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Coakley v. Horace Mann Insurance Co.1/24/2005
Heard November 17, 2004
AFFIRMED
Respondent filed this declaratory judgment action to determine the applicability of certain automobile liability policies issued by Horace Mann Insurance Company (Horace Mann). The circuit court found coverage under all three policies. We affirm.
FACTS
On August 19, 1994, sixteen-year-old Christian Coakley was a passenger in a car being driven by seventeen-year-old Scott Andrew Mitchell. As they were traveling towards a friend's house, Scott lost control and the car slammed into a tree. The force of the impact shattered a vertebra in Christian's neck, partially severing his spinal cord. As a result of these injuries, Christian is a permanent quadriplegic.
The automobile, a 1984 Mazda RX-7, belonged to Scott's older brother Christopher Mitchell and was titled in Christopher's name. Christopher, a student at Clemson University, resided in an apartment in Clemson, normally kept the car with him, and was its primary user. Prior to the accident, Christopher went on a trip to California and left the car at his mother's house. Christopher was on the way back from California when the accident occurred. Scott was a high school student and lived with his mother in Spartanburg, South Carolina. Claudia "Dee Dee" Mitchell, Scott and Christopher's mother, testified in her deposition that Scott had permission to use the car.
The car was insured through Horace Mann, with Dee Dee being the named insured. The policy provided liability limits of $50,000.00 for personal injury . Dee Dee also maintained policies on three other vehicles. Two of these policies carry liability limits of $50,000.00, and the third has a liability limit of $250,000.00. None of these other policies provided primary coverage for the vehicle involved in the accident.
The special needs trust (the Trust) created on behalf of Christian commenced this action seeking compensation for Christian's injuries. The Trust sought recovery under the policy covering the RX-7, as well as excess coverage under the policies on the other three cars. Horace Mann initially denied liability, but following discovery, the parties entered into a covenant not to execute. Pursuant to the covenant, Horace Mann paid out the liability limits on the policy covering the RX-7. The covenant also allowed the Trust to bring a declaratory judgment action to determine the applicability of the three additional policies. In exchange for permission to bring the action, the Trust agreed that recovery, if any, would be limited to $350,000.00--the combined total of the three policies.
The Trust then filed this declaratory judgment action alleging that although the other policies do not provide primary coverage on the RX-7, they provide excess coverage for "non-owned" vehicles. The Trust argued the RX-7 was a non-owned vehicle because Christopher owned the car and was not a relative within the meaning of the policies.
The parties agreed to transfer the litigation to a non-jury docket and the case was submitted upon memoranda of authority, copies of the policies in dispute, and the deposition testimony of the Mitchell defendants. On March 5, 2003, the trial court issued its order, in which it found excess liability coverage was available to Christian under all three policies. Accordingly, judgment was entered in the amount of $350,000.00. Horace Mann, Scott, Christopher, and Dee Dee (collectively "Appellants") have appealed from that Order.
STANDARD OF REVIEW
A declaratory judgment action to determine coverage under an automobile liability policy is an action at law. Travelers Indem. Co. v. Auto World of Orangeburg,
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