Clark v. Universal Underwriters Insurance

KINGSLEY, J.

Plaintiff recovered a judgment against Henry M. Hawkins, Sr., and Masters Pontiac (hereinafter Masters), for damages suffered by him as the result of an automobile accident involving a car owned by Masters and driven by Hawkins with their consent. The judgment was in the amount of $5,000 against Masters and Hawkins jointly, and against Hawkins for the additional amount of $31,500. Appellant Universal Underwriters Insurance Company (hereinafter Universal) had issued a policy of liability insurance, with limits of $300,000, insuring Masters. By the terms of the policy as originally drafted it covered, as “additional insured, ’ ’ persons driving automobiles owned by Masters with Masters’ consent. However, there had been added to the policy a so-called “garage endorsement” which purported to limit this clause and to restrict the class of “additional insured” to “any other person or organization legally responsible for the use thereof

only while such automobile is operated by the named insured.”

(Italics added.) Universal paid the $5,000 judgment against Masters but, contending that Hawkins was not an insured under the policy, it refused to -pay the additional judgment against him.

Plaintiff thereupon brought an action against Universal for declaratory relief and for recovery of the unpaid judgment with interest. The trial court held that Hawkins was an insured under the policy and gave judgment to plaintiff as prayed. Defendant has appealed.

[748]

It is admitted that, if Hawkins was fully insured under the policy the judgment is proper; the sole contentions are: (1) that Hawkins was not an insured under the policy; or, alternatively, (2) if Hawkins was an insured, he was covered only to the extent of the $5,000 already paid by Universal to plaintiff.

I

Defendant admits that previous decisions of the Supreme Court of this state have held that a provision in an automobile liability policy attempting to restrict coverage so as to exclude persons for whose conduct a named insured is liable is void as against public policy.

(Interinsurance Exchange of Auto. Club of So. Cal.