for its use by its employee. The United States was then "an
insured" under the policy unless it must be said that the
United States is not an organization.
State Farm is presumed to have used the word "organization"
to include all that that word is commonly understood to
include. "Organization" means, inter alia, "State or manner of
being organized; organic structure, purposive systematic
arrangement; constitution." Webster's New International
Dictionary, 2nd Ed., Unabridged. "Constitution" is defined,
inter alia, as "The fundamental organic law or principles of
government of a nation, state, society, or other organized
body of men, embodied in written documents, or implied in the
institutions and customs of the country or society; * * *"
Those definitions certainly include governments within the
class of organizations. Only by thinking of the United States
as an expanse of land within fixed boundaries, and nothing
more, could we deny it status as an organization. That
physical factor is not the nation. Within our experience
nations have been recognized as existing organizations though
they lacked dominion and control over the land area with which
their existence was commonly associated. That was true because
the people of those nations looked to the constituted
authority of government, not to land mass, for their identity
as a nation. In like manner, the United States is its people
organized in a specific way for the purpose of constituting a
system of government. It is an organization pure and simple,
despite our sometimes inclination to lose sight of that humble
birth and seek for it a more exalted state.
Moreover, the indicated definition of the word
"organization" is not new. Interpreting essentially identical
policy clauses two courts held prior to the 1961 amendment
that the United States was an insured under policies of
liability insurance issued to its employees. Irvin v. United
States, D.S.Dak., 148 F. Supp. 25; Rowley v. United States,
D.Utah, 140 F. Supp. 295. The 1961 amendment to the act did not
derogate from the authority of those decisions.
Though State Farm is chargeable with knowledge of the fact
of prior judicial interpretation of the word "organization",
it issued its policy without any change in its omnibus
definition of "an insured." It has no cause to complain that
the word is now given its common meaning and the definition
previously judicially applied.
Though there is logic in much said through the dissenting
voice of Judge Neese in McCrary relative to the potential
conflicts between the duties of the Attorney General to defend
and the policy provision which gives the insurer complete
control of the defense of claims, I do not see these conflicts
as insurmountable obstacles. Such potential conflicts
certainly cannot operate to exclude the United States from
insurance coverage under the policy.
I hold that the United States is an insured under the State
Farm policy. State Farm's motion to dismiss the third party
complaint is therefore denied.
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