Stephan v. Allstate Ins. Co.
| Decision Date | 20 April 1976 |
| Docket Number | No. 1,CA-CIV,1 |
| Citation | 548 P.2d 1179,26 Ariz.App. 367,80 A.L.R.3d 1173 |
| Parties | , 80 A.L.R.3d 1173 Robert J. STEPHAN, Jr., Appellant, v. ALLSTATE INSURANCE COMPANY, an Illinois Corporation, Appellee. 2666. |
| Court | Arizona Court of Appeals |
The only question presented on this appeal is whether the standard collision provisions of the automobile liability policy issued by defendant Allstate Insurance Company to plaintiff Stephan provided coverage for temporary loss of use of his automobile while it was being repaired at the insurer's expense.
The matter was decided in the trial court on motion for summary judgment, and the facts are not in dispute. The insured's (Stephan's) automobile was damaged in an accident to such an extent that it required repairs. He took it to a repair shop of his choice and Allstate paid for the repair work. He then rented a second vehicle for one week while his auto was being repaired, incurring rental expenses in the amount of $129.87. Allstate denied Stephan's claim for this rental expense, advising him that there was no coverage for such rental or loss of use under his policy. Stephan then filed his complaint, contending that the policy provided coverage for the loss of use of his automobile while undergoing repair. 1
Before proceeding further, we point out that Stephan's claim did not purport to be a claim for Damages based upon any alleged unreasonable or arbitrary dealy by the insurer in performing its repair obligations under the policy. If such were the case, damages measured by loss of use would be proper, separate and apart from any express coverage provided in the policy. Home Indemnity Company v. Bush, 20 Ariz.App. 355, 513 P.2d 145 (1973). Rather, Stephan's claim was based solely on the contention that the policy itself provided Coverage for such loss of use for the period during which he was deprived of the use of the automobile while being repaired. By entering summary judgment for Allstate, the trial judge rejected this coverage contention.
Stephan bases his claim for coverage upon the provisions of Section IV of the policy, entitled 'Protection Against Loss to the Automobile'. Looking under Section IV on the index page of the policy, we find only two references which might indicate coverage for loss of use of an automobile. The first, 'Transportation Expense Paid' refers to page 13; the second, 'Car Rental Paid if Car Stolen', refers to page 14. On page 13 we find this pertinent provision:
'2. Transportation Expenses:
Allstate will reimburse the named insured for the cost of transportation:
(a) from the place of disablement of the automobile to the place of intended destination, but not to exceed $5 for each occurrence, provided the disablement involves a loss with respect to which this policy affords automobile collision or automobile comprehensive insurance;'
On page 14, we find:
'2. Transportation Expenses:
Allstate will reimburse the named insured for the cost of transportation:
* * *
* * *
'(b) if there be a theft of the entire automobile, not to exceed $8 per day nor a total of more than $200, incurred during the period starting 48 hours after the report of the theft to Allstate and ending when Allstate offers settlement for the theft, and if automobile comprehensive insurance is afforded by this policy.'
Although Stephan purchased both collision and comprehensive (theft) coverage so as to entitle him to the coverage benefits of both of the foregoing provisions, he does not base his claim on either of these express benefits. Rather he claims that coverage is afforded under the general provisions of Coverage D:
'Automobile Collision Insurance'
'When collision damages your car
'Allstate will pay for loss to the owned automobile or non-owned automobile, caused by collision, less the deductible amount stated on the Supplement Page, but the deductible amount shall not be deducted with respect to a collision involving the owned automobile and another automobile insured by Allstate.'
Stephan's claim is based upon the language '. . . for loss to the automobile . . . caused by collision. . . .'
Section IV of the policy contains provisions relating to both collision and comprehensive (theft) coverage. The term 'loss' as used in Section IV is defined as follows:
"loss' means direct and accidental loss of or damage to (a) the automobile, including its equipment, or (b) other insured property.'
It should further be noted that Allstate's liability under Section IV D (Collision Coverage Provisions) is clearly limited by the precise wording of the policy itself as follows:
'The limit of Allstate's liability is the actual cash value of the property, Or if the loss is of a part its actual cash value at the time of loss, but not to exceed what it would then cost to repair or replace the property or part with other of like kind and quality; provided, however, the limit of liability for loss to any trailer is $500.' (Emphasis added).
Notwithstanding the clear language of the collision provision and the limitation of liability provisions, Stephan contends that the use of the words 'loss of' in the definition section could be interpreted to include the 'loss of use' of his automobile while undergoing repairs, and thus an ambiguity is created which should be construed in his favor. We disagree. We recognize that ambiguous provisions in insurance policies must be construed against the insurer. However, this principle becomes applicable only when, after considering all the provisions of the policy, it is not possible for the Court to ascertain the meaning of the language used when applied to the facts before the Court. Maryland Casualty Company v. Clements, 15 Ariz.App. 216, 487 P.2d 437 (1971); Home Indemnity Company v. Wilson, 107 Ariz. 434, 489 P.2d 244 (1971); D.M.A.F.B. Federal Credit Union v. Employers Mutual Liability Insurance Co. of Wisconsin, 96 Ariz. 399, 396 P.2d 20 (1964). Here, when all of the provisions of the policy are considered, there is no ambiguity. The collision provisions are clearly limited, with an express provision detailing and limiting the one situation of Allstate's liability for transportation expenses in case of a collision. This provision allows transportation expenses 'from the place of disablement of the automobile to the place of intended destination, but not to exceed $5 for each occurrence. . . .' The limit of liability applicable to collision coverage is clear--'. . . not to exceed what it would then cost to repair or replace the property or part with other of like kind and quality.' Also, we have previously mentioned the index page listing 'Car Rental Paid If Car Stolen' (emphasis added). We further note that on page 13 of the policy directly...
To continue reading
Request your trial
-
Victory Container Corp. v. Sphere Ins. Co.
... ... of Cleveland v. Employers Surplus Lines Insurance Co., 419 F.2d 247 (6th Cir. 1969); Stephan v. Allstate Insurance Co., 26 Ariz.App. 367, 548 P.2d 1179 (1976). In the instant case, it is clear that both types of interest are covered by the ... ...
-
Liberty Ins. Underwriters v. Weitz Co.
... ... If the contractual language is clear, we will afford it its plain and ordinary meaning and apply it as written. Almagro v. Allstate Ins. Co., 129 Ariz. 163, 164-65, 629 P.2d 999, 1000-01 (App. 1981); Stephan v. Allstate Ins. Co., 26 Ariz. App. 367, 370, 548 P.2d 1179, 1182 ... ...
-
Farmers Ins. Co. of Arizona v. Oliver
...asserted ambiguity of the phrase "resident of the household" as applied to the particular facts. In Stephan v. Allstate Ins. Co., 26 Ariz.App. 367, 548 P.2d 1179, 80 A.L.R.3d 1173 (1976), we noted that the rule under which ambiguities in insurance policies are construed against the insurer ......
-
Noble v. National American Life Ins. Co.
...National American Group, 113 Ariz. 223, 550 P.2d 94 (1976). While appellant contends that the cases of Stephan v. Allstate Insurance Company, 26 Ariz.App. 367, 548 P.2d 1179 (1976), and John Hancock Mutual Life Insurance Company v. McNeill, 27 Ariz.App. 502, 556 P.2d 803 (1976), indicate a ......