Harbor Insurance v. KSCH, Inc.

Plaintiff Harbor Insurance Company appeals from the judgment against it and in favor of defendants KSCH, Inc., Tae Son Won, Ok Pun Won, II Gi Kim, Arthur Beltran and Nam Yong Lee.

Facts

Harbor initiated this action for declaratory relief to obtain a declaration that a policy it issued to Erwin Davis, Inc., doing business as Full Service Car Rental “validly excluded coverage for the underlying claims of damage.”

The trial was before the court sitting without a jury. The action was tried primarily upon stipulated facts. In pertinent part the parties stipulated: “1. That on or about June 12, 1984, Erwin Davis, Inc., dba Full Service Car Rental, leased to Hyun Hyong Um, an automobile for a period of less than six months.

“2. That pursuant to the above-mentioned rental agreement, Full Service Car Rental was a lessor[,] Hyun Hyong Um was the renter (lessee) of the automobile.

“3........................

“4. That on June 17, 1984, the automobile rented to Hyun Hyong Um by Full Service Car Rental was involved in an accident while being driven by Dong Hoon Kim, a permissive user of Hyun Hyong Um .

“5. That on June 17, 1984, there were in effect two policies of liability…