American Employers Insurance Company v. The Board Of County Commissioners Of The County Of Adams

547 F.2d 511
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 14, 1976
Docket75-1004
StatusPublished
Cited by4 cases

This text of 547 F.2d 511 (American Employers Insurance Company v. The Board Of County Commissioners Of The County Of Adams) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Employers Insurance Company v. The Board Of County Commissioners Of The County Of Adams, 547 F.2d 511 (10th Cir. 1976).

Opinion

547 F.2d 511

AMERICAN EMPLOYERS INSURANCE COMPANY, Plaintiff-Appellee,
v.
The BOARD OF COUNTY COMMISSIONERS OF the COUNTY OF ADAMS,
STATE OF COLORADO, Defendant-Appellee,
Stanley Eugene Zierlein et al., Defendants-Appellants,
Employers Mutual Casualty Company, Intervenor-Appellant.

Nos. 75-1004, 75-1005.

United States Court of Appeals,
Tenth Circuit.

Argued and Submitted March 22, 1976.
Decided Dec. 14, 1976.

Arthur S. Bowman, Denver, Colo. (Bowman, Shambaugh, Geissinger & Wright, Denver, Colo., on brief), for defendants-appellants Holman, Zierlein and Sheets.

Robert R. Montgomery, Denver, Colo. (J. Bayard Young, Montgomery, Little, Young, Ogilvie, Campbell & McGrew, Denver, Colo., on brief), for intervenor-appellant.

Larry W. Berkowitz, S. Morris Lubow, Brighton, Colo., for defendant-appellee Bd. of County Commissioners.

Albert E. Zarlengo, Jr., Denver, Colo. (John C. Mott, Zarlengo, Mott & Zarlengo, Denver, Colo., on brief), for plaintiff-appellee American Employers Ins. Co.

Before LEWIS, Chief Judge, SETH, Circuit Judge, and MORRIS, Chief District Judge.*

MORRIS, Chief District Judge.

In this case appellants challenge the trial court's determinations with respect to the liability of an insurer on an insurance policy and the effect of certain Colorado statutes having to do with sovereign immunity.

Appellee American Employers Insurance Company (American Employers) brought this declaratory judgment action against all the other parties except the intervenor to determine its liability under an insurance policy. Appellee Board of County Commissioners for the County of Adams is the named insured on the policy. The incident which prompted the declaratory judgment action was an accident in Adams County in which two vehicles crashed into a creek bed at a place where bridge approaches had been washed away. Appellants Zierlein and Sheets allegedly sustained personal injuries in the accident and appellant Holman, owner of both vehicles, allegedly sustained property damage. The individual appellants asserted a counterclaim against American Employers and a cross-claim against the County, asserting that they were entitled to damages because the accident was caused by the County's negligence. The County, in answer to American Employers complaint, contended that the policy did cover the accident. However, the County also asserted a cross-claim against the individual appellants, contending that if it were determined that the insurance policy did not cover this accident, then the County would in any event be immune from liability on the accident by virtue of the doctrine of sovereign immunity. Appellant Employers Mutual Casualty Company (Employers Mutual) intervened in the action, filing an answer, counterclaim and cross-claim, asserting subrogation rights as to the claims of the individual appellants.

On November 8, 1974, a non-jury trial was had solely on the two issues of the existence of insurance coverage and the applicability of the doctrine of sovereign immunity. In findings of fact and conclusions of law announced from the bench that same day the trial court found for American Employers and the County and against the individual appellants and the intervenor, Employers Mutual. Specifically, the court held, in a judgment entered November 20, 1974, that American Employers' insurance policy did not provide coverage as to this accident and American Employers was accordingly not liable on the counterclaims but that American Employers was nonetheless obligated to defend the County as to claims for damages arising from the accident. The court further held that, because of sovereign immunity, the County was not liable to any of the appellants on their cross-claims.

All these holdings, except that as to American Employers' duty to defend, are challenged by appellants here. Appellants contend that the insurance policy covered the accident and that, accordingly, both American Employers and the County are liable. Alternatively, appellants argue that even if there is no insurance coverage, the County is still liable because the statute purportedly reserving sovereign immunity as to such county roads, while waiving sovereign immunity as to other types of roads, is unconstitutional.

Appellants' two contentions will be discussed separately. Certain undisputed facts are material to both issues. On May 6, 1973, there was widespread flooding in Adams County, Colorado, causing extensive damage. On a county road, known as Bromley Lane, the flood waters undercut and washed away the asphalt portions of the approach to a bridge over Sand Creek. The bridge subsequently collapsed. On May 18, 1973, two vehicles travelling along Bromley Lane plunged into the creek bed at the site of the washed out bridge approaches. Appellants sustained personal injuries and property damage as a result of the accident.

I. Insurance Coverage.

The Colorado Governmental Immunity Act provides, in relevant part, as follows:

(1) Notwithstanding any provision of law or of this article to the contrary, if a public entity provides insurance coverage provided by an insurance company authorized to do business in this state to insure itself against liability for any injury or to insure any of its employees against his liability for any injury resulting from an act or omission by such employee acting within the scope of his employment, then such public entity shall be deemed to have waived the defense of sovereign immunity in any action for damages for any such injury insured against, subject to the provisions of subsection (2) of this section.

(2) If the defense of sovereign immunity would be available to a public entity except for the provisions of subsection (1) of this section, then damages for injury shall not be recoverable in excess of the amount of the insurance coverage and shall be recovered from the insurer only. The insurer shall not be named as a party defendant. Colo.Rev.Stat. § 24-10-104.

It is not disputed in this case that if the insurance policy covers the accident, the doctrine of sovereign immunity does not apply. American Employers admits that its insurance policy written on the County was in full force and effect on the day of the accident and that it provided general liability coverage.

It is also not disputed that the policy included an endorsement which provides as follows:

It is agreed that this policy shall not apply to accidents arising out of the existence of county Highways or Roads except those caused by or arising out of and occurring during the course of street, road or highway construction, reconstruction, repair, cleaning or snow removal operations by or on behalf of the insured.

The trial court held that this endorsement excluded American Employers' liability as to the accident involved here. Appellants contend that this holding was erroneous.

Appellants argue, first, that this accident arose, not from the "existence" of a county road, but from the "non-existence" of a county road so that the policy exclusion predicated on "existence" is not applicable here.

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Bluebook (online)
547 F.2d 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-employers-insurance-company-v-the-board-of-county-commissioners-ca10-1976.