American Continental Insurance v. C & Z Timber Co.

Appellant C & Z Timber Co., Inc., appeals from a judgment entered after the granting of summary judgment in favor of respondent American Continental Insurance Company. The trial court granted summary judgment on the first cause of action of respondent’s complaint for declaratory relief. The trial court ruled as a matter of law that respondent was entitled to the benefit of an exclusionary clause contained in an insurance policy issued by it, allowing it to escape indemnifying appellant, its insured. For the reasons stated below, we affirm the judgment.

Respondent filed this declaratory relief action on August 13, 1985, seeking to establish that it was not obligated under its policy to cover the property damage loss to an aircraft which crashed on January 30, 1985.

Respondent’s complaint set forth eight causes of action for declaratory relief each asserting a separate policy exclusion as a reason for denial of coverage. Respondent’s first cause of action sought relief on the grounds that the policy excluded coverage for flights for which a charge was made and that the plane had been carrying a paying passenger at the time of the crash. Appellant’s answer to the complaint…