Continental Ins. Co. v. Whittington

1994 Ohio 362
CourtOhio Supreme Court
DecidedDecember 13, 1994
Docket1993-0667
StatusPublished
Cited by9 cases

This text of 1994 Ohio 362 (Continental Ins. Co. v. Whittington) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Ins. Co. v. Whittington, 1994 Ohio 362 (Ohio 1994).

Opinion

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Continental Insurance Company, Appellee, v. Whittington et al., Appellees; Smith et al., Appellants. [Cite as Continental Ins. Co. v. Whittington (1994), Ohio St.3d .] Civil procedure -- Any error by trial court in denying motion for summary judgment is rendered moot or harmless, when. --- Any error by a trial court in denying a motion for summary judgment is rendered moot or harmless if a subsequent trial on the same issues raised in the motion demonstrates that there were genuine issues of material fact supporting a judgment in favor of the party against whom the motion was made. --- (No. 93-667 -- Submitted October 11, 1994 -- Decided December 14, 1994.) Appeal from the Court of Appeals for Darke County, No. CA-1295. On July 5, 1989, at approximately 9:30 p.m., Sean Sonner ("Sonner") was involved in an accident while driving a van owned by his employer, appellees Terry Whittington and William Brinley, d.b.a. Whittington Produce ("Whittington Produce"). Thomas Sonner (Sonner's brother), Michelle Smith and Lewis Hawes, appellants, were passengers in the vehicle. At the time of the accident, Sonner was using the company van for his own personal purposes. No other vehicle was involved in the crash. Whittington Produce was owned and operated as a partnership by Terry Whittington and William Brinley. At the time of the accident, Whittington Produce was insured under a policy of motor vehicle liability insurance issued by Continental Insurance Company ("Continental"), appellee.1 The policy contained a section known as an "omnibus clause" required by R.C. 4509.51(B).2 Specifically, Section II(A)(1) of the policy defined the "insureds" as follows: "a. You [Whittington Produce] for any covered 'auto'. "b. Anyone else while using with your [Whittington Produce's] permission a covered 'auto' you own, hire or borrow * * *." (Emphasis added.) The vehicle involved in the accident was a covered "auto" within the meaning of the policy. On October 13, 1989, Continental filed an action for declaratory judgment in the Court of Common Pleas of Darke County, naming, as defendants, Terry Whittington, William Brinley, Whittington Produce, Sonner, Michelle Smith, Lewis Hawes, Thomas Sonner and others. In the complaint, Continental alleged that Sonner did not have permission to use the company van for personal purposes at the time of the accident. Therefore, Continental sought a declaration that no coverage was available under the terms of the policy because Sonner was not an "insured" at the time of the accident. Further, Continental sought a declaration that it owed no duty to defend or indemnify Sonner or Whittington Produce in any subsequent tort action brought by anyone claiming to have suffered injury or damage as a result of the accident. The following relevant matters were elicited upon discovery. Whittington Produce is a business that transports live poultry from farms to other locations. As part of the business operation, employees are transported to and from work in company-owned vehicles. On July 5, 1989, at approximately 5:00 or 5:30 p.m., Terry Whittington gave Sonner express permission to use a company van to drive several employees home from work. Whittington instructed Sonner to keep the van overnight, to park the van in front of his (Sonner's) house, and to pick up the employees the following morning to return them to work. Whittington never told Sonner not to use the van for personal purposes. Whittington Produce had no written policy prohibiting personal use of company vehicles. However, according to Whittington, all employees knew that personal use of company vehicles was strictly prohibited. On the evening of July 5, 1989, Sonner drove the employees to their homes in accordance with Whittington's instructions. He then drove home and parked the van. Later, he drove the van to a friend's house. There, he decided to take the vehicle out on the town for the evening. He was joined by Thomas Sonner, Hawes, Smith, and others. The accident occurred while Sonner was using the van for his own social and personal benefit. In his deposition, Sonner admitted that his personal use of the van at the time of the accident exceeded the scope of permission given to him by Whittington. He testified that company vehicles were ordinarily not used by employees for personal pursuits. Following the accident, Sonner was not fired or otherwise disciplined for having used a company vehicle for personal purposes. Thomas Sonner and Lewis Hawes were deposed on August 22, 1990. Both men had worked for Whittington Produce. Thomas Sonner testified that prior to July 5, 1989, several Whittington Produce employees had regularly used company vehicles for personal purposes. He further testified that Whittington normally allowed employees to ride around or "cruise" in company vehicles after working hours. Hawes testified that he knew of no policy prohibiting personal use of company vehicles. Hawes also testified that Terry Whittington never seemed to care whether company vehicles were used by employees for personal purposes. Continental filed a Civ.R. 56 motion for summary judgment, arguing that Sonner had exceeded the scope of permission granted to him by Whittington to use the van for a limited business purpose. Therefore, Continental claimed that it was entitled to a declaration that Sonner was not an "insured" at the time of the accident and, thus, no coverage was available under the terms of the policy. Continental also argued that Sonner's use of the vehicle at the time of the accident represented a "complete deviation" from the scope of permission originally granted to him by Whittington. In this regard, Continental claimed that no coverage was available under the so-called "minor deviation" rule of Gulla v. Reynolds (1949), 151 Ohio St. 147, 39 O.O. 2, 85 N.E.2d 116. The "minor deviation" rule states that where the use of a vehicle deviates slightly from the purpose for which permission was initially granted, a standard omnibus clause in a liability insurance policy will be interpreted to extend coverage, but if the use represents a gross deviation from the scope of permission given, no coverage is to be afforded. See Frankenmuth Mut. Ins. Co. v. Selz (1983), 6 Ohio St.3d 169, 171, 6 OBR 227, 229, 451 N.E.2d 1203, 1204, and Erie Ins. Group v. Fisher (1984), 15 Ohio St.3d 380, 383, 15 OBR 497, 500, 474 N.E.2d 320, 323-324. Smith, Hawes and Thomas Sonner (collectively referred to as "appellants") opposed the motion, urging that questions of fact remained to be determined as to whether Sonner had implied permission to use the vehicle for personal purposes at the time of the accident.

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Bluebook (online)
1994 Ohio 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-ins-co-v-whittington-ohio-1994.