State Farm Mut Automobile Ins Co v. Coughran

• Decision Date: 28 March 1938
• Docket Number: No. 519,519
• Citation: 303 U.S. 485,58 S.Ct. 670,82 L.Ed. 970
• Parties: STATE FARM MUT. AUTOMOBILE INS. CO. v. COUGHRAN
• Court: U.S. Supreme Court

303 U.S. 485

58 S.Ct. 670

82 L.Ed. 970

STATE FARM MUT. AUTOMOBILE INS. CO.

v COUGHRAN.

No. 519.

Argued March 4, 1938.

Decided March 28, 1938.

Messrs. Joseph A. Spray, of Los Angeles, Cal., and Sidney L. Graham, of Bloomington, Ill., for petitioner.

Mr. Raymond G. Stanbury, of Los Angeles, Cal., for respondent.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

Petitioner's policy insured one R. O. Anthony, the owner, against liability for injuries caused by a designated automobile. As the result of alleged negligent and unlawful action by the assured's wife the car collided with a truck June 16, 1934. Respondent Coughran suffered injuries for which he recovered judgment against Anthony, also against his wife. Both were insolvent; a writ of execution against them was returned unsatisfied.

Thereupon respondent commenced this suit to recover of petitioner the amount of his unpaid judgment. He claimed this right under the policy and statute. Answering, the company exhibited the policy and denied liability. As a first separate defense it alleged that Anthony and his wife had not complied with certain terms of the contract. As a second: 'That said accident was an accident for which the defendant under the terms and conditions of said policy is not liable in that: At the time and place of the accident the automobile of the insured was being driven and operated by a person who was not the paid driver of the insured, nor a member of his immediate family, nor a person acting under the direction of the assured. This defendant alleges that the said automobile at the time of the accident was being driven and operated by a person in violation of the laws of the State of California as to age and as to driver's license and further alleges that the driver of said car was a minor, being a female of the age of approximately 13 years.'

There were other separate defenses.

A jury having been waived, the cause went to the court on the pleadings and evidence. It made findings of fact with conclusion of law and entered judgment for Coughran. Neither side requested other or different findings.

The Circuit Court of Appeals thought findings III and XII were inconsistent 'and to elucidate the truth, a review of the testimony is required.' After such review it ruled that the findings so elucidated were adequate and required affirmation of the challenged judgment. One judge thought otherwise and presented a separate opinion.

Under applicable statutes and repeated rulings here, the matter open for consideration upon the appeal was whether the findings of the trial court supported its judgment. To review the evidence was beyond the competency of the court. 28 U.S.C.A. §§ 773, 875; Walnut v. Wade, 103 U.S. 683, 688, 26 L.Ed. 526; Stanley v. Board of Supervisors of Albany County, 121 U.S. 535, 547, 7 S.Ct. 1234, 30 L.Ed. 1000; Law v. United States, 266 U.S. 494, 496, 45 S.Ct. 175, 176, 69 L.Ed. 401.

Two persons were in the insured automobile when the accident occurred. Nancy Leidendeker, a girl of 13 without license to drive, occupied the driver's seat. By her side sat Helen B. Anthony, wife of the assured, an adult holding a driver's license.

The principal point upon which the petitioner now relies is that as the accident occurred when the car was being driven and operated by the young girl contrary to the owner's commands and in violation of California statutes, the policy did not cover his liability.

The policy (incorporated in the findings) under the heading 'Terms and Conditions Forming a Part of This Policy,' provides:

'(1) Risks Not Assumed by This Company. The Company shall not be liable and no liability or obligation of any kind shall attach to the Company for loss or damage: * * * (A) * * * (D) Unless the said automobile is being operated by the Assured, his paid driver, members of his immediate family, or persons acting under the direction of the Assured; (E) Caused while the said automobile is being driven or operated by any person whatsoever either under the influence of liquor or drugs or violating any law or ordinance as to age or driving license; (F) * * *'

Applicable sections of the California Vehicle Act,—Stats. 1923, pp. 518, 519, 536; Stats.1927, p. 1427; Stats.1931, p. 2108 follow:

'Section 1. The following words and phrases used in this act shall have the meanings here ascribed to them.'

'Sec. 18. 'Operator.' Every person who drives, operates or is in actual physical control of a motor vehicle upon a public highway.'

'Sec. 76. Unlawful to employ unlicensed chauffeur. No person shall employ for hire as a chauffeur of a motor vehicle, any person not licensed as in this act provided. No person shall authorize or knowingly permit a motor vehicle owned by him or under his control, to be driven by any person who has no legal right to do so or in violation of the provisions of this act.'

'Sec. 58. Operators and chauffeurs must be licensed.

'(a) It shall be unlawful for any person to drive a motor vehicle upon any public highway in this state, whether as an operator or a chauffeur, unless such person has been licensed as an operator or chauffeur; except such persons as are expressly exempted under this act.' Exception not applicable here.

'Sec. 64. What persons shall not be licensed as operators or chauffeurs.

'(a) An operator's license shall not be issued to any person under the age of sixteen years and no chauffeur's license shall be issued to any person under the age of eighteen years, provided that an operator's license may be issued to any minor over the age of fourteen years and less than sixteen years of age upon special application and statement of reasons by the parent or guardian of such minor.'

Especially pertinent findings by the trial court follow:

'III. The court finds that on or about the 16th day of June, 1934, and while said policy was in full force and effect, one Helen B. Anthony operated the Chevrolet automobile referred to in and covered by the said policy of insurance with the permission and consent of the assured, R. O. Anthony, and operated the same negligently so as proximately to cause an accident and injury to the person and property of the plaintiff to his damage in the reasonable sum of Five Thousand Ninety-two and 55/100 Dollars ($5092.55).'

'IX. The court finds that it is true that the defendant, prior to the trial of the action in the state court entered into the non-waiver agreement received in evidence in this action with the assured, R. O. Anthony, and with Helen B. Anthony. That the said non-waiver agreement was executed just prior to the commencement of the trial of the state court action. That the plaintiff was not a party to that agreement and had no knowledge of any facts referred to...