Gonzalez v. St. Paul Mercury Insurance

[677]

Opinion

THOMPSON, J.

The case at bench involves construction of an exclusionary clause of an all risk homeowner’s policy of liability insurance. The clause reads in pertinent part: “[T]his Policy does not apply . . . under [the all risk homeowner’s coverage] to the ownership, maintenance, operation, use, loading or unloading of.. . automobiles ... while away from the premises . . . .” Applying traditional rules of construction of insurance policies, we conclude that the exclusion does not apply to, and the policy hence indemnifies against, liability of the insured for an accident away from the premises arising out of the insured’s negligent repair on his premises of the brakes of his automobile. Accordingly, we reverse a judgment for the defendant insurer.

The relevant facts of the case at bench are either undisputed or stipulated.

Defendant, St. Paul Mercury Insurance Company, issued its homeowner’s policy of liability insurance to Ernest Martinez. By “Coverage E,” St. Paul obligated itself to “pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of injury or property damage to which this insurance applies, caused by an occurrence . .'. .” The policy defines “injury” as including bodily injury and death, and “occurrence” as “an accident. . . which results, during the policy period, in injury . . . neither expected nor intended from the standpoint of the insured.” Excluded from the policy coverage are the risks described in the portion of the policy quoted in the first paragraph of this opinion.

On June 14, 1971, while the policy was in effect, Martinez, the insured, on his premises negligently repaired the brakes of his Ford automobile. Five weeks later, while driving the Ford at a point away from the premises, Martinez struck and killed Julian Gonzalez, the son of Ignacio and Antonia Gonzalez, the plaintiffs in the case at bench. The parties stipulated that the death of Julian “was a proximate result of the negligent conduct of Ernest Martinez in the repair of his brakes on his Ford vehicle ....”

On August 20, 1971, Ignacio and Antonia Gonzalez filed Suit against Martinez for the wrongful death of their son. Notice of the action was given to St. Paul no later than April or May of 1973. St. Paul did not participate in the defense of the action. On November 6, 1974, judgment