An Ohio appellate court, reversing a trial court's decision, has rejected an auto insurer's contention that an automobile insurance policy became void after the insured sold the vehicle insured under the policy.
The Case
Chanel Holloman allegedly was injured in a car crash by a car driven by Chrisopher Hay, who was driving a Chrysler Sebring owned by Mr. Hay's then-girlfriend, Bethany Mathis.
At the time, Mr. Hay had an auto liability insurance policy with Trustgard Insurance Company that listed a 1998 Cadillac Deville as a covered automobile, although he had sold that car approximately four months prior to the collision.
After Ms. Holloman obtained a default judgment against Mr. Hay for $25,000, she sought to recover her judgment against Trustgard.
Trustgard moved for summary judgment, arguing that Mr. Hay's liability insurance policy was void because he had no insurable interest after he sold the Cadillac.
The trial court granted summary judgment in favor of Trustgard, and Ms. Holloman appealed.
The Trustgard Insurance Policy
The Trustgard policy provided that Trustgard would:
pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident.
It defined "insured" as:
[y]ou . . . for the ownership, maintenance or use of any auto or trailer.
The Appellate Court's Decision
The appellate court reversed the trial court's judgment in favor of Trustgard.
In its decision, the appellate court reasoned that the liability coverage section in the Trustgard policy did not limit coverage to a covered auto.
Moreover, the appellate court continued, Trustgard had not pointed to any language in the policy that would support its argument that the policy became void upon sale of the covered auto.
Therefore, the appellate court ruled, Trustgard's argument that Mr. Hay's liability insurance policy became void upon the sale of his Cadillac was "contrary to the plain language of the policy."
The case is Holloman v. Permanent General Assurance Corp., No. C-180692 (Ohio Ct. App. Dec. 11, 2019). Attorneys involved include: O'Connor, Acciani & Levy and Robert B. Acciani, for Plaintiff-Appellant. Reminger Co., LPA, and Chad E. Willits, for Defendant-Appellee Permanent General Assurance Corporation, d.b.a. The General. John P. Carlson, for Defendant-Appellee Trustgard Insurance Company.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].