Edgar T. Weekes v. Atlantic National Ins. Co., California State Auto Association v. Atlantic National Ins. Co., Atlantic National Ins. Co. v. California State Auto Association

370 F.2d 264, 1966 U.S. App. LEXIS 3969
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 20, 1966
Docket20245
StatusPublished
Cited by38 cases

This text of 370 F.2d 264 (Edgar T. Weekes v. Atlantic National Ins. Co., California State Auto Association v. Atlantic National Ins. Co., Atlantic National Ins. Co. v. California State Auto Association) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edgar T. Weekes v. Atlantic National Ins. Co., California State Auto Association v. Atlantic National Ins. Co., Atlantic National Ins. Co. v. California State Auto Association, 370 F.2d 264, 1966 U.S. App. LEXIS 3969 (9th Cir. 1966).

Opinion

370 F.2d 264

Edgar T. WEEKES et al., Appellants,
v.
ATLANTIC NATIONAL INS. CO., Appellee.
CALIFORNIA STATE AUTO ASSOCIATION et al., Appellants,
v.
ATLANTIC NATIONAL INS. CO., Appellee.
ATLANTIC NATIONAL INS. CO., Appellant,
v.
CALIFORNIA STATE AUTO ASSOCIATION et al., Appellees.

No. 20245.

United States Court of Appeals Ninth Circuit.

December 20, 1966.

Robert G. Begam, of Langerman, Begam & Lewis, Phoenix, Ariz., for appellant and appellee Weekes.

John J. O'Connor, III, of Fennemore, Craig, Allen & McClennen, Phoenix, Ariz., for appellants and appellees California State Auto Ass'n Inter-Ins. Bureau and Samuel Rotanzi.

Mark Wilmer, of Snell & Wilmer, Phoenix, Ariz., for appellee and appellant Atlantic Nat. Ins. Co.

Before MERRILL, KOELSCH and DUNIWAY, Circuit Judges.

DUNIWAY, Circuit Judge:

In this action for declaratory relief, in which jurisdiction is based upon diversity of citizenship, there are three appeals. The action was begun by Atlantic National Insurance Co. (Atlantic). The defendants are California State Automobile Association Inter-Insurance Bureau (California), Samuel Rotanzi (Rotanzi) and Edgar T. Weekes and Catherine H. Weekes, husband and wife, (the Weekes). The facts are not disputed, and the court entered a summary judgment, from various parts of which the Weekes, California and Rotanzi, and Atlantic appeal.

The action arose out of an automobile accident occurring in Arizona. Rotanzi rented a car from Hertz Corporation. There was a collision between that car, driven by Rotanzi, and a car owned by the Weekes. For the purposes of this case, it is stipulated that at the time, Rotanzi was under the influence of intoxicating liquor. The accident occurred on April 20, 1961. On June 26, 1961, the Weekes filed an action in the federal district court claiming personal injury damages exceeding $160,000. In February, 1963, the parties agreed to hold that action in abeyance, to await the outcome of a declaratory judgment action to be filed thereafter. On March 22, 1963, Edgar Weekes filed suit in Arizona Superior Court against Rotanzi, claiming damage to his car; the present suit which is the declaratory judgment action that had been agreed upon, was filed by Atlantic about October 1, 1963, issue finally being joined upon the second amended complaint filed November 20, 1964. The car damage action was settled in October, 1963, and a stipulation was filed in that action on October 22, 1963. Pursuant to that stipulation, the car damage action was dismissed with prejudice upon payment to Weekes of $1,101.52, the exact amount prayed for in the complaint. The purpose of the present suit was to determine questions of insurance coverage. It was on file but had not come to issue when the property damage action was settled.

Atlantic had issued a policy of insurance to Hertz Corporation, affording liability insurance to persons leasing Hertz cars. In this action, in its second amended complaint, Atlantic claimed:

1. that the disposition of the car damage action makes it a bar to the personal injury action;

2. that the coverage issued by California to Rotanzi is primary and Atlantic's coverage, if any, is secondary, and

3. that coverage was not afforded to Rotanzi because the policy excludes coverage if the accident occurs "while [the car is] being operated * * * by any person under the influence of intoxicants * * *," or, alternatively, that this exclusionary clause should at least reduce Atlantic's liability to a maximum of $10,000 per person and $20,000 per accident. The policy limits are $100,000 and $300,000.

California had issued a policy of liability insurance to Rotanzi. Both California and Rotanzi asserted: (1) that the disposition of the car damage action makes it a bar to the personal injury action; (2) that Atlantic's coverage is primary, or, alternatively, that the two insurers should participate in proportion to the respective limits of their policies; and (3) that Atlantic's liability is neither excluded nor limited by its exclusionary clause.

The Weekes asserted that the disposition of the car damage case does not make it a bar to the personal injury action, that Atlantic's liability is neither excluded nor limited, that California is also liable for Rotanzi's conduct, and that both Atlantic and California should be required to pay the full amount, up to their full policy limits, of the Weekes' personal injury claims.

All parties moved for summary judgment. The court's judgment on these motions is to the following effect (the numbering follows the numbering in the judgment):

1. The disposition of the car damage action does not make it a bar to the personal injury action.

2. A. Coverage of Rotanzi by Atlantic's policy is not excluded.

B. The limits of Atlantic's coverage of Rotanzi are $10,000 for one injury, $20,000 for one accident.

C. Atlantic's coverage is primary.

D. California's coverage is excess.

The Weekes appeal from paragraph 2B: Atlantic appeals from paragraphs 1, 2A, 2C, and 2D; California and Rotanzi appeal from paragraphs 1 and 2B. We consider these appeals according to their subject matter.

1. The effect of the settlement of the car damage case.

An affidavit submitted in behalf of the Weekes, in support of their motion for summary judgment, shows that in February, 1963, about two years after the personal injury action was filed, the parties agreed that it be "held in abatement" pending disposition of a declaratory judgment action to be filed. In March, 1963, without the knowledge of the attorney who represented the Weekes in the personal injury action, Mr. Weekes, through another attorney, filed the car damage action. Counsel for Mr. Weekes in the car damage case was retained by Allstate Insurance Company. This was a "subrogation" action. Allstate, however, was not named as a plaintiff. The terms of its subrogation rights, if any, are not stated. It does not appear that Allstate paid for the damage to the car, or that Weekes assigned his car damage claim to Allstate, or whether the Allstate policy required that he do so. That policy is not in the record.

The present declaratory judgment action was filed October 1, 1963. Atlantic is represented by different counsel from counsel who were acting for it as Rotanzi's counsel in both the car damage and personal injury actions. During October, 1963, counsel for both sides in the car damage action agreed to settle and stipulated to its dismissal, with prejudice. An order to that effect was entered October 22, 1963. Not until October 26 did the attorney representing Weekes in the personal injury action learn of this stipulation and dismissal. He learned of it when Weekes brought him a settlement draft containing a full release. The attorney advised Weekes not to sign. After some correspondence with Atlantic's attorney and the attorney chosen by Allstate to represent Weekes in the car damage case, a new draft, not containing the release, was issued and Weekes' counsel in the personal injury case advised Weekes to accept it, which he did.

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Bluebook (online)
370 F.2d 264, 1966 U.S. App. LEXIS 3969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edgar-t-weekes-v-atlantic-national-ins-co-california-state-auto-ca9-1966.