764 F.3d 981
9th Cir.2014Background
- Van Horn, an injured passenger, was in Watson's car which crashed after Watson lost control.
- Torti, in a second car, removed Van Horn from Watson's smoking, leaking vehicle to render aid.
- Encompass insured Torti; Torti tendered defense to Encompass, which defended her and later settled Van Horn's claims for $4 million.
- Encompass later sued Mid-Century and Coast National for contribution/subrogation for defense/indemnification costs.
- Disputes center on whether Torti's removal of Van Horn constituted 'use' of Watson's car under Mid-Century's and Coast National's policies.
- District Court entered judgment for Mid-Century and Coast National; Encompass appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does unloading a passenger constitute 'use' of a motor vehicle under the policies? | Encompass: unloading is 'use' under Cal. Ins. Code § 11580.06(g). | Mid-Century/Coast National: unloading does not necessarily constitute 'use' absent a nexus to vehicle operation. | Yes; unloading qualifies as 'use' under § 11580.06(g). |
| Is the statutory definition of 'use' applicable to both commercial and non-commercial vehicles? | Encompass: statute defines 'use' broadly to include unloading and applies to these policies. | Mid-Century/Coast National: interpretive scope limited or not uniformly applicable. | The definition applies uniformly; unloading is 'use' of a motor vehicle. |
Key Cases Cited
- Argonaut Ins. Co. v. Transp. Indem. Co., 492 P.2d 673 (Cal. 1972) (the 'use' of a vehicle includes its loading and unloading)
- Travelers Ins. Co. v. Northwestern Mutual Ins. Co., 104 Cal. Rptr. 283 (Cal. Ct. App. 1972) (maintenance and loading/unloading defined as 'use' in context of transportation)
- Scottsdale Ins. Co. v. State Farm Mut. Auto. Ins. Co., Cal. Rptr. 3d 606 (Cal. Ct. App. 2005) (unloading included in 'use' as a matter of law)