DENMAN RUBBER MANUFACTURING COMPANY, AND ADMIRAL INSURANCE COMPANY, APPELLANTS,
v.
WORLD TIRE CORPORATION, APPELLEE

Fla. 5th DCA | 1981-03-11
No. 80-686
COBB and FRANK D. UPCHURCH, Jr., JJ., concur.
396 So. 2d 728 Florida District Court of Appeal, Fifth District (1981) Caution
Cited by 14 cases

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Synopsis

Denman Rubber Manufacturing Company and its insurer appealed a judgment finding that their insurance policy provided indemnity to World Tire Corporation, a vendor, for injuries caused by an exploding tire. The court held that the insurance policy's exclusion clause was unambiguous and clearly excluded coverage for installation operations performed away from the vendor's premises.


Holding

The exclusion clause is not ambiguous. It clearly excludes coverage for injuries arising from installation, servicing, or repair operations performed at locations other than the vendor's premises, regardless of whether the vendor or a third party performed the operations.


Headnotes

[1] An insurance policy exclusion for bodily injury or property damage arising out of demonstration, installation, servicing, or repair operations, except such operations per…

[2] Ambiguities in an insurance policy are construed against the insurer only when a genuine inconsistency, uncertainty, or ambiguity exists after applying ordinary rules of…

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Key Quotes

“An insurance policy should receive a reasonable, practical and sensible interpretation.”

Establishes the foundational principle that insurance policies must be interpreted reasonably and sensibly, not in ways that create paradoxical outcomes.

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Facts & Procedural History

Denman sold tires to World Tire, which sold them to retailers. An employee of a retailer was injured when mounting one of Denman's tires and the tire …

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Opinion of the Court
DAUKSCH, Chief Judge.

DAUKSCH, Chief Judge.

This is an appeal of a final judgment which adjudged World Tire Corporation to be entitled to indemnity. This adjudication was based upon the trial court’s finding that an exclusion clause of insurance policy was ambiguous. We hold that there was no ambiguity in this exclusion clause and reverse.

The parties stipulated that: Denman Rubber Manufacturing Company sold tires to World Tire Company which World Tire in turn sold to retailers. While an employee of one of these retailers was mounting one of these tires, it exploded causing injuries to this employee. This employee then instituted suit against World Tire and Den-man, and Denman admitted it had an insurance policy in effect at the time of this accident.

Denman’s insurance policy contained an endorsement stating that the “Persons Insured” by the policy included all vendors of Denman’s products. Since World Tire was the vendor of Denman’s tire which had exploded, World Tire cross-claimed for indemnity under this insurance policy. Denman and its insurer denied that this policy provided indemnity because of an exclusion clause, which read:

The insurance with respect to the vendor does not apply to ... bodily injury or property damage arising out of ... demonstration, installation, servicing or repair operations, except such operations performed at the vendor’s premises in connection with the sale of the products

The trial court found that the exclusion failed to explicitly specify or differentiate between the vendor and other persons doing operations away from the vendor’s premises, thus causing the exclusion to be ambiguous. The trial court construed the exclusion to mean that only when the vendor itself performed the “demonstration, installation, servicing or repair operations” away from its premises would the exclusion apply to deny indemnity coverage. This interpretation meant that when the vendor performed the installation operations away from its premises it would not be covered, yet a third party performing these installation operations away from the vendor’s premises would be covered.

This is not a reasonable interpretation of this exclusion. An insurance policy should receive a reasonable, practical and sensible interpretation. U. S. Fidelity & Guarantee Co. v. Hazen, 346 So. 2d 632 (Fla. 2d DCA 1977). See also Excelsior Ins. Co v. Pomona Park Bar & Package Store, 369 So. 2d 938 (Fla.1979). Although ambiguities should be construed against an insurer, this only applies when there exists “a genuine inconsistency, uncertainty, or ambiguity in meaning after resort to the ordinary rules of construction . .. . ” Id. at 942. See also Parliament Ins. Co. v. Bryant, 380 So. 2d 1088 (Fla. 3d DCA 1980). If terms of an insurance policy can be susceptible to two interpretations, then an interpretation providing indemnity must prevail. Ellenwood v. Southern United Life Ins. Co., 373 So. 2d 392 (Fla. 1st DCA 1979). However, the court should consider the entire contract rather than just an isolated sentence when resolving a question of coverage. James v. Gulf Life Ins. Co., 66 So. 2d 62 (Fla.1953); Ellenwood.

The endorsement in Denman’s policy provided insurance coverage to a vendor by bringing it within the class of “Persons Insured.” Excluded from coverage were injuries arising from the demonstration, installation, servicing or repair operations performed somewhere other than the vendor’s own premises. This exception is clear; for situations where the vendor’s premises are not used for the installation or servicing operations, the exclusion denies coverage. Since the employee in the instant case was not injured on the vendor’s premises, there is no liability under Denman’s insurance policy.

The final judgment is reversed and the issue is remanded to the trial court.

REVERSED AND REMANDED.

COBB and FRANK D. UPCHURCH, Jr., JJ., concur.


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Citator

Cited By

  • …solved against the insurer, this principle applies only when there exists a genuine inconsistency, uncertainty or ambiguity in meaning after resort to the ordinary rules of construction. Denman Rubber Manufacturing Company v. World Tire Corporation, 396 So. 2d 728 (Fla. 5th DCA 1981). The courts cannot rewrite contracts, add meaning that is not present or otherwise reach results contrary to the intentions of the parties. Excelsior Insurance Company v. Pomona Park Bar & Package Store, 369 So. 2d 938 (Fla.1979)…
  • Davis v. Nationwide Life Ins. Co., 450 So. 2d 549 (Fla. 5th DCA 1984)
    …s Law Dictionary 471 & 656 (5th ed. 1979); Webster's New Collegiate Dictionary 370 & 537 (1981). . Webster’s New Collegiate Dictionary 368 (1981). . Webster’s New Collegiate Dictionary 128 (1981). . See Denman Rubber Mfg. Co. v. World Tire Corp., 396 So. 2d 728 (Fla. 5th DCA 1981); Van Zanten v. National Cas. Co., 333 Mich. 28, 52 N.W. 2d 581 (1952). . See Davison v. Business Men's Assurance Co. of America, 85 N.M. 796, 518 P. 2d 776 (1974); Kloepfer v. Continental Assurance Co., 23 Utah 2d 178, 460 P. 2d…
  • Coleman v. Valley Forge Ins. Co., 432 So. 2d 1368 (Fla. 2d DCA 1983)
    …So. 2d at 481-82. An exclusion, by its nature, serves to limit or diminish the scope of coverage [*1371] otherwise provided in the policy. If exclusions are clearly stated, they should be upheld. Denman Rubber Manufacturing Co. v. World Tire Corp., 396 So. 2d 728 (Fla. 5th DCA 1981); Craine v. Gee, 276 So. 2d 521 (Fla. 2d DCA 1973). The only reasonable construction of the policy as a whole indicates that Valley Forge provided liability coverage for a temporary substitute automobile but did not intend to prov…

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