Insurer Not Liable For Unauthorized Use Of Truck

Carl Manuel (Manuel) was employed by Lou Warner (Warner) as a truck driver. Warner operated a hauling business and owned six semi-tractors and trailers. The fleet was insured by Carolina Casualty for liability.

All of Warner's drivers were instructed that they were not to drive after consuming any amount of alcohol. They were also told the trucks were not to be used for any personal reason without Warner's express permission.

Manuel was scheduled to make a trip on June 15. On the 14th, he was given the keys to one of the trucks. That same day, a trailer was prepared for the trip, loaded and attached to the vehicle.

That evening, Manuel attended a cookout with members of the Warner staff and families. He had a few beers and two "shots" of hard liquor. During the cookout, he and his wife argued, then they left in their personal car. Later, Manuel's wife took Manuel to the truck terminal as he decided to sleep in the rig he was assigned for the next day’s trip.

Instead of sleeping, Manuel drove the vehicle from the terminal. He ended up colliding with a vehicle owned by Carl Hall and his wife. Later, the couple sued Warner and Warner’s insurer for damages. Warner filed a motion for summary judgment which the trial court denied.

On appeal, the higher court viewed things differently. Neither party disputed that Manuel operated the vehicle for his personal (without permission) and that he drank alcohol before taking the vehicle. The court concluded that neither Warner nor Warner’s insurer could be held responsible for the collision damage.

The judgment entered in the trial court in favor of the injured parties was reversed. The action was remanded with instructions to enter summary judgment in favor of the insured and her liability company.

Warner Trucking, Inc., et al Appellants v. Carl C. Hall et ux--No. 20A03-9410-CV-398--Court of Appeals of Indiana--July 3l, 1995--653 North Eastern Reporter 2d 1057.