. 26, 1969.

Rehearing Denied Jan. 8, 1970.

Review Denied March 13, 1970.

Lawrence Monbleau of Cashatt, Williams, Connelly & Rekofke, Spokane, for appellant.

Howard K. Michaelsen, John G. Layman and Brian G. Kennedy of Turner, Stoeve & Layman, and Daniel W. Giboney, Spokane, for respondents.

MUNSON, Judge.

St. Paul Fire and Marine Insurance Company, plaintiff, appeals from a declaratory judgment which held it was obliged: (1) to defend defendant Circle Bar J Boys' Ranch, Inc., hereinafter referred to as though it were the sole defendant, against litigation which might arise as a result of an accident of September 17, 1965; and (2) to pay any sums, subject to the policy's limits, adjudged to be owing any person arising from injuries suffered by William Meese in said accident.

In December of 1964, the defendant, a foster home for delinquent boys, purchased from plaintiff a three-year comprehensive general and automobile liability insurance policy. Only two portions thereof were potentially applicable to the instant case: (1) Coverage A, under which the policy insured defendant for liability imposed from the ownership, maintenance or use of its automobiles; and (2) Coverage B, which insured defendant for liability imposed from other than the ownership, maintenance or use of automobiles. Attached to the policy was the following endorsement:

IT IS AGREED THAT THE INSURANCE AFFORDED BY THIS POLICY SHALL NOT APPLY WITH RESPECT TO ANY CLAIM ARISING FROM ACCIDENTS WHICH OCCUR WHILE ANY AUTOMOBILE IS BEING OPERATED BY ANY PERSON UNDER 25 YEARS OF AGE.

On September 17, 1965, upon a public highway approximately three miles from the premises of defendant, its employee, Lloyd Woleslagel, aged 21, was driving the insured's 1954 pickup truck equipped with a plywood canopy mounted over its bed. The canopy, which formed a part of this vehicle, had benches on each side on which passengers could be seated and was used in transporting defendant's wards. William Meese and another juvenile ward were riding in the truck, under this canopy, as it proceeded towards Spokane, Washington, on ranch business. The canopy came loose and, while the two boys were attempting to attract Woleslagel's attention, fell off the truck, taking Meese with it, to his injury. At the trial it was established that the canopy had been improperly assembled and mounted on the truck bed a short time prior to its departure from the premises of defendant.

The evidence clearly establishes defendant was aware of the policy's restrictive endorsement pertaining to age. At the time of issuance of the policy defendant had no employees under the age of 25 years. However, it was defendant's interpretation that the exclusion referred only to its wards, whose age span was from 15 to 18 years of age, and not its employees. Mike Wiley, the original founder of the ranch and...