Little v. Safeguard Insurance Company

137 So. 2d 415
CourtLouisiana Court of Appeal
DecidedJanuary 29, 1962
Docket474
StatusPublished
Cited by17 cases

This text of 137 So. 2d 415 (Little v. Safeguard Insurance Company) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little v. Safeguard Insurance Company, 137 So. 2d 415 (La. Ct. App. 1962).

Opinion

137 So.2d 415 (1962)

Sam LITTLE, Individually and on Behalf of his Minor Children, Johnny and Judy Little et al., Plaintiffs and Appellees,
v.
SAFEGUARD INSURANCE COMPANY et al., Defendants and Appellants.

No. 474.

Court of Appeal of Louisiana, Third Circuit.

January 29, 1962.
Rehearing Denied February 21, 1962.
Certiorari Denied March 28, 1962.

*416 Hall, Raggio & Farrar, by R. W. Farrar, Jr., Lake Charles, for defendants-appellants.

Nathan A. Cormie and Fred R. Godwin, by Nathan A. Cormie, Lake Charles, for plaintiffs-appellees.

Before TATE, SAVOY and CULPEPPER, JJ.

CULPEPPER, Judge.

On December 31, 1958, Ray Karl Johnson was killed in an automobile accident, when the vehicle he was driving alone collided with a 1955 Chevrolet, driven by Sam Little and occupied by the minor passengers, Johnny Little, Judy Ann Little, Frances Gail Welch and Sandra Welch. Sandra Welch was killed instantly and the other occupants of the latter car received injuries of varying severity. At the time of this accident, Johnson was returning to Houston, Texas, from Miami, Florida in a 1958 Ford Tudor Sedan, which was owned by Mrs. Billy Gene Formby of Houston, Texas, and insured by Safeguard Insurance Company. (Although Mrs. Formby's subsequent married name was Barclay, she will be referred to hereinafter by her former name only.)

Before his death, Johnson was engaged, with one Fred Baum, in the business of placing, maintaining and servicing vending machines for cigarettes, gum, etc. This operation was domiciled in Houston, Texas, but was also carried on in numerous other southern Texas cities. These vending machine locations were organized into routes which were traveled periodically. For use in this business, a 1958 Ford Courier panel truck was purchased and insured in the names of both Fred Baum and Ray K. Johnson by the Camden Fire Insurance Association, which policy was in effect on the date of the subject accident. On about December 8, 1958, this Ford Courier panel truck had been involved in an accident while being driven by Irving Camp, an employee of the vending machine business, and it was placed in a garage for repairs on December 11, 1958, where it was still located when the subject accident occurred.

Suit was filed against both Safeguard Insurance Company and the Camden Fire Insurance Association by Sam Little, individually, and on behalf of his minor children, Johnny and Judy Ann, by James G. Welch on behalf of his minor daughter, Frances Gail Welch, and by Benny B. Welch for the death of his minor daughter, Sandra Welch.

Plaintiffs alleged that the policy of liability insurance issued by the Camden Fire Insurance Association to cover the 1958 Ford Courier panel truck, in the names of *417 Fred Baum and Ray K. Johnson, extended to and provided coverage on the 1958 Ford Tudor Sedan, being driven by Johnson at the time of the subject accident, by virtue of a provision in the Camden policy providing for such coverage in favor of a "temporary substitute automobile." Defendants denied that the said 1958 Ford Tudor Sedan met the characteristics of a "temporary substitute automobile" but the jury found in favor of the plaintiffs on this issue.

Damages were assessed by the jury, and judgment rendered against the defendants, Safeguard Insurance Company, and the Camden Fire Insurance Association, in favor of the plaintiffs in the following total amounts:

a) For Sam Little individually, for his personal injuries, $27,500, and for his property damage, $1,000
b) For Sam Little for bodily injury and for expenses incurred on behalf of Johnny Little the sum of $6,800
c) For Sam Little for bodily injury and expenses incurred on behalf of Judy Little the sum of $3,500
d) For James G. Welch in behalf of his minor daughter, Frances Gail Welch, the sum of $2,100
e) For Benny B. Welch, for the death of his daughter, Sandra Welch, age 14, the sum of $17,250

The defendant, Camden Fire Insurance Association, has appealed, contending that the extension of its coverage to the 1958 Ford Tudor Sedan involved in the subject accident was erroneous and alternatively that the quantum of damages awarded to the plaintiffs was excessive, particularly with respect to the award to Benny B. Welch for the death of his minor daughter, Sandra Welch. Plaintiffs have not answered the appeal.

The primary question presented by this appeal is whether or not the 1958 Ford Tudor Sedan, owned by Mrs. Billy Gene Formby, and driven by Ray Karl Johnson was, on December 31, 1958, a temporary substitute automobile for the 1958 Ford Courier panel truck, owned by Johnson and Fred Baum, under the provisions of Camden's liability insurance policy. The said policy contained a provision which extended the liability coverage of the policy to an automobile other than that described in the policy itself, under paragraph IV(a) (3) as follows:

"Temporary Substitute Automobile —under coverages A, B and division 1 of coverage C, an automobile not owned by the named insured or his spouse if a resident of the same household, while temporarily used as a substitute for the described automobile when withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction;"

The principal facts pertinent to this issue are that in 1956 Ray K. Johnson and Fred Baum entered the vending machine business, with Baum furnishing most of the capital, and a location out of which to operate, and Johnson furnishing his efforts and experience in the vending machine business. At first Johnson did all the work of maintaining and servicing the machines and obtaining new locations. The business gradually expanded and in about January of 1957 they hired their first employee, Irving Camp, who started out on a part time basis servicing some of the machines. The business continued to grow and expand until by the early part of 1958 Irving Camp had become a full time employee, and likewise a part owner of some of the new routes. By June of 1958 the vending machine routes were being completely serviced by Irving Camp only, and Johnson began to devote most of his time to the operation of a lounge and other interests. At first Irving Camp was using an old 1948 Dodge or De-Soto to service the routes, but this became inadequate and consequently Johnson and Baum purchased the 1958 Ford Courier panel truck for use by Camp in servicing the *418 vending machine routes. However, this automobile, which will hereinafter be referred to as the Courier, was also used by Johnson when it was not being used by Camp as a routeman. In describing the extent to which he used the Courier, Irving Camp testified that he usually left the office in the Courier about 9:30 in the morning to service the routes and he would usually get back at 5:30 or 6:00 o'clock in the afternoon. Camp worked an average of five days a week. However, Camp explained that he owned only one personal car and two or three times a week his wife would want to use it so she would drive him to work where he would pick up the Courier and then that night he would drive the Courier back home where it would remain over night. When Camp was not using the Courier in the manner described it was used frequently by Johnson as a personal vehicle for pleasure or otherwise. This is clear from the testimony of several witnesses who saw him using the Courier.

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137 So. 2d 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-v-safeguard-insurance-company-lactapp-1962.