United States v. California State Automobile Association and California State Automobileassociation Inter-Insurance Bureau

This appeal presents the question whether the United States may recover from an insurer of a serviceman, under a medical payments provision of the policy, for medical treatment rendered in a military hospital after an automobile accident. We affirm the district court which granted summary judgment for the government. The order of the district court sets forth the facts, issues and policy provisions and we need not repeat them here. United States v. California State Automobile Ass’n, 385 F.Supp. 669, 670-1 (E.D.Cal.1974).

In considering whether the United States is an “insured” within the meaning of the policy, we look first to clause (3) of the “PERSONS INSURED” portion of PART I of the policy (quoted 385 F.Supp. at 671 ).

The government certainly is an “organization.” Ballentine’s Law Dictionary 898 (3rd ed. 1969). It incurred “liability” under 10 U.S.C. §§ 1074 and 6203 to provide medical care to its Navy enlisted men, Meyer and Lovato. Had it not been for the “acts and omissions” of Meyer, the named insured, the statutory liability of the government would not have arisen.

Since the United States is an “organization [which incurred] . . liability because of acts or omissions…