Appeal from the Circuit Court of Madison County; the Hon.
Jonathan Isbell, Judge, presiding.
JUSTICE KASSERMAN DELIVERED THE OPINION OF THE COURT:
Rehearing denied November 14, 1984.
Universal Underwriters Insurance Company (Universal) filed a declaratory judgment action against State Farm Automobile Insurance Company (State Farm), Victoria Cookson, and Martina Mertens, in which it sought to determine whether a certain insurance policy which it issued covered Victoria Cookson and Martina Mertens. State Farm filed a counterclaim against Universal and Victoria Cookson and Martina Mertens, alleging that Victoria Cookson and Martina Mertens were excluded from coverage under an insurance policy which State Farm had issued to Allen Cookson and Jewell Cookson, Victoria's parents. Victoria Cookson subsequently filed a complaint seeking insurance payments from both Universal and State Farm.
The issues presented for review concern the interpretation to be given several provisions of insurance policies issued by Universal and State Farm.
The basic facts giving rise to this dispute are as follows: Wayne E. Mertens and his wife Marsha, in the capacity of Belleville Honda, purchased automobile insurance from Universal. Subsequently, the Mertens requested that their daughter, Martina, drive a pickup truck used by Belleville Honda to Chicago to obtain some motorcycles for the business. Martina asked for and was given permission to permit Victoria Cookson to travel with her on this trip. Victoria had been staying with the Mertens for approximately two months following the death of her boyfriend, the Mertens' son Chris, who had died as the result of an automobile collision. On September 13, 1978, while Victoria Cookson was driving the pickup truck to Chicago, she and Martina Mertens were involved in a one-vehicle collision which resulted in personal injuries to both of the girls. Universal paid the collision claim on the pickup truck, but both Universal and State Farm denied that their insurance policies gave rise to a duty to defend or indemnify Victoria Cookson against claims or judgments arising out of such collision or to make any medical payments under either of their policies.
The relevant portions of the Universal policy stated:
"UNICOVER COVERAGE PART NO. 010
OWNED AUTOMOBILES - DEALERS PHYSICAL DAMAGE
I. The Company will pay for LOSS to COVERED AUTOMOBILES * * * caused by COLLISIONS or upset.
UNICOVER COVERAGE PART NO. 400 GARAGE INSURANCE
This insurance does not apply, under the Garage Liability Coverages:
(c) to any obligation for which the INSURED or any carrier as his insurer may be held liable under any workmen's compensation, unemployment compensation or disability benefits law, or under any similar law; (d) to BODILY INJURY to any employee of the INSURED ...