Rice Brothers, Inc. v. Glens Falls Indemnity Co.

263 P.2d 39, 121 Cal. App. 2d 206, 1953 Cal. App. LEXIS 1335
CourtCalifornia Court of Appeal
DecidedNovember 10, 1953
DocketCiv. 8254
StatusPublished
Cited by12 cases

This text of 263 P.2d 39 (Rice Brothers, Inc. v. Glens Falls Indemnity 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
Rice Brothers, Inc. v. Glens Falls Indemnity Co., 263 P.2d 39, 121 Cal. App. 2d 206, 1953 Cal. App. LEXIS 1335 (Cal. Ct. App. 1953).

Opinion

VAN DYKE, P. J.

Plaintiff corporation was engaged in the performance of a grading-and paving contract in Merced which required the use of a number of dump trucks. It owned and used on the work some 10 or 12 trucks and needed more. It made oral arrangements with one Holloway for the use- of two of Holloway’s trucks. They were furnished by Holloway, “fully operated and maintained,” that is, they went to *207 the job with drivers, and Holloway paid the wages of the men, paid for the gasoline and oil consumed and for any repairs that might be necessary. Plaintiff paid Holloway $4.66 an hour per truck. One of plaintiff’s own trucks driven by its own servant damaged a Holloway truck. Plaintiff had the truck repaired at a cost of $947.71. It filed this action against defendant, a corporation engaged in the business of insuring against public liability. Its complaint alleged that on the day the Holloway truck was damaged it was the insured in such a policy issued by defendant corporation and that under that policy defendant agreed to indemnify plaintiff against any liability, within the limits of the policy, “which might arise against plaintiff in favor of any person or persons who should sustain any damage to property by accident by reason of the ownership, maintenance or use by said plaintiff of a motor vehicle”; that on that day a motor vehicle owned and operated by plaintiff had been so negligently and carelessly driven by plaintiff through its employee that it collided with the Holloway truck, damaging that truck in said amount; that after notice and rejection of claim it had paid the amount of the damage to Holloway and that defendant refused to indemnify it against that loss by repayment of the sum paid out. Defendant insurance company denied that the coverage was as alleged and pleaded that the policy contained an exclusion clause which excluded the loss claimed and was in this language : “This policy does not apply . . ., to injury to or damage of property owned by, rented to, in charge of, or transported by the insured.”

The trial court found the allegations of plaintiff’s complaint to be true, the allegations of the answer to be untrue and gave judgment for the amount demanded. The defendant has appealed.

The issues tried called for the consideration of two contracts, one written, the other oral. No evidence was introduced concerning the negotiations for and the execution of the written agreement nor was it claimed to be uncertain or ambiguous in its terms. The only part thereof the application of which was in dispute was the exclusion clause. As to the oral agreement between plaintiff-respondent and Holloway the testimony may be narrated as follows;

Jesse L. Rice, an officer of respondent corporation, testified that the agreement with Holloway was oral; that Holloway agreed to furnish two of his own trucks and more of anyone else’s he could obtain for that purpose “fully *208 operated and maintained, ’ ’ by which was meant that respondent would pay so much for the truck and Holloway would furnish Holloway’s driver, gasoline, oil and repairs; that Holloway hired the driver of the truck which was damaged on the job; that assuming a Holloway driver did not perform his work properly respondent still had no right to discharge him; that there was no difference between the work done by the Holloway trucks and the work being done at the same time by respondent’s trucks; that if respondent had been using a Holloway truck in a way that Holloway did not like, he could have stopped the truck; that Holloway got no percentage of respondent’s contract price on the job; that Holloway could 11 quit any time he wanted”; that Holloway had no special part of the work to do with his dump trucks and all the trucks worked together. All material hauled by a truck was dumped into a moving spreader box, and the trucks dumped in turn as they came up to the box; that Holloway was not obligated to permit his trucks to be used away from the job; that the Holloway trucks were there for use in doing whatever was necessary to be done on the job and this work was in charge of respondent’s superintendent; that Holloway’s drivers, as well as respondent’s drivers, knew the job and were experienced men, so that when they went on the job they knew where they were going to haul from and where they were going to haul to and needed no instructions on those lines, but respondent’s superintendent had the right to direct respondent’s truck drivers who were under his complete control, whereas Holloway’s drivers were not; that Holloway’s drivers were paid once a month; that respondent carried compensation insurance on Holloway’s drivers, but charged the cost back to Holloway; that if a Holloway driver “refused to do the work” respondent would tell Holloway neither the driver nor the truck was wanted any more, but that respondent could not discharge a driver off a Holloway truck; that Holloway did not agree to furnish trucks for any specified period; that Holloway trucks were at all times operated by Holloway drivers who were paid by him; that Holloway could do anything he wanted with his trucks at any time he wanted to, but would get no pay except when his trucks were working on the job; that Holloway had nothing at all to say about the manner or method of doing the work respondent was under contract to perform, though Holloway trucks were actually used in carrying out the contract. No witness other than Rice testified as to the agreement between respondent and Holloway.

*209 The trial court had to determine whether under the contract between respondent and Holloway the damaged Holloway truck was, when the accident happened, owned by, rented to, in charge of, or being transported by respondent. Admittedly it was neither owned by nor being transported by respondent. In determining whether it was rented to or in charge of respondent the trial court was obliged to evaluate the oral contract between respondent and Holloway, and this presented to the trial court primarily a question of fact. The trial court impliedly found that the Holloway truck was neither rented to nor in charge of respondent and therefore that indemnity against respondent’s liability for the damage done to it was within the coverage afforded by appellant’s policy and without the embrace of the exclusions relied upon by appellant. We think the evidence affords substantial support for the court’s conclusions.

A rental of personal property or, as it is phrased in our Civil Code, the “hiring” thereof “is a contract by which one gives to another the temporary possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time.” (§ 1925.) From the narrated testimony the trial court could conclude that under the contract between respondent and Holloway the parties did not intend to give, and did not give, to respondent any possession of the Holloway truck, nor any use of that truck apart from the services rendered by the driver and the truck in combination; that respondent could not break up this combination and be left with a right either to the possession or the use of the truck. The trial court could also conclude that the contract between respondent and Holloway would not put the truck into respondent’s charge and on the contrary that Holloway had purposely reserved to himself complete possession and charge of the truck at all times.

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Cite This Page — Counsel Stack

Bluebook (online)
263 P.2d 39, 121 Cal. App. 2d 206, 1953 Cal. App. LEXIS 1335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-brothers-inc-v-glens-falls-indemnity-co-calctapp-1953.