Interinsurance Exchange v. Smith

Sixteen-year-old Laura Smith (Laura) was involved in an accident while driving her father’s (Smith) Datsun pickup truck. As a result of the accident, Kathy and Richard Field, occupants of the other car, sued Laura, her father and her mother, Mary Eva Klinger (Klinger) for damages.

Klinger’s automobile liability insurance carrier, Interinsurance Exchange of the Automobile Club of Southern California (Interinsurance) sought declaratory relief contending Klinger’s policy did not provide coverage for Laura because the pickup truck was a “nonowned” automobile available for Laura’s regular use and therefore excluded under the terms of the policy. After an evidentiary hearing the trial court concluded the truck was available for Laura’s regular use and the Klinger policy expressly excluded the pickup as an “additional assured automobile.” The Smiths and Klinger appeal, contending (1) the exclusionary language is ambiguous, and (2) no substantial evidence supports the trial court’s finding and judgment.

Facts

Laura lived- with her divorced mother but maintained close contact with her father, Smith. Beginning about six weeks before the day of the accident, Laura and Smith…