Superior Court Grants Corporation's Commercial Liability Insurer's Motion for Summary Judgment Based on Automobile Exclusion
Scottsdale Indem. Co. v. Lloyd, 04C-04-024 THG, 2005 WL 516852 (Del. Super. Ct. Mar. 4, 2005).
A corporation's commercial liability insurer petitioned the court for a determination as to whether the policies automobile exclusion prevented coverage for damages arising from an accident involving one of the corporation's officers. The insurer moved for summary judgment, and the Superior Court found that the automobile exclusion did apply.
Scottsdale Indemnity Company ("SIC") issued a general commercial liability insurance policy to Lynn Lee Village Key Box 5 Operatives, Inc. ("Key Box"). The policy extended coverage to executive officers and directors of the organization when those officers and directors were acting within their duties as officers or directors. The policy included an exclusion for "bodily injury" or "property damage" from "ownership, maintenance, use or entrustment to others of an 'auto' owned, operated by, or rented or loaned to any insured." William Lloyd loaned his automobile to Susan Whetstone, an officer of Key Box. Whetstone was involved in a car accident. She and the driver of another vehicle died in the crash. The estate of the other driver and the passengers of the other car sued Whetstone's estate for negligence, William Lloyd for negligent entrustment, and the officers and directors of Key Box based on the doctrine of respondeat superior. SIC petitioned the court for a determination as to whether Key Box's policy covered any of the Key Box defendants in relation to liability arising out of the Whetstone's accident. The court determined that the automobile exclusion applied, and, thus, there was no coverage of the Key Box defendants. Accordingly, the court granted SIC's motion for summary judgment.
Jason C. Jowers