Afrasiabi v. State Farm Fire & Casualty Co.

Opinion

SEYMOUR, J.* This appeal concerns the interpretation of an exclusion clause in a homeowners insurance policy issued by respondent State Farm Fire & Casualty Company (State Farm). The appellant, Mehran Afrasiabi (Mehran), contends the trial court erred in finding the household resident exclusion in his uncle’s policy applied to him. We affirm.

The insured, Mohamad Afrasiabi (Mohamad), was sued by his nephew Mehran for personal injuries he received after being thrown into a swimming pool by four men, including Mohamad, during a party at the home of a family friend. Mohamad requested that State Farm defend and indemnify [1185]him under his homeowners policy. State Farm refused, contending Mehran was an insured under the policy, and the policy contained a clause excluding coverage for claims for bodily injury to any insured (the exclusion clause). The State Farm policy defined insured as follows: “ ‘Insured’ means you and, if residents of your household: a. your relatives; b. any other person under the age of 21 who is in the care of a person described above.” After State Farm declined coverage, Mehran released Mohamad from any personal financial responsibility in return for an assignment of Mohamad’s rights, if any, against State Farm. A default judgment was entered against Mohamad for $2,109,724 plus costs and interest.

At trial, the parties stipulated to first try the issue of coverage and defer the issue of damages. The uncontroverted testimony was that at the time .of the accident, Mehran was living in his uncle’s 1,500-square-foot, 4-bedroom home. Mehran received his mail at the house. He paid rent to Mohamad, but if he did not have enough money to pay the rent, Mohamad would on occasion reduce the rent in exchange for work done around the house. Mehran had access to the entire house, with the exception of Mohamad’s bedroom. Mehran used the kitchen occasionally and was allowed to store tools in the garage.

The court found the term “household” was not ambiguous, and under the circumstances surrounding Mehran’.s and Mohamad’s living arrangements, Mehran was a resident relative of the household. Judgment was entered for State Farm, and this appeal followed.

The sole issue in this case is whether Mehran was an insured under the State Farm policy. He argues the phrase “resident of your household,” as used in the policy exclusion, is ambiguous and should have been construed to exclude adult boarders. Mehran argues that because he paid rent and had the exclusive right to occupy his bedroom, he maintained his own separate household. The facts belie this claim. Mehran had the right to use all areas of the house except his Uncle Mohamad’s bedroom and office. The house was not divided into separate apartments. There was only one entrance to the house. Mohamad paid the utilities and Mehran used the kitchen and refrigerator as he chose.