Hartford Accident & Indemnity Co. v. Larges

LILLIE, J. Hartford appeals from the adverse portions of a judgment in an action for declaratory relief. The insurer had sought a determination that it had no obligation to defend or indemnify, or thereafter pay any judgment rendered against Frank Lyons, doing business as The Lyon’s Den, under the [632]terms and conditions of a comprehensive, general automobile liability policy issued to Lyons, and James V. Larges, the named insured in a Hartford family automobile policy. The appeal relates solely to the conclusions reached as to the Larges policy.

The relevant facts are as follows: Lyons was in the catering business. On December 9, 1960, he was engaged to cater for a housing development in Santa Ana; to assist him Lyons hired defendant Larges, who was a bartender, and defendants Smith and Neely. The group was driven to Santa Ana by Lyons in a Ford Vanette owned by Lyons, the vehicle being a van type truck with six wheels (dual wheels on the rear). During the course of the evening Lyons went elsewhere, leaving the Vanette at the housing development. Later the same evening, presumably when the services of the three were no longer needed, on his own initiative Larges took the vehicle and started back to his employer’s place of business with the Smith and Neely girls as passengers. The car became involved ~"rU accident, and his two passengers subsequently instituted ;inst Larges.

^eSi vas the owner of a certain Oldsmobile automobile _^ch is f escribed in the family automobile policy issued to nm by irtford. That policy provided not only for the payment ofihis behalf of all sums he became legally obligated to pay-because of injury arising from the operation of the Oldsmqbile but also of any nonowned automobile. With regard to a nonowned automobile, under section I those insured are (1) the named insured, and (2) any relative, but only with respect1 to a private passenger automobile or trailer, provided the actual use thereof is with the permission of the owner. The following terms are then defined: “Private passenger automobile” means a “four wheel private passenger, station wagon, or jeep type automobile”; “Non-owned automobile” means an “automobile or trailer not owned by or furnished for the regular use of either the named insured or any relative, other than a temporary substitute automobile.” Under “Exclusions ’ ’ there is then the following exclusion clause: ‘ ‘ This policy does not apply under Section I: (H) To a non-owned automobile while used (1) in the automobile business by the insured or (2) in any other business or occupation of the insured, except a private passenger automobile operated or occupied by the named insured. ...”