Allstate Insurance Company, a Corporation v. Robert G. Stevens and Himeyo Date

Allstate, in a diversity action brought for declaratory relief, was held obligated to defend Stevens and respond in damages for liability arising out of the use of Stevens’ 1958 Volkswagen. Allstate appeals, challenging the trial judge’s conclusion, D.C., 313 F.Supp. 819 , that the automobile in question was covered by the policy provision relating to the insured’s use of an automobile of which he “acquires ownership” during the policy term. It contends: (1) the automatic insurance provision does not apply to an automobile owned by the insured at the time of the issuance of the policy, not covered therein, which becomes operable during the policy period; (2) the trial court’s findings of fact, as to when the Volkswagen became operable, were clearly erroneous. We agree with the appellant’s first contention and therefore reverse.

Allstate issued a policy to Robert Stevens covering his 1962 Oldsmobile for a year, from August 18, 1967 to August 18, 1968. The policy in addition to covering the 01dsmobile¡ covered his use of “an additional * * * automobile of which the named insured acquires ownership.”

At the time the policy was issued, Stevens also owned a 1958 Volkswagen with…