Citations
- 58 Cal. 2d 142
Full opinion text
PETERS, J.
In this action between two insurance companies, the plaintiff, Interinsurance Exchange of the Automobile Club of Southern California (referred to hereafter as “Exchange”), appeals from a judgment on the pleadings in favor of defendant, Ohio Casualty Insurance Company (referred to hereafter as “Ohio”).
The facts involved are as follows; Effective April 1, 1957, Ohio issued a one-year public liability automobile policy to Helms Pontiae-Cadillae, Inc., covering a certain 1951 Pontiac automobile. To this policy was attached an endorsement, entitled “Garage Liability (Limited Additional Interest) ” which, in defining an “insured” under the policy, contained this exclusion: “The words 'any person or organization legally responsible for the use thereof by any such partner, employee, director, stockholder or family member, ’ shall not be construed to mean, and the benefits of this policy shall not be extended to, any person or organization or the agent, servant or permittee of such person or organization, to which has been relinquished the use or possession of any automobile because such person or organization is a buyer or prospective buyer from the named insured or a customer or prospective customer of the named insured.” Thus, the policy as written, purported to exclude the designated permittees from coverage.
Effective January 28, 1957, Exchange issued a one-year policy of public liability automobile insurance to one Ross M. Evenstad covering his Cadillac.
On September 14, 1957, while both policies were in effect, Evenstad delivered his Cadillac to Helms for the purpose of having it repaired, and Helms loaned to Evenstad the 1951 Pontiac referred to above. On that date Evenstad became involved in an automobile accident while driving the 1951 Pontiac loan car.
Pursuant to an agreement with Ohio, Exchange settled all claims against Evenstad and Helms. Exchange then brought this action for declaratory relief to have determined the rights, liabilities and duties of the insurance companies under the two policies. Ohio’s motion for judgment on the pleadings was granted on the theory that Evenstad was excluded from the coverage of the Ohio-Helms policy under the terms of the garage liability endorsement quoted above.
Had the accident here involved happened just a few days earlier than it did, the parties concede, as they must, that the exclusion in the Ohio policy would have been illegal as against public policy under our decision in Wildman v. Government Employees’ Ins. Co., 48 Cal.2d 31 [307 P.2d 359], It was there held that every automobile liability policy, as a matter of law, covered permissive users, and that any provision in the policy excluding them was illegal. The Ohio-Helms policy, which became effective after the Wildm