Northwestern Security Insurance v. Monarch Insurance

This appeal is from a judgment for respondents in an action for declaratory relief. The sole issue presented is whether appellant Albert H. Navarro was driving an automobile owned by respondent Ronald R. Howard with the consent of the owner and is therefore entitled to benefits under Howard’s insurance policy issued by respondent Northwestern Security Insurance Company.

The single question of fact, whether Navarro had permission at the time of the accident, was submitted to a jury. The jury returned a special verdict that Navarro did not have Howard’s permission. This action does not involve the claim of any third party who suffered injury or damage as a result of Navarro’s operation of the auto. We limit our remarks to the factual situation before us.

Navarro and Howard had been close social friends for more than five years prior to October 1963. During the period in which the two were acquainted, Howard owned an automobile. In 1963, he acquired a 1960 Palcon and insured it through Northwestern. Navarro owned a 1958 Impala in 1962, insured with appellant, Monarch Insurance Company.

At no time during the five-year period preceding October 1963, had Howard loaned any automobile…