Travelers Ins. Co. v. Norwich Union Fire Ins. Soc.

• Decision Date: 14 October 1963
• Citation: 34 Cal.Rptr. 406,221 Cal.App.2d 150
• Parties: The TRAVELERS INSURANCE COMPANY, a corporation, Plaintiff and Appellant, v. NORWICH UNION FIRE INSURANCE SOCIETY, a corporation, Defendant and Respondent. Civ. 20013.
• Court: California Court of Appeals Court of Appeals

Page 406

34 Cal.Rptr. 406

221 Cal.App.2d 150

The TRAVELERS INSURANCE COMPANY, a corporation, Plaintiff and Appellant, v. NORWICH UNION FIRE INSURANCE SOCIETY, a corporation, Defendant and Respondent.

Civ. 20013.

District Court of Appeal, First District, Division 3, California.

Oct. 14, 1963.

Weinmann, Rode, Burnhill & Moffitt, Oakland, Cyril Viadro, San Francisco, for appellant.

Berry, Davis, Channell & McNamara, by Daniel J. McNamara, Oakland, for respondents.

DRAPER, Presiding Justice.

This case turns on construction of a policy of automobile liability insurance issued by defendant Norwich. The question is whether the policy requires Norwich to defend an action brought by its named insured against one asserted to be an additional insured by reason of his permitted use of the insured automobile.

Defendant's policy was issued to Marcelin Chlemens. By it, Norwich agreed to 'pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of * * * bodily injury * * * sustained by any person * * * arising out of the ownership, maintenance or use of the owned automobile', and also to 'defend any suit alleging such bodily injury.' The 'insured' to whom this obligation runs is defined to include the named insured (Chlemens) and 'any other person using such automobile, provided the actual use thereof is with the permission of the named insured.' It is specifically provided that "use' of an automobile includes the loading and unloading thereof.'

Chlemens filed a personal injury action against East Bay Brass Foundry Co. and one of its employees. He alleged that: he bought a quantity of bronze paperweights from that firm; its employee, Despite contrary instructions, loaded them into Chlemens' car in cartons which were too large to be lifted by one man; when Chlemens attempted to lift the cartons from his car, he suffered sprain of his back and shoulders, for which he prayed damages.

Norwich refused to defend the action. Plaintiff Travelers had issued to Foundry a comprehensive liability policy which was in effect at date of Chlemens' alleged injury. As to any automobile not owned by Foundry, however, this policy extended only excess coverage. Travelers employed counsel to defend Foundry and brought this action seeking a declaration of the rights and duties of the two insurers.

The trial court found that Chlemens' complaint was based upon loading of his vehicle by Foundry, but concluded that Norwich had no duty to indemnify or defend. Travelers appeals from the judgment.

The question has not been determined in California. One case (Bachman v. Independence Indem. Co., 214 Cal. 529, 6 P.2d 943) holds that similar policy language indemnifies the additional insured against wrongful death claim by heirs of the named insured. But it expressly leaves open the question whether a like result would follow if the named insured were himself seeking damages for injuries.

Norwich argues that its policy, viewed as a whole, should not be construed to require it to pay or to defend against claims of the named insured arising from his own injuries. It points to conflicts which could arise under the cooperation clause if the coverage be so broad, and argues that the purpose of the policy is to indemnify against liability, rather than to insure against injury.

But the policy on its face undertakes to indemnify either the named or the additional insured against liability for bodily injury 'sustained by any person'. To construe this as meaning 'any person except the named insured' would be to rewrite the policy. Other jurisdictions have uniformly held comparable policy language to cover claims of the named insured against the additional...