Date of Case Completion:
March 11, 2021
Category:
Insurance Coverage Dispute / Declaratory Judgment / Commercial Auto Liability
Summary:
McLemore Law PLLC secured summary judgment in favor of Allstate in a complex insurance coverage dispute involving a dealership-owned vehicle and multiple personal injury claims. The court found that Allstate’s personal auto and umbrella policies did not provide coverage for the accident, as the incident arose from auto business operations under Lyons Chevrolet’s garage policy.
Description:
Case Name: Owners Insurance Company & Lyons Chevrolet Buick GMC, Inc. v. Allstate Property & Casualty Insurance Company, Allstate Indemnity Company, Joseph Gordon Jr., Pedro Cid Santos & Cecilia Aviles Velazquez Mendez, Individually & as next friend of Juan Aviles & Alexia Aviles, Minors
Court: Circuit Court of Maury County, Tennessee at Columbia
Case No.: 15910
This declaratory judgment action addressed whether Lyons Chevrolet’s garage policy or Allstate’s personal policies provided primary coverage following a December 8, 2015, accident involving Joseph “Ty” Gordon, Jr. The plaintiffs alleged that Gordon, driving a Lyons-owned vehicle in the scope of dealership business, caused injuries to several individuals including minors.
McLemore Law PLLC, representing Allstate, argued that Gordon’s use of the dealership vehicle fell within the scope of “auto business operations” and that Allstate’s policy exclusions applied. The Court agreed, holding that Allstate’s personal and umbrella policies did not cover the incident. Citing Tennessee Code Annotated § 56-7-1101(b) and key precedent—including Pollard v. Safeco Ins. Co. and Aetna Casualty & Surety Co. v. Martinez—the court found no ambiguity in the policy language and ruled that only one cause (Gordon’s operation of the vehicle for business purposes) was at issue.
As a result, the court granted Allstate’s Motion for Summary Judgment and denied the competing motion filed by Owners Insurance Company.