MIRACLE AUTO CENTER v. Superior Court

Here we conclude that the term “standard time,” when used in a general commercial liability insurance policy to determine coverage expiration, means the time currently in use in the state whether standard Pacific time or daylight saving time is in effect.

Factual and Procedural Background

A motion for summary judgment established the following uncontradicted facts. Petitioners are Miracle Auto Center, doing business as Shoffner’s Miracle Auto Mart, and Paris F. and Beverly V. Shoffner (collectively referred to as petitioner). At 12:49 a.m. on June 29, 1997, a police officer discovered a fire on petitioner’s premises. The officer reported the blaze to the fire department at 12:51 a.m. Although the fire was initially small, it spread rapidly, ultimately destroying the building and several cars.

Pacific Specialty Insurance Company (Pacific) had issued a commercial general liability insurance policy (CGL) covering the property. By its terms the policy was in effect from December 7, 1996, to December 7, 1997, at “12:01 A.M. Standard Time at the Address of Named Insured As Stated Herein.” Pacific issued an endorsement canceling the policy for nonpayment of the premium…