Defendant insurer denied a defense or indemnification to its insured when he struck and injured a motorcyclist while making a pizza delivery. The insurer argued that its insured’s actions at the time of the motor vehicle accident constituted operation of a “public and livery conveyance.” The auto insurance policy excluded coverage when the insured vehicle was being used as a “public conveyance.” The Trial Court sided with the insured and an appeal ensued.

The applicable policy exclusion excluded coverage “to any automobile while used as a public or livery conveyance. This exclusion does not apply to … use of a private passenger vehicle for volunteer or charitable purposes or for which reimbursement for normal operating expenses is received.” The policy did not define what constituted a “public or livery conveyance.”

On appeal, the Court of Appeals noted that a “public or livery conveyance” insurance exception had rarely received appellate review. The Appellate Court relied on a 1947 Michigan Supreme Court decision which defined a “livery conveyance” as something “used indiscriminately” to convey goods and was not limited to certain persons or particular occasions.

Since the insured was using his car to deliver pizza only occasionally, it was not being indiscriminately offered for public use to transport goods. Thus, the Court of Appeals affirmed the trial court’s decision that the personal line auto insurance owed a defense and indemnification to its insured.

Click on the link to read the court ruling in the case Pizza Hut, Inc. v Home-Owners Ins Co.

About Alexander & Angelas, P.C.

Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.

Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.

A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.

Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees, and strives to resolve matters within one year from initial case assignment.

Visit Alexander & Angelas online at https://www.alexanderandangelas.com/ for more information. Partner Peter A. Angelas is available to discuss a confidential matter.

Michigan Law

Personal Line Auto Insurer Owed Duty to Defend Delivery Driver