Lieberman v. Aetna Ins. Co.

249 Cal. App. 2d 515, 57 Cal. Rptr. 453, 1967 Cal. App. LEXIS 2254
CourtCalifornia Court of Appeal
DecidedMarch 16, 1967
DocketCiv. 29014
StatusPublished
Cited by10 cases

This text of 249 Cal. App. 2d 515 (Lieberman v. Aetna Ins. Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lieberman v. Aetna Ins. Co., 249 Cal. App. 2d 515, 57 Cal. Rptr. 453, 1967 Cal. App. LEXIS 2254 (Cal. Ct. App. 1967).

Opinion

FORD, P. J.

Having obtained a judgment by default against Lawrence Silberman for damages arising out of an automobile accident, the plaintiff sued the defendant Aetna Insurance Company, the insurer of the owner of the auto *518 mobile driven by Silberman, to recover the amount of the judgment. By cross-complaint, Aetna sought to have the default judgment set aside. The trial court rendered judgment in favor of Aetna, and the plaintiff has appealed.

The findings of fact were in part as follows (stated in sequence) : 1. On August 24, 1960, Cinesound Company was the owner of an automobile which, while being operated by Silberman in the course and scope of his employment with Cine-sound Company, was involved in an accident in which the plaintiff, Anna Lieberman, was injured. 2. Silberman was an additional insured under the policy of liability insurance written by Aetna. 3. He was served with a summons and complaint in the action brought by Mrs. Lieberman against him and Cinesound Company. 4. Silberman’s default was taken, and a judgment dated September 7, 1961, was rendered against him and in favor of Mrs. Lieberman in the amount of $5,345.75, together with costs. That judgment was entered on September 11, 1961. 5. The failure “to enter answer in behalf of Lawrence Silberman and default judgment taken against him was due to an extrinsic mistake of fact which prevented a presentation of defense in his behalf.” 6. The plaintiff and cross-defendant “willfully and with intent refrained from proceeding in her action to enforce the rights under the default until defendant and cross-complainant’s rights were barred by lapse of time under Section 473 of the Code of Civil Procedure of the State of California and did lull defendant and cross-complainant into a false sense of security.” 7. Silberman has a valid defense in the action brought against him by Mrs. Lieberman, “but that due to the inability to present a defense in behalf of Lawrence Silberman in the action . . . defendant and cross-complainant Aetna Insurance Company has suffered injuries and damages by virtue of the judgment which it is obligated to pay by the terms of the policy covering their additional assured, Lawrence Silberman.” 8. On August 30, 1960, Aetna knew that Silberman was an employee of Cinesound and was in the course and scope of his employment at the time of the accident. 9. Neither Aetna nor its agents knew of the service of the summons and complaint upon Silberman until after September 7, 1961. 10. Such lack of knowledge was not due to negligence on the part of Aetna or its agents. 11. On or about September 7, 1960, the attorney for Mrs. Lieberman knew that the interests of Silberman and Cinesound were the same with respect to the accident and that both were insured under a policy of liability insurance issued by Aetna to Cinesound. *519 12. On or about August 28, 1960, Aetna, acting through its attorneys, served and filed an answer on behalf of Cinesound in the action brought by Mrs. Lieberman in which answer it was denied that Silberman was driving the automobile with the permission of his employer, Cinesound, or that he was an agent acting in the scope of his employment at the time of the accident. 13. On or about November 1, 1961, Aetna, acting through its attorneys, filed a motion to set aside the default of Silberman, together with a proposed answer on behalf of Silberman wherein it was denied that he was driving the automobile with the permission of his employer or that he was in the course of his employment at the time of the accident.

In the judgment it was decreed that the default and the default judgment be vacated and set aside and that defendant Lawrence Silberman be allowed twenty days after the judgment in the present case should become final within which to plead in the action brought by Mrs. Lieberman against him.

It is necessary to review the evidence to determine whether there was any basis in fact for the equitable relief granted to Aetna. Ewald E. Mueller, called as a witness on behalf of Aetna, testified that he was formerly an employee of Aetna. A report of the anticipated claim of Anna Lieberman against Cinesound Company “came in in the usual manner from the agent.” The agent was Beggs. 1 Mr. Mueller further testified: “Well, by that I meant the insured notified the agent; and the agent, in turn, notified the claim department of the Aetna Insurance Company.” The original report was a brief letter dated December 21, 1960, from the agent enclosing a copy of the summons and complaint. He interpreted the letter as meaning that one summons was enclosed. His frame of mind was that only the named insured had been served; he had no knowledge of any other service. He sent the summons and the complaint to Aetna’s attorneys with a letter dated December 22, 1960, stating that service had been made on Aetna’s assured on an unknown date. At no time prior to September 7, 1961, did it come to Mr. Mueller's attention that service of the summons and complaint had been made upon Mr. Silberman.

*520 On cross-examination Mr. Mueller said that the letter from Beggs did not designate upon whom the summons and complaint had been served. He knew that the caption and contents of the complaint referred to two defendants, Cinesound Company and Silberman. As he recalled, he called Beggs and ascertained that service had been made on the named insured.

It was stipulated that six days after the accident (which occurred on August 24, 1960) “it was clear that Mr. Silberman was in the course and scope of his employment at the time of the accident, ’ ’ that the vehicle was owned by the named insured, and that “obviously” there was “a policy coverage for the driver.”

Mr. Mueller further testified that after he learned of the default judgment he made inquiry of the Beggs office as to any letter of transmittal from the insured. Later an employee of that office told him that she had found a letter. That letter “stated specifically that both the insured and the driver had been served, contrary to what the agent’s letter of December 21 said. ’ ’ It was the letter which the insured sent to Beggs in transmitting the summons and complaint.

Jack Bi. Berger, Mrs. Lieberman’s attorney, was called as a witness by the defendant and cross-complainant, Aetna, pursuant to the provisions of section 2055 of the Code of Civil Procedure. He testified that he had represented Mrs. Lieberman over a period of years. On the day of the accident, or within a few days thereafter, he was contacted by her husband. Mr. Berger called Cinesound for the purpose of obtaining a description of the car and the license number. When the action was filed he furnished two copies of the summons and complaint which were served on Cinesound and Mr. Silberman. Sometime before January 17, 1961, he requested the entry of default. Prior to that time Mr. Berger had two conversations with Mr. Nelson, a representative of Aetna, the first conversation being shortly after he had been contacted by Mr. Lieberman. The second conversation was either in October or November, 1960, before the action was filed. Prior to the taking of the default Mr. Berger did not advise Aetna, its agents or attorneys, that Mr. Silberman had been served. In response to an inquiry as to why he waited until six months after the entry of the default before he sought to obtain a judgment against Silberman, Mr.

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Bluebook (online)
249 Cal. App. 2d 515, 57 Cal. Rptr. 453, 1967 Cal. App. LEXIS 2254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lieberman-v-aetna-ins-co-calctapp-1967.