Mercury Insurance Group v. Checkerboard Pizza

Mercury Insurance Group filed a declaratory relief action against its insured, Steven Negrette, and his employer, Checkerboard Pizza, seeking confirmation of its decision to deny coverage to Negrette based on an exclusion for business use of a nonowned vehicle. The trial court granted summary judgment in favor of Mercury, and Checkerboard Pizza appeals. We reverse.

I

Mercury issued an automobile insurance policy to Robert Negrette covering his family cars, including a 1985 Buick station wagon. Other drivers listed were Robert’s wife, Tara Negrette, and their three children, Michael, Steven and Sherry. In December 1988, Robert leased a Corsica from MacPherson Chevrolet to use while the Buick was being repaired. On December 15, 17-year-old Steven borrowed the Corsica from his father to use in his job as a deliveryman for Checkerboard Pizza. While delivering pizza, Steven went through a red light and struck an automobile driven by Beverly Matteson. Matteson filed an action for personal injuries against MacPherson Chevrolet, Robert and Tara Negrette, Steven Negrette and Checkerboard Pizza.

Mercury’s policy contains an exclusion making it inapplicable “to a non-owned…