Jonny Larios (Larios) was employed by Olivier House Hotel (Hotel). During his employment, he was retrieving the parked Rutledge vehicle and returning it to the Hotel. An employee had parked the vehicle earlier roughly 10 blocks from the Hotel because, at that time, the adjoining parking lot was full. While driving the Rutledge vehicle, Larios struck a vehicle owned by Charles Vise, Jr., and Delilah Vise (Vise).

At the time of the loss the Hotel was insured under a general liability policy issued by American Empire that covered both the Hotel property and its adjacent parking lot.

Vise filed a petition for damages and named Larios, the Hotel, and Hartford (Vise's uninsured motorist carrier). The Hotel filed a third-party demand against American Empire seeking defense and indemnity. American Empire filed a motion for summary judgment, asserting that it had no liability under the policy because of an automobile exclusion, which excluded coverage for damages arising out of the use of an automobile.

The Hotel filed a cross-motion for summary judgment, arguing that the auto exclusion did not apply here because of a parking exception. Hartford opposed American Empire's motion for summary judgment based on the same argument advanced by the Hotel.

The trial court granted judgment in favor of American Empire and denied the Hotel’s cross-motion. The Hotel and Hartford filed appeals.

The policy automobile exclusion excluded coverage for:

“Bodily injury” or “property damage” arising out of the ownership, maintenance, use or entrustment to others of any aircraft, “auto” or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and “loading and unloading”.

The exclusion does not apply to:

Parking an “auto” on, or on the ways next to, premises you own or rent, provided the “auto” is not owned by or rented or loaned to you or the insured; [“parking exception”]

American Empire argued that at the time of the accident, Larios was not “parking” the Rutledge vehicle, and more importantly, he was not operating the vehicle “on, or on the ways next to” the premises operated by Olivier House Hotel. American Empire submitted that the accident occurred at an intersection roughly ten (10) blocks away from the Hotel and its adjoining parking lot. American Empire asserted that considering the unambiguous language of the exclusion, the policy does not provide coverage for parking a vehicle at a remote location.

The appellate court agreed and affirmed the ruling of the trial court.

Vise v. Olivier House Prop. Mgmt., LLC, 2016-0741 (La. App. 4 Cir. 4/12/17)