State Farm Mut. Auto. Ins. Co. v. Moorer

• Decision Date: 05 February 1998
• Docket Number: No. 2802,2802
• Citation: 330 S.C. 46,496 S.E.2d 875
• Court: South Carolina Court of Appeals
• Parties: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant, v. Sheila MOORER, as Personal Representative of the Estate of Eddie Lee Moorer, deceased, Sam Antonio Neals, Michael Anderson, Mona T. "Tiny" Preston, Shelton Richardson, and Stella Richardson, Defendants, Of whom, Sheila Moorer, as Personal Representative of the Estate of Eddie Lee Moorer, deceased, is Respondent. . Heard

Page 875

496 S.E.2d 875

330 S.C. 46

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant, v. Sheila MOORER, as Personal Representative of the Estate of Eddie Lee Moorer, deceased, Sam Antonio Neals, Michael Anderson, Mona T. "Tiny" Preston, Shelton Richardson, and Stella Richardson, Defendants Of whom, Sheila Moorer, as Personal Representative of the Estate of Eddie Lee Moorer, deceased, is Respondent.

No. 2802.

Court of Appeals of South Carolina.

Heard Feb. 5, 1998.

Decided Feb. 23, 1998.

Timothy A. Domin and James A. Atkins, both of Clawson & Staubes, Charleston, for Appellant.

E. Paul Gibson, of Riesen Law Firm, North Charleston, for Respondent.

ANDERSON, Judge.

State Farm Mutual Automobile Insurance Company brought this declaratory judgment action to determine whether four policies of insurance issued to Earline Neals provided liability coverage for her grandson's (Sam Neals's) use of a non-owned vehicle. Sam Neals was a passenger in a non-owned vehicle when he allegedly shot and killed Eddie Lee Moorer, who was driving alone in another vehicle on Highway 70 in Orangeburg County. The master concluded liability coverage was due under the policies and that the four policies could be stacked. We affirm in part and reverse in part.

FACTUAL/PROCEDURAL BACKGROUND

The parties stipulated to the pertinent facts for purposes of the declaratory judgment action. On May 17, 1992, Eddie Lee Moorer was driving alone in his 1984 Chrysler LeBaron on Highway 70 in Orangeburg County. At the same time, Shelton Richardson was driving on Highway 70 in a vehicle owned by his mother, Stella Richardson. Sam Neals was a front-seat passenger in the Richardson vehicle; Michael Anderson and Mona T. "Tiny" Preston were passengers in the back seat.

As the Richardson vehicle proceeded on Highway 70 it came upon the vehicle of Eddie Lee Moorer. Richardson accelerated, and as the Richardson vehicle began to pass Eddie Lee Moorer's vehicle on the left side, one or more gunshots were fired from the Richardson vehicle at Moorer's vehicle. Eddie Lee Moorer died from a single gunshot wound to the left side of his head. None of the four occupants of the Richardson vehicle ever reported the events of May 17, 1992 to any authority. No weapons were ever recovered by law enforcement.

On June 11, 1993, Michael Dash, an acquaintance of Neals, Richardson, Anderson, and Preston, gave a written statement to the Orangeburg County Sheriff's Department implicating Neals, Richardson, Anderson, and Preston in the shooting death of Eddie Lee Moorer. All four were arrested and charged with murder. Prior to trial, Richardson, Anderson, and Preston were allowed to plead guilty to misprision of a felony in exchange for their testimony against Neals. Neals ultimately pleaded guilty to voluntary manslaughter.

As a result of the death of her husband, Eddie Lee Moorer, Sheila Moorer commenced wrongful death and survival actions alleging various torts against Neals, Anderson, Preston, Shelton Richardson, Stella Richardson, and John Doe. Consequently, State Farm filed this action for declaratory judgment against Sheila Moorer, as personal representative of the estate of Eddie Lee Moorer, Sam Neals, Anderson, Preston, Shelton Richardson, and Stella Richardson for a determination of whether coverage exists for the death of Eddie Lee Moorer under four automobile liability policies issued to Earline Neals, the grandmother of Sam Neals. ¹ At the time of the shooting, Sam Neals resided with his grandmother, Earline Neals, and was an "insured" under the terms of her policies. The parties agreed Eddie Lee Moorer met his death through actions arising out of the use and operation of a motor vehicle within the meaning of Wausau Underwriters Insurance Co. v. Howser, 309 S.C. 269, 422 S.E.2d 106 (1992). State Farm's primary argument against coverage was insurance for a non-owned vehicle is voluntary coverage which may exclude intentional acts. State Farm argues the policies limit liability coverage to "accidents"; therefore, intentional acts such as the shooting by Neals are outside the scope of the policies.

The master found the State Farm policies issued to Earline Neals provided coverage for Sam Neals's use of a non-owned vehicle, the use resulting in the shooting death of Eddie Lee Moorer. The master found liability coverage is not limited to an "accident" in the case of a non-owned vehicle; rather, coverage is triggered by "use" of a non-owned vehicle which results in injury.

The master stated that even if an "accident" is necessary for coverage, since State Farm failed to define the term in its policy, the court must determine what constitutes an "accident" under the policy. Relying on Chapman v. Allstate Insurance Co., 263 S.C. 565, 211 S.E.2d 876 (1975), the master ruled that an "accident" is defined from the point of view of the victim, Eddie Lee Moorer, not the insured, Sam Neals. He concluded Moorer's injuries were the result of an "accident" because the harm to Moorer was unforeseen as to Moorer and not the result of his own misconduct.

The master also noted State Farm failed to include a policy provision which excluded injuries caused by intentional acts of an insured while using a non-owned vehicle. Moreover, the master concluded that, although there was evidence "that Neals intentionally shot a firearm out of the Richardson vehicle while taunting Moorer, there [was] no evidence to support the contention that Neals intended to shoot Moorer and intended to kill him." Finally, the master found it was questionable whether the anti-stacking provision in the policy applied only to liability coverage for owned vehicles or whether it related to the coverage for non-owned vehicles as well. Construing the perceived ambiguity against State Farm, the master ruled Sheila Moorer could stack the coverage of all four policies issued to Earline Neals, for a total recovery of $200,000. State Farm appeals.

ISSUES

(1) Did the master err in determining Moorer was entitled to recover under Earline Neals's liability insurance when the policies were allegedly limited to coverage for "accidents"?

(2) Did the master err in finding the policies could be stacked?

STANDARD OF REVIEW

This case involves an action at law for interpretation of a contract referred to the master-in-equity with direct appeal to the Supreme Court. Therefore, this Court will correct any error of law, but we must affirm the master's findings of fact unless there is no evidence which reasonably supports those findings. Cobb v. Benjamin, 325 S.C. 573, 482 S.E.2d 589 (Ct.App.1997).

"On appeal of an action at law tried by the judge without a jury [the Court of Appeals] will review the [judge's] factual findings to determine if there is any evidence to support them." South Carolina Farm Bureau Mut. Ins. Co. v. Windham, 303 S.C. 330, 331, 400 S.E.2d 497, 497 (Ct.App.1990). An action to construe a contract is one at law. Texcon, Inc. v. Anderson Aviation, Inc., 284 S.C. 307, 326 S.E.2d 168 (Ct.App.1985). In legal actions, our scope of review extends only to the correction of errors of law. State Auto Property & Cas. Ins. Co. v. Gibbs, 314 S.C. 345, 444 S.E.2d 504 (1994) (action to declare excess or secondary liability insurance coverage is an action at law and thus, facts found by a judge sitting without a jury should not be disturbed upon appeal unless found to be without evidence which reasonably supports the judge's findings).

LAW/ANALYSIS

1. LIABILITY COVERAGE

State Farm argues liability coverage is not available for the injuries and resulting death of Eddie Lee Moorer because liability coverage is limited to "accidents," and the intentional shooting of Moorer by the insured, Sam Neals, was not an "accident." State Farm argues whether the occurrence is deemed an accident should be viewed from the standpoint of the insured, not the victim. Further, State Farm argues coverage is not available for the intentional acts of the insured because non-owned vehicle coverage is voluntary coverage for which the parties may stipulate their own terms.

The State Farm policies provide for liability coverage in pertinent part as follows:

We will:

1. pay damages which an insured becomes legally liable to pay because of:

a. bodily injury to others, and

b. damage to or destruction of property including loss of its use, caused by accident resulting from the ownership, maintenance or use of your car....

The emphasized words are defined in the policy. Under a subsection labeled "Coverage for the Use of Other Cars," the policy further provides, "The liability coverage extends to the use, by an insured, of a newly acquired car, a temporary substitute car or a non-owned car."

a. Coverage for owned and non-owned vehicles is limited to "accidents."

The master found the policy terms noted above expressly limit liability coverage to instances where an insured becomes legally liable to others for injury or damages caused by an "accident" involving an owned vehicle, but that the policy does not provide such a limitation for non-owned vehicles. The master stated "it appears that an 'accident' does not have to occur in the case of a non-owned vehicle, but merely injury arising out of the use of a non-owned vehicle."

State Farm contends the policy language simply extends liability coverage for "accidents" to non-owned vehicles. Moorer argues the portion of the policy regarding non-owned vehicles does not specifically state an "accident" is required for coverage to apply, and any ambiguity should be resolved in favor of coverage. We find no ambiguity on the face of the policy. We agree with State Farm that the provision in question simply extends liability coverage for "accidents" to non-owned vehicles, and it is found in a logical place in the policy. To view the policy as requiring an "accident" only for the use of owned vehicles is a strained construction that ignores the clear wording of the policy.

b. No explicit...