State Automobile Mut. Ins. Co. v. Connable-Joest, Inc.

• Decision Date: 04 March 1939
• Citation: 125 S.W.2d 490
• Parties: STATE AUTOMOBILE MUT. INS. CO. v. CONNABLE-JOEST, Inc.
• Court: Tennessee Supreme Court

125 S.W.2d 490

STATE AUTOMOBILE MUT. INS. CO. v. CONNABLE-JOEST, Inc.

Supreme Court of Tennessee.

March 4, 1939.

Error to Circuit Court, Shelby County; J. P. M. Hamner, Judge.

Action by Connable-Joest, Inc., against the State Automobile Mutual Insurance Company to recover property damage to an automobile under a policy of liability insurance. Judgment of circuit court for plaintiff was affirmed by the Court of Appeals, and defendant brings certiorari.

Reversed and dismissed.

Grover N. McCormick and Robert Burton, both of Memphis, for plaintiff in error.

Babendreer & Spears, of Memphis, for defendant in error.

DeHAVEN, Justice.

This is an action on a policy of liability insurance issued by the State Automobile Mutual Insurance Company to Connable-Joest, Incorporated, to recover property damage to an automobile suffered when it fell off a hoist while elevated for the purpose of being greased and oiled.

The policy, known as a Public Garage Liability Insurance policy, was in full force and effect on the 30th day of January, 1937, when the accident involved in this suit occurred. The insured was operating an automobile service station and garage in the City of Memphis, Tennessee, and one of its customers left his automobile with the insúred to be serviced by having the oil changed and greased sometime during the day. It was understood that when the work was finished the customer would be notified. While the automobile was in complete charge and control of the insured, and while insured's employees had the automobile elevated on a hoist maintained at its service station for the purpose of greasing and oiling automobiles, the automobile in some way became overbalanced and fell to the concrete floor and was damaged. When, in due course, the insurance company was notified of the accident, it took the position that the policy did not cover the damage to the automobile in charge of the insured while being worked on at its place of business, and denied liability. Thereupon the amount of loss suffered by the customer was paid by the insured, and this suit was instituted to recover the amount so paid.

The pertinent parts of the policy of insurance are as follows:

"State Automobile Mutual Insurance Company * * * does hereby insure the named assured (Connable-Joest, Inc.) as hereinafter provided in the schedule of hazards.

"Schedule of Hazards

"Against liability for loss and/or expense resulting from claims upon the named assured for damages, not exceeding the limits hereinafter set forth, if such claims are made on account of

                   "(I)      Bodily injury, including death
                Liability    resulting therefrom, accidentally
                             sustained by any person or
                             persons and/or
                   "(II)     Damage to or destruction of
                Property     property of others and loss of
                Damage       use thereof and if such claims
                             are caused, while this policy is
                             in force, by reason of
                   "(a)        The ownership, maintenance
                             occupation, or use of an automobile
                             sales agency, service
                             station, repair shop, and/or
                             public garage at the location described
                             in Declaration 2, and
                             the public ways immediately adjoining
                             including all operations
                             either on the premises or elsewhere
                             which are necessary and
                             incidental thereto, the operation
                             of hoists to raise motor vehicles
                             for the greasing, oiling
                             or repairing thereof, ordinary
                             repairs to all buildings on the
                             premises and mechanical equipment
                             therein, and structural
                             and mechanical repairs to motor
                             vehicles and their parts
                             and/or
                    "(b)       The use, ownership, maintenance
                             or operation (including
                             loading and unloading) within
                             the limits of the United States
                             of America and the Dominion
                             of Canada of any style, type, or
                             make of motor vehicle, tractor,
                             or trailer for any purpose in
                             connection with the work defined
                             in Paragraph (a) above
                             and for pleasure use." (Italics
                             ours.)
                

Section 9 of the policy, under the title "Conditions, Limitations, and Agreements," is as follows:

"9. Exclusions. The Company shall not be...