Dunlap v. Maryland Casualty Co.

Citations: 242 Ark. 533; 414 S.W.2d 397; 1967 Ark. LEXIS 1279Docket: 5-4215

Court: Supreme Court of Arkansas; May 8, 1967; Arkansas; State Supreme Court

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A suit was filed by Robert Lynn Dunlap against Maryland Casualty Company to establish vicarious liability for an accident involving his injured child. On January 29, 1961, Glenn Gouge, Jr., while driving his father's car permissively, collided with Dunlap's vehicle after running a stop sign, resulting in significant injuries to Dunlap's infant child. Dunlap obtained a judgment against Gouge, Jr. for $19,959.25, but Gouge's insurance covered only $10,000. 

Dunlap's legal team contended that Dan Smith, a passenger in Gouge's car, was covered under a liability policy held by his father with Maryland Casualty, asserting that Smith's presence in the car constituted "use" of a non-owned vehicle. Maryland denied liability, prompting Dunlap's mother to sue Maryland for payment.

The core legal issue was whether Dan Smith was using the Gouge automobile in a manner that invoked coverage under the Smith family policy. The policy provided coverage for relatives and others legally responsible for the use of a non-owned automobile. However, there was no evidence that Smith participated in the operation of the vehicle or that a joint venture existed among the passengers. 

The court referenced prior case law, including a similar case—Potomac Insurance Company v. Ohio Casualty Insurance Company—where a guest in a vehicle was found not to be covered under liability insurance for use of a non-owned car. The court emphasized the need to consider the unique factual context of each case. Ultimately, the court affirmed Maryland's denial of liability, concluding that the policy did not extend coverage to Dan Smith in this situation.