State Farm Fire & Casualty Co. v. Workers' Compensation Appeals Board (16 Cal. 4th 1187, 1997)

Opinion

MOSK, J.

Patrick A. Leonard, Jr., filed a claim for workers’ compensation benefits after he was injured while employed by his father, Patrick A. Leonard, Sr., to perform repairs on a vacant residential property. Leonard, Sr., was insured under a policy of comprehensive personal liability insurance (hereafter the policy), issued by State Farm Fire and Casualty Company (hereafter State Farm), that included an endorsement covering workers’ compensation benefits for so-called “residence employees,” defined in the policy as employees who “perform[] duties ... in connection with the maintenance or use of the residence premises.”

This case presents the question whether Leonard, Jr., is a covered employee under the workers’ compensation law and the State Farm policy. We conclude that the answer is yes. Accordingly, we reverse the judgment of the Court of Appeal, which responded in the negative.

I.

In January 1989, Leonard, Sr., and his wife purchased a homeowners policy from State Farm. The policy included coverage for comprehensive personal liability and included an “Additional Coverage Endorsement” for workers’ compensation benefits with respect to “residence employees.”

The policy defines “residence employee” as “an employee of an insured who performs duties, including household or domestic services, in connection with the maintenance or use of the residence premises. This includes employees who perform similar duties elsewhere for [the insured]. This does not include employees while performing duties in connection with the business of an insured.”

The “Additional Coverage Endorsement” states that State Farm agrees, with respect to “residence employees,” as follows; “Under Coverage I [U To pay when due all benefits required of an insured by the California Workers’ Compensation Law; and [‘JD Under Coverage II [