The Virginia Supreme Court, reversing a trial court's decision, has ruled that a commercial general liability insurance policy issued to a truck stop and repair garage did not cover a claim alleging personal injuries from a tire being repaired.
The Case
James T. Smith sued Doswell Truck Stop, LLC (“DTS”), the operator of a truck stop that included a gas station/convenience store, a hotel, a repair garage/truck wash, and approximately 24 acres of vacant land in Doswell, Virginia, for injuries he allegedly suffered as a result of a tire explosion.
According to Mr. Smith, he sought to have DTS repair or replace a tire on his tractor-trailer. During the course of the repair, Mr. Smith asserted, a DTS employee invited him into the garage area, where the tire was secured within an OSHA-compliant steel cage designed for inflating damaged truck tires.
Mr. Smith alleged that, while he was present, the DTS employee over-inflated the tire, causing it to explode and injuring Mr. Smith.
DTS filed an insurance claim with its commercial general liability insurance carrier, James River Insurance Company. The insurer denied coverage on the basis that DTS's claim was precluded by the auto exclusion in its policy.
DTS went to court, seeking a determination of whether the James River policy covered Mr. Smith's lawsuit.
The parties moved for summary judgment.
For its part, DTS argued that the term “maintenance” in the auto exclusion was ambiguous because it was subject to two meanings: (1) regular repair operations, and (2) a possessory interest other than ownership or use. DTS asserted that both definitions of maintenance were equally possible in the context of the auto exclusion and, therefore, the trial court should adopt the construction that was most likely to effectuate coverage.
The trial court ruled in favor of DTS. It determined that the auto exclusion was ambiguous with respect to the meaning of “maintenance” of an auto.
James River appealed, arguing that the term “maintenance” as used in its policy was not ambiguous.
The James River Insurance Policy
The auto exclusion in the James River insurance policy provided excluded coverage for bodily injury or property damage:
arising out of the ownership, maintenance, use or entrustment to others of any aircraft, “auto” or watercraft.
The Virginia Supreme Court's Decision
The court reversed, finding that the “maintenance” was not ambiguous.
The court then ruled that, given that Mr. Smith's complaint specifically alleged that his injury had occurred when a DTS employee “over inflated the tire so as to cause the tire to explode,” his injury arose out of the maintenance of a vehicle and the auto exclusion applied.
Accordingly, the court concluded, the policy's auto exclusion precluded coverage for Mr. Smith's injury under the policy.
The case is James River Ins. Co. v. Doswell Truck Stop, LLC, No. 180624 (Va. May 16, 2019). Attorneys involved include: For JAMES RIVER INSURANCE COMPANY, Appellant: CARLTON, MARK GREGORY, (ESQ.), FRIEDMAN, ROBERT FOREST, (ESQ.), WELLMAN, STANLEY PAUL, (ESQ.), SOMERVILLE, GEORGE ARNOLD, (ESQ.). For DOSWELL TRUCK STOP, LLC, JAMES T. SMITH, Appellee: MATHESON, MICHAEL GORDON, (ESQ.), HOOE, GREGORY STEPHEN, (ESQ.), O'HERRON, JOHN PAUL, (ESQ.), COLOMBELL, MARK RICHARD, (ESQ.), KENT, DONALD BRADLEY, (ESQ.), LINDENSMITH, MARK STEPHEN, (ESQ.).
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].