Merino

MEMORANDUM *

This is a diversity action in which the plaintiffs seek coverage under the underinsured motorist provision of a commercial automobile insurance policy issued by Defendant, Allstate Indemnity Company, to the company owned by Plaintiffs’ decedent, Frank Merino. Merino was killed by an under-insured motorist while riding his personal bicycle, on personal business. Plaintiffs, Merino’s heirs, recovered up to the policy limit under the uninsured motorist coverage of Merino’s personal insurance policy. They now seek to recover an additional $400,000 under the insurance policy owned by Merino’s business, Commercial Facility Services, d.b.a. CFS, Inc.

The policy in question here was denominated a commercial insurance policy and it specifically insured several named vehicles, owned by CFS. The district court granted summary judgment for Allstate, holding that the policy unambiguously insured only the company and employees of the company while driving company vehicles.

In this appeal, as they did before the district court, Plaintiffs contend that in describing the named insured under the policy as “you,” the insurance company created the reasonable expectation that the…