Vanguard Insurance v. Hartford Insurance

Opinion

SCHWEITZER, J.

JAppeal by plaintiff Vanguard Insurance Company from judgment in favor of defendant Hartford Insurance Company in an action for declaratory relief in which plaintiff sought to recover from defendant a pro rata share of a settlement made by plaintiff of a damage claim. The essential facts are not in dispute.

Hartford insured a Mr. and Mrs. Anderson under a “homeowners” policy which contained the following insuring clauses: “To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, and the company shall defend any suit against the insured alleging such bodily injury or

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property damage and seeking damages which are payable under the terms of this policy. . . .

“Definition of Insured: The unqualified word ‘Insured’ includes (1) the Named Insured and (2) if residents of his household, his spouse, the relatives of either, and any other person under the age of twenty-one in the care of an Insured. . . .”

Arrangements had been made for David Myers, age 13, son of Mr. and Mrs. Myers, plaintiff’s insureds, to spend the February 9 to February 12, 1968 weekend with the Andersons, Hartford’s insureds, as their guest. On February 10, 1968, David, while riding a bicycle adjacent to the Anderson house, collided with a bicycle being operated by Frederick Grindle, which resulted in fatal injuries to Frederick. Plaintiff Vanguard, the Myers insurance carrier, subsequently settled the claim for damages filed by Frederick’s parents on the basis that David was an “insured” under the Myers “homeowners” policy. By this action it seeks to recover from defendant Hartford, Anderson’s insurer, a pro rata share of the settlement, contending that at the time of the accident, David was also an “insured” under the Anderson (Hartford) policy.

The trial court found that the language of the Hartford policy was not ambiguous and not uncertain, and concluded that under the “definition of insured” clause in the Anderson (Hartford) policy, a person under the age of 21 in the care of the Andersons must be a resident of the Anderson household to be included in that definition, and that the Anderson (Hartford) policy did not cover David “because he was not a resident of the Anderson household.”