Employers Ins. Co. of Alabama v. Cross

226 So. 2d 161, 284 Ala. 505, 1969 Ala. LEXIS 1127
CourtSupreme Court of Alabama
DecidedAugust 21, 1969
Docket8 Div. 307
StatusPublished
Cited by5 cases

This text of 226 So. 2d 161 (Employers Ins. Co. of Alabama v. Cross) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employers Ins. Co. of Alabama v. Cross, 226 So. 2d 161, 284 Ala. 505, 1969 Ala. LEXIS 1127 (Ala. 1969).

Opinion

HARWOOD, Justice.

Leonard Cross and Frank Cross filed a. bill for a declaratory judgment alleging in substance that Employers Insurance Company of Alabama had issued a family combination automobile insurance policy covering a described Ford automobile owned by Leonard Cross, which policy provided casualty coverage to the named insured, and any resident of his household, and any other person using the automobile with the insured’s permission, if within the scope of the permission.

The bill further alleged that Frank Cross was operating the automobile with the permission of the insured, and within the scope [507]*507of such permission, when he was involved in an accident; that as a result of said accident suits were filed against Frank Cross by the three individual respondents named in this proceeding, said suits being pending at the time of the declaratory action.

It is further averred that the respondent Employers Insurance Company contends that its policy of insurance does not cover the legal liability arising out of the accident, and that it is not obligated by the policy to defend said suits, nor to pay any judgment resulting from said suits.

The complainants deny this contention by Employers and allege that the policy does cover the accident, and asserts that as a result of such dispute between the complainants and Employers a valid justiciable controversy exists.

The bill prays that the court find that a justiciable controversy exists, and upon a final hearing will order, adjudge, and decree that said policy covers and protects the complainants in any lawsuits arising as a result of said accident.

The policy in question was attached to and made a part of the bill.

The respondent Employers Insurance Company filed a motion to quash the bill of complaint, and a demurrer. One or more of the individual respondents also filed pleadings, but since they have not joined Employers in this appeal, we see no need to state such procedures by the individual respondents

At a pre-trial hearing the Chancellor overruled Employers’ motion to quash and demurrer. Employers then filed an answer setting up that there was no liability on its part under the policy because of an exclusion provision therein providing that the policy does not apply to bodily injury or damage intentionally caused; that the damages or injuries claimed in the suits against Frank Cross were intentionally caused.

Thereupon, under the provisions of Equity Rule 38, the Chancellor framed certain issues, one being whether Employers was liable under the policy to defend and pay damages up to the policy limits, or was relieved of such liability, because of the exclusion in the policy that it did not apply to injury or damage caused by an intentional act.

The cause came on for hearing, and the jury returned a verdict:

“We the jury, find that the act of Frank Cross was not an intentional act.”

The court thereafter on 16 December 1967, entered a decree in accordance with the verdict and ordered, adjudged and decreed that Employers was liable under the policy to defend the suits brought against the complainants, and to pay any damages up to the policy limits, which might be awarded in said suits.

An application for a rehearing was presented by Employers on 9 January 1968, set for hearing and submission on briefs on 20 January 1968, and was marked filed on that date. This application was denied by an order filed 25 January 1968, no party having submitted a brief as previously requested.

Employers perfected this appeal from the declaratory judgment of 16 December 1967.

Appellant’s assignments of error 1, 2, and 4, assert error in the action of the court in overruling appellant’s motion to quash the summons and complaint, and in overruling appellant’s demurrer to the bill.

Counsel’s arguments under these assignments are to the effect that these actions by the Chancellor were erroneous in that the bill fails to aver that appellee-complainants did not have an adequate remedy at law, and therefore failed to state a justiciable issue.

The latest case cited by appellant in support of his arguments under these assignments is Gambill v. Greenwood, 247 Ala. 149, 22 So.2d 903, published in 1945.

[508]*508None-of the cases cited by counsel for appellant in support of his arguments under these assignments are applicable in that Sec. 167, Tit. 7, Code of Alabama 1940 (Alabama Declaratory Act), was amended in 1947 by adding to Sec. 167 the following sentence:

“The remedy provided for by this article shall not be construed by any court as an unusual or extraordinary one but shall be construed to be an alternative or cumulative remedy.”

Since the 1947 amendment, supra, the fact that some other adequate remedy at law exists to settle the controversy is not a defense in a declaratory action. Alexander City v. Continental Ins. Co., 262 Ala. 515, 80 So.2d 523; Rogers v. Lumbermans Mutual Cas. Co., 271 Ala. 348, 124 So.2d 70.

A declaratory action is a proper method of establishing the rights and status of the parties under a contract of insurance, and if the bill of complaint states the substance of a bona fide justiciable controversy, which should be settled, a cause of action is stated, and demurrers thereto should be overruled. Rogers v. Lumber-mans Mutual Cas. Co., supra. The bill in the present proceedings complies with the above requirements, and the action of the court in overruling the motion to quash, and the demurrer, in the aspects set forth in the arguments under assignments 1, 2, and 4, was proper.

Under assignment of error 3, counsel for appellant has argued that the court erred in overruling the demurrer to the bill on the ground asserting that the bill does not show such relationship of Frank Cross, one of the complainants, to the policy as to afford coverage to Frank Cross.

Counsel has cited no cases in support of this argument. Even so, the bill avers that the policy in question provided casualty coverage for .the automobile owned by Leonard Cross, and any other person using Leonard Cross’ automobile with his permission, and in the scope of the permission. The bill further avers that Frank Cross was so operating the Leonard Cross automobile at the time of the accident. Such averments deny the validity of appellant’s argument under assignment of error No. 3.

Assignment of error 5 asserts error because of the court’s action in overruling an objection to a question propounded to the complainant-appellee, Leonard Cross, as follows: “This is the policy you bought?”

The policy had already been admitted by agreement at a pre-trial hearing. The question related to an undisputed matter and did not, as now contended by appellant, relate to the content of the policy. No merit attaches to this assignment.

Assignment of error 6 is predicated upon the court’s action in sustaining complainant’s objection to the following question propounded to complainant Leonard Cross on cross-examination: “All right, now, at the time of the wreck, Frank’s furniture was not in your house?”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ostrander v. Ostrander
517 So. 2d 3 (Court of Civil Appeals of Alabama, 1987)
CALVERT & MARSH COAL CO., INC. v. Pass
393 So. 2d 955 (Supreme Court of Alabama, 1980)
Employers Insurance Co. of Alabama, Inc. v. Hare
299 So. 2d 243 (Supreme Court of Alabama, 1974)
Ex Parte Jim Dandy Company
239 So. 2d 545 (Supreme Court of Alabama, 1970)
Williams v. Evans
236 So. 2d 680 (Supreme Court of Alabama, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
226 So. 2d 161, 284 Ala. 505, 1969 Ala. LEXIS 1127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employers-ins-co-of-alabama-v-cross-ala-1969.