P & H VEHICLE RENTAL AND LEASING CORPORATION, HOLIDAY RENT-A-CAR INTERNATIONAL, INC., AND THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, APPELLANTS,
v.
WILLIAM GARNER, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF LINDA SUE GARNER, WILLIAM GAMER, INDIVIDUALLY, HILDA GARNER, INDIVIDUALLY, PETER JOHN WICKENDEN, INDIVIDUALLY, AND ALLSTATE INSURANCE COMPANY, APPELLEES

Fla. 5th DCA | 1982-07-07
No. 81-1319
COBB and FRANK D. UPCHURCH, Jr., JJ., concur.
416 So. 2d 503 Florida District Court of Appeal, Fifth District (1982) Caution
Cited by 18 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

This appeal concerns whether an auto rental company's insurer (Pennsylvania) has primary coverage for a negligent driver (Wickenden) who rented a vehicle and caused a fatal accident. The court holds that Pennsylvania is the primary insurer because the lessor failed to comply with Florida's statutory procedure for shifting primary coverage to the lessee, and that public policy precludes excluding coverage based on the driver's intoxication.


Holding

Pennsylvania has primary coverage because the rental agreement failed to comply with Florida Statute § 627.7263's requirement that primary coverage be shifted to the lessee in bold type on the face of the agreement. The provision purporting to exclude coverage based on intoxicated driving is invalid as against public policy. However, the court lacks jurisdiction to determine whether Pennsylvania can seek indemnity from Wickenden in this non-final order.


Headnotes

[1] An order determining the priority of insurance coverage between co-defendants in a car rental scenario constitutes a determination of liability for the purpose of appella…

[2] A lessor of a rental motor vehicle cannot shift the burden of primary insurance coverage to the lessee unless the rental agreement explicitly states so in bold type on it…

Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“The owner of a motor vehicle (a dangerous instrumentality) is liable for its negligent operation, so long as the vehicle is operated with his knowledge and consent.”

Establishes the public policy principle that prevents a lessor from disclaiming liability for negligent operation of rental vehicles.

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

Wickenden rented a car from P & H Vehicle Leasing Corporation. While driving the rental car, Wickenden was involved in an accident with a vehicle oper…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
ORFINGER, Chief Judge.

ORFINGER, Chief Judge.

This appeal is from a non-final order determining primary coverage as between two insurers, and denying to the primary insurer the right to seek indemnification from the lessee of the leased automobile involved here.

Appellee Wickenden rented a car from appellant P & H Vehicle Leasing Corporation (P & H). While driving this car, he was involved in an accident with a vehicle operated by Linda Sue Garner, resulting in her death. Garner’s personal representative filed suit against P & H as the owner of the vehicle, and The Insurance Company of the State of Pennsylvania (Pennsylvania), its insurer, and against Wickenden and his insurer, Allstate Insurance Company (Allstate). Each insurer then filed a cross-claim against the other, seeking a determination that the other’s coverage was primary. In the partial summary judgment appealed from, the trial court determined that Pennsylvania had the primary coverage and that it was not entitled to seek indemnity from Wickenden, because Wick-enden was an insured under its policy. Pennsylvania appeals from this non-final order. Appellee questions our jurisdiction to hear this non-final appeal. We have jurisdiction, if at all, under Florida Rule of Appellate Procedure 9.130(a)(3)(C)(iv).1 The part of the order denying to appellant the right to indemnity is clearly not an order determining liability in favor of appellant, so we have no jurisdiction to consider it. Weltz v. Mann, 383 So. 2d 324 (Fla. 5th DCA 1980).

The portion of the order determining the priority of insurance coverage is more troublesome. We think the correct rule in that regard is stated in Alamo Rent-a-Car, Inc. v. Summers, 404 So. 2d 131 (Fla. 2d DCA 1981). On an identical question of primary vs. secondary coverage in a car rental scenario, raised by co-defendants against each other, as here, the court held that as between the defendants there was a claim for affirmative relief and that a determination that one defendant had primary coverage was a determination of “liability”, even though the decision did not carry with it an obligation to pay. We agree on both points, and find that we do have jurisdiction to consider the appeal of the portion of the summary judgment determining which of the two contesting carriers has primary coverage. We recognize that this holding appears to be in conflict with Ogur v. Mogel, 390 So. 2d 105 (Fla. 3d DCA 1980).

The trial court found that Pennsylvania had primary coverage as the lessor’s insurer because the rental agreement did not properly shift that burden to the lessee under section 627.7263, Florida Statutes (1981). That statute provides the means for shifting primary insurance coverage from the lessor to the lessee of a rental motor vehicle.2 The agreement in issue here clearly did not “[state otherwise] in bold type on the face of the ... agreement” 3 and the space in which lessee’s insurance carrier could be filled in was left blank. The trial court was correct in holding that the statute had not been complied with.

But, Pennsylvania says that the lessee here is not insured at all under the policy, because he violated a condition of the rental agreement by driving the rental car while intoxicated.4 Under the terms of Pennsylvania’s insurance policy, Wickenden was an insured. There is nothing in the policy which says otherwise. The rental agreement contained these conditions on the reverse side:

Paragraph 2 — The vehicle shall not be used ... (2) by any person who is under the influence of intoxicants, narcotics or drugs.

Paragraph 5 — The vehicle is covered by an automobile liability insurance policy . .. said policy provides coverage and limits of liability at least equal to the liability coverage and limits of liability required of the operator to satisfy this State’s financial responsibility motor vehicle laws, but only if no other valid and collectible insurance, whether primary, excess or contingent, is available to renter. Renter . .. agrees to comply with and be bound by all of the terms, conditions, limitations, and restrictions of said policy. LESSORS POLICY SHALL NOT APPLY ... to any liability of renter or any driver, ... arising while the vehicle is being used in violation of any of the limitations set forth in paragraph 2.

Pennsylvania’s contention cannot be sustained. The owner of a motor vehicle (a dangerous instrumentality) is liable for its negligent operation, so long as the vehicle is operated with his knowledge and consent. In Roth v. Old Republic Insurance Co., 269 So. 2d 3 (Fla.1972), the court held that a provision of a rental agreement stating that the lessor was not responsible for the operation of the motor vehicle if driven by someone other than the lessee, except with lessor’s knowledge and consent, was invalid as against public policy. See also, Susco Car Rental Systems v. Leonard, 112 So. 2d 832 (Fla.1959). The same public policy reasons apply here. P & H leased the vehicle to Wickenden, and P & H is responsible for the negligent operation of the vehicle by Wickenden, whether Wickenden was drunk or sober, and the provision quoted above attempting to avoid liability if the lessee is driving while intoxicated is invalid as against public policy. Similarly, the provision relied on is ineffective to relieve P & H’s insurer from liability because coverage is provided in the insurance policy to the owner, which by the terms of the policy extends to the owner’s lessee. State Farm Mutual Automobile Insurance Company v. Day Car, Inc., 395 So. 2d 179 (Fla. 3d DCA 1980). Section 627.7263 provides a means by which the lessor may shift the obligation for primary coverage to the lessee, and that method was not followed here. The trial court was correct in holding that Pennsylvania had primary coverage.

That portion of the order holding that Pennsylvania has primary coverage is affirmed. The appeal from that portion of the order denying the right of Pennsylvania to seek indemnity from Wickenden is dismissed, without prejudice to the right to present this issue in an appeal from a final judgment.

COBB and FRANK D. UPCHURCH, Jr., JJ., concur. . Review of non-final orders of lower tribunals is limited to those which:

(c) determine:
(iv) The issue of liability in favor of a party seeking affirmative relief.

.Section 627.7263, Florida Statutes (1981):

Rental and leasing driver’s insurance to be primary; exception—

(1) The valid and collectible liability insurance or personal injury protection insurance providing coverage for the lessor of a motor vehicle for rent or lease shall be primary unless otherwise stated in bold type on the face of the rental or lease agreement. Such insurance shall be primary for the limits of liability and personal injury protection coverage as required by §§ 324.021(7) and 627.-736.

(2) Each rental or lease agreement between the lessee and the lessor shall contain a provision on the face of the agreement, stated in bold type, informing the lessee of the provisions of subsection (1) and shall provide a space for the lessee’s insurance company’s name if the lessor’s insurance is not to be primary.

. Instead, just above the place for the lessee’s signature, in type no different than found elsewhere in the agreement, is this statement: “Notice — Florida Statutes 627.7263 provides that the rental customer’s automobile liability and personal injury insurance shall be primary.” This is an incorrect statement of the law in effect when this agreement was signed. See Guemes v. Biscayne Auto Rentals, 414 So. 2d 216 (Fla. 3d DCA, 1982).

. The only reference in the record to consumption of alcohol by Wickenden was his deposition testimony that he had had three draft beers within a two-hour period prior to the accident. In the light of our holding here, whether he was intoxicated has no bearing on the question of coverage in this case.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Travelers Ins. Co. v. Bruns, 443 So. 2d 959 (Fla. 1984)
    …PER CURIAM. Petitioner seeks review of Travelers Insurance Company v. Bruns, 429 So. 2d 317 (Fla. 4th DCA 1983), on the ground of direct and express conflict with P & H Vehicle Rental and Leasing Corp. v. Garner, 416 So. 2d 503 (Fla. 5th DCA 1982), and Alamo Rent-A-Car, Inc. v. Summers, 404 So. 2d 131 (Fla. 2d DCA 1981). We have jurisdiction. Art. V, § 3(b)(3), Fla. Const. This case arose from an action against Bruns (respondent) and her alleged insurer, Travelers Insuran…
  • …responsibility leaves the lessor primarily responsible up to the limits of its insurance policy ($300,000) which would free the lessee from all liability. In support of this argument, he cites P & H Vehicle Rental and Leasing Corporation v. Garner, 416 So. 2d 503 (Fla. 5th DCA 1982), disapproved on other grounds Travelers Insurance Company v. Bruns, 443 So. 2d 959 (Fla.1984), in which this court ruled that the failure of the lessor in that case to comply with section 627.7263 made the lessor primarily liable…
  • Travelers Ins. Co. v. Bruns, 429 So. 2d 317 (Fla. 4th DCA 1982)
    …. Mogel, 390 So. 2d 105 (Fla. 3d DCA 1980) and certify that an express conflict is thus created between the present case and Alamo Rent-a-Car, Inc. v. Summers, 404 So. 2d 131 (Fla. 2d DCA 1981) and P. & H. Vehicle Rental and Leasing Corp. v. Garner, 416 So. 2d 503 (Fla. 5th DCA 1982). We further acknowledge that we indicated a contrary view in Gallahad Associates v. Rose, 392 So. 2d 44 (Fla. 4th DCA 1980) but in doing so we relied on State Farm Mutual Auto Ins. Co. v. American Hardware, 345 So. 2d 726 (Fla.…

Previewing 3 of 9 citing cases — full citator treatment, depth of discussion, and citing context are member features.

Join FLexlaw to unlock all legal intelligence

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw