California Casualty Insurance v. Northland Insurance

Memorie Yessian (Yessian) obtained a judgment against Mr. and Mrs. Joe Harmer for personal injuries sustained in a boating accident involving the Hammers’ Yamaha Waverunner. Yessian sought to enforce her judgment, and to assert claims assigned to her by the Hammers, against two of the Hammers’ insurers, California Casualty Insurance Company (CCIC) and Allstate Insurance Co. (Allstate). The lower court granted summary judgment for the insurers, concluding neither CCIC’s nor Allstate’s policy covered Yessian’s injuries. Yessian appeals.

We agree with the lower court that neither policy covered Yessian’s claims. CCIC’s policy expressly excluded liability arising from the use of a watercraft with inboard motor power. It was undisputed the Waverunner was a watercraft with an inboard engine. We reject Yessian’s argument that because the Waverunner was propelled by a jet pump rather than a propeller, it was not an “inboard motor power watercraft" despite the location of its engine.

Allstate’s policy covered the Hammers’ 18-foot Donzi waterski boat, not the Waverunner. Although it also covered dinghies or tenders “used to service” the Donzi, the Waverunner was not being used…