Continental W. Ins. Co. v. James Black, JJ Bugs, Ltd.

Keizer Trailer Sales, Inc., which was insured by Continental Western Insurance Company (CWIC), sold three trailers to James Black. The installment purchase agreement stated that Keizer would remain the owner of the trailers under the purchase price was paid in full. Black was subsequently involved in an accident while pulling a Keizer trailer that resulted in one fatality and multiple injuries. Wrongful death and negligence claims were filed against Black and his business. CWIC filed a complaint for declaratory judgment seeking a declaration that the commercial and umbrella policies it issued to Keizer on the trailer involved in the accident did not provide coverage for the claims arising from Black’s accident. The district court ruled against CWIC, concluding that Black was insured under the policies’ omnibus clauses because he was driving a vehicle owned by Keizer with Keizer’s permission. The Supreme Court affirmed, holding that because Keizer retained ownership of the trailers, and because Black’s use of the trailers was with Keizer’s permission, coverage was available under the omnibus clauses of Keizer’s CWIC policies. View "Continental W. Ins. Co. v. James Black, JJ Bugs, Ltd." on Justia Law