Federal endorsement provision to trailer policy covered tractor-trailer driver even though driver not named insured under policy

Law Reporter, Oct 2002

Lynch v. Yob, 768 N.E.2d 1158 (Ohio 2002).

The Ohio Supreme Court held that plaintiffs could recover the limits of a federally mandated endorsement to a trailer policy even though the driver of the tractor-trailer was not insured under the policy and there was no claim that the trailer owner was negligent.

Here, the estate administrators of two individuals killed when their vehicle collided with a tractor-trailer claimed that insurance coverage was available under a federally mandated endorsement to the trailer policy, even though the trailer's owner was not named in the suit. The trial court ruled in favor of plaintiffs. An appellate court reversed, finding that the endorsement did not apply because the driver of the tractor-trailer and his employer were not insureds under the trailer policy.

Reversing the appellate court, the state high court noted that the endorsement regulation provides, in part, that an insurer agrees to pay any final judgment recovered against an insured for liability resulting from negligence in the operation, maintenance, or use of motor vehicles, regardless of whether each motor vehicle is specifically described in the policy.

Citing case law from other jurisdictions, the court found that the endorsement regulation is meant to assure that injured individuals are able to obtain judgments from negligent interstate carriers. To carry out this purpose, the court explained, the endorsement expands an insurer's policy definition of "insured" to include any permissive users of insured vehicles. In addition, the regulation explicitly overrides any provision in a policy that would relieve an insurer from its duty to pay a judgment against an insured for conduct found to be negligent.

Accordingly, the court reinstated the trial court's judgment awarding plaintiffs the endorsement's coverage limit.

Plaintiffs' Counsel

*Clair M. Carlin, Poland, Ohio

Dale Larimore, Philadelphia, Pa.

Thomas Wilson, and Lawrence A. Goldberg, all of Westchester, Pa.

Amicus Curiae Counsel

*Robert W Kerpsack, Columbus, Ohio