Seals v. Morris

423 So. 2d 652
CourtLouisiana Court of Appeal
DecidedOctober 12, 1982
Docket13405, 13406
StatusPublished
Cited by18 cases

This text of 423 So. 2d 652 (Seals v. Morris) 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
Seals v. Morris, 423 So. 2d 652 (La. Ct. App. 1982).

Opinion

423 So.2d 652 (1982)

Shellie J. SEALS
v.
Eugene MORRIS, et al.
Sylvester L. HARRY
v.
Eugene MORRIS, et al.

Nos. 13405, 13406.

Court of Appeal of Louisiana, First Circuit.

October 12, 1982.
Rehearing Denied December 16, 1982.

*654 Jim W. Richardson, Jr., Bogalusa, for plaintiff-appellant.

John N. Gallaspy of Gallaspy & Paduda, Bogalusa, for Southern Farm Bureau Cas. Ins. Co.

John W. Anthony of Talley, Anthony, Hughes & Knight, Bogalusa, for Eugene Morris and Southeast Fidelity Ins.

John J. Hainkel, Jr. of Porteous, Toledano, Hainkel & Johnson, New Orleans, for U.S. Fidelity & Guaranty Co.

Before LOTTINGER, COLE and CARTER, JJ.

COLE, Judge.

FACTS

On April 24, 1976, defendant, Eugene Morris, was driving down a dirt lane, approaching an intersection with "Old River Road," also known as La. Highway 1071. Morris was moving at about ten miles per hour and was preparing to stop for the intersectional stop sign when he noticed a "little green snake" on his shoulder. Frightened by the unexpected presence of the snake, Morris lost control of his vehicle and proceeded into the intersection without stopping. His truck collided with a vehicle being driven by plaintiff, Shellie J. Seals. Plaintiff, Sylvester L. Harry, was a passenger in the Seals automobile.[1]

PROCEDURE

Shellie Seals filed suit against these parties: Eugene Morris and his insurer, Southeastern Fidelity Insurance Company; the insurers of Morris' principal (Mac's Timber Co., Inc.), United States Fidelity and Guaranty Company and Fidelity and Guaranty Insurance Underwriters, Inc.; and his own uninsured motorist carrier, Southern Farm Bureau Casualty Insurance Company.[2] Sylvester Harry filed suit against the same parties and named Shellie Seals as an additional defendant. Southern Farm responded with a demand against Morris and Southeastern, seeking reimbursement for sums advanced to Seals and Harry for medical expenses.[3] The two suits were consolidated for trial.

The trial court found Morris to be liable and rendered judgment in favor of Southern Farm and against Morris and Southeastern for the medical expenses. Judgment was further rendered in favor of both plaintiffs against Morris, Southeastern and Fidelity. Southeastern, Morris, Fidelity and Seals appealed.

On appeal, this court reversed the judgment of the trial court, finding Morris to be free from liability due to the "unavoidable or inevitable accident" doctrine. Plaintiffs were granted writs by the Supreme Court. On original hearing the Supreme Court reversed the judgment of this court, holding Morris liable on the basis of his "non-negligent fault." On rehearing the court reaffirmed its prior finding of liability but concluded Morris had indeed been negligent in parking his truck (with windows down) in an area known to be inhabited by snakes, and in his rather extreme reaction when he discovered the snake. The court ordered the trial court judgment be reinstated and remanded the case to this court for a review of the issues of damages and insurance coverage.

*655 ISSUES RAISED

Appellants, Morris and Southeastern, raise three issues to be considered in this remand. First, they argue the Fidelity policy provides coverage under the facts of this case. Second, they contend the damages awarded by the trial court were excessive. Third, they argue Southern Farm has waived its right to be reimbursed for the medical expenses because the judgment granting reimbursement was reversed by the Court of Appeal and Southern Farm did not seek writs.

Fidelity Coverage

In order to decide the Fidelity coverage issue, certain background information must be set forth. Defendant, Eugene Morris, was a "logger" by trade and worked as an independent contractor for Mac's Timber Company of Sandy Hook, Mississippi. Mac's Timber paid Morris on the basis of the amount of wood hauled and deducted money sufficient to pay for liability insurance on Morris' truck. The 1970 2-ton pulpwood truck was listed on the Fidelity policy as a covered vehicle under the "hired automobile" endorsement. The endorsement states the insurance with respect to owned automobiles would also apply to hired automobiles, subject to certain provisions.

Certain definitions are significant here.

A hired automobile is defined as follows:

"`hired automobile' means an automobile not owned by the named insured which is used under contract in behalf of, or loaned to, the named insured, provided such automobile is not owned by or registered in the name of (a) a partner or executive officer of the named insured or (b) an employee or agent of the named insured who is granted an operating allowance of any sort for the use of such automobile."

The hired automobile schedule states the purpose of use was "commercial." We quote from the policy:

"`Commercial' means use principally in business occupation of the Named Insured as stated in the declarations including occasional use for personal pleasure, family and other business purposes." (Underlining by the court.)

Fidelity argues they did not provide coverage to Morris or his vehicle for several reasons. First, they argue Morris' truck was not a "hired vehicle" on the date of the accident because it was not being used "under contract in behalf of, or loaned to" the named insured. Morris contends his truck was being used for pleasure on the date of the accident and was expressly covered under the commercial use definition quoted above, and we agree.

Fidelity next contends that Eugene Morris, as owner of the hired vehicle, was excluded from coverage. They base the latter argument on the following policy definitions.

"B. Persons Insured. The `Persons Insured' provision applies to the insurance afforded by this endorsement, except that
(1) in paragraph (c) thereof the words `an owned automobile or a temporary substitute automobile' are amended to read `an owned automobile, a temporary substitute automobile or a hired automobile'; and
(2) neither the owner nor the lessee (of whom the named insured is a sub-lessee) of a hired automobile, nor any agent or employee of any such owner or lessee, is an insured." (Emphasis added.)

The trial court interpreted the owner exclusion to apply only when the hired automobile was hired without its owner, i.e., the named insured hired the automobile and used its own employee or some other person to drive the vehicle. Plaintiffs, Morris, and Southeastern, all argue any other interpretation would be absurd because if the owner of the truck in this case is not an insured then there is no reason for him to be paying an insurance premium for coverage.

The hired automobile owner exclusion has been the subject of several lawsuits and has been recognized as valid in certain instances not factually apropos to the instant case. See Bruno v. American Employers Insurance Company, 164 So.2d 63 (La.App. 4th Cir.1964), writ refused 1964; Johnson v. *656 Royal Indemnity Co., 206 F.2d 561 (5th Cir. 1953); Gonzalez v. National Surety Corporation, 266 F.2d 667 (5th Cir.1959).

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Bluebook (online)
423 So. 2d 652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seals-v-morris-lactapp-1982.