Standard Accident Ins. v. Christy
Docket: 5-2745
Court: Supreme Court of Arkansas; September 24, 1962; Arkansas; State Supreme Court
An appeal was filed by Standard Accident Insurance Company against a jury verdict favoring policyholder Ernest Christy regarding a fire insurance claim. The incident occurred in July 1960 when Christy’s 1959 DeSoto caught fire while he was driving. After noticing smoke, he stopped, and the fire was extinguished by water from the radiator, which had leaked after the radiator and air conditioner hoses burned off. The vehicle was towed for repairs costing $763.62, but the insurer only offered $160.47 for the evident fire damage, arguing that damages to the engine's pistons and cylinder walls were due to mechanical failure, thus excluded from the policy coverage. Christy filed a suit for the full repair cost, which was amended to $763.62. The jury, after reviewing the evidence, ruled in favor of Christy, awarding him that amount plus statutory penalties and attorney fees, totaling $1,005.25. The insurer acknowledged the policy covered fire loss but contested that the damage to the engine was not covered, citing a specific exclusion for wear and tear and mechanical breakdowns. The court noted that once Christy met his burden of proof regarding the insurance policy and loss, the insurer had to demonstrate that the damages fell within the policy's exclusions. The testimony of an expert witness introduced by the insurer suggested that the mechanical damage could have been caused by operating the car without sufficient water, leading to overheating. However, Christy testified that the car was functioning properly and was at a moderate speed when he noticed the fire. The jury could reasonably infer from the expert's testimony that the fire originated from the engine and caused the subsequent damage to the vehicle, including the destruction of the hoses and internal motor components due to escaping water. The court concluded that substantial evidence supported the jury's verdict, leading to the affirmation of the lower court's judgment.