Erie Insurance had issued a HO policy to Lillie Adams. Her grandson, Eddie Greggs, lived with her. On October 31, 1992, while the policy was in force, Eddie and his friend, Thomas Hinkle, were working on Eddie's 1964 El Camino at the insured's residence. Eddie was using a power drill on a strip of metal which he had procured and which was to be used to attach the gas tank to the frame of the car. As Eddie was drilling a hole in the strap, the metal coiled and severed Hinkle's thumb.

The El Camino was not a functioning vehicle. It had no body, seats, brakes, or engine. Eddie described the vehicle as "wheels and a frame." Eddie had bought the car in November 1991, and drove it for about two weeks; but then the transmission failed and he parked it at his house. He then began the process of "restoring" the car. He took out the engine and gave it away. He then stripped it down to the frame and had the frame sandblasted. He had already added the wheels at the time Hinkle was injured.

Hinkle filed suit against Eddie, claiming that he was negligent. Erie filed this action for a declaratory judgment to determine if it was liable. Erie conceded that Eddie was insured under the policy but claimed that the policy excluded injuries arising out of "bodily injury ... arising out of the ownership, maintenance or use of ... (b) any land motor vehicle owned or operated by or rented or loaned to anyone we protect." The policy covered "...motor vehicles...kept in dead storage at an insured location."

The trial court granted summary judgment in favor of Hinkle but didn't indicate the basis for its decision.

In affirming the judgment against Erie, the court stated:

"It is clear that Greggs intended to eventually operate the El Camino again upon the public streets. However, it was not anywhere close to such operability at the time of the accident. Furthermore, the El Camino had been in storage for almost a full year before the accident occurred, the condition of the vehicle was such that one would be hard pressed to find one in a greater state of disrepair, and, most importantly, one major component of the automobile was missing and not even close to the frame--the motor. Under this limited state of facts, this court determines, as a matter of law, that Greggs' El Camino was not a motor vehicle."

The judgment entered in the lower court against Erie was affirmed.

Erie Insurance Company, Appellant v. Lillie Adams, Eddie Greggs and Thomas Hinkle--No. 49A02-9501-CV-9--Court of Appeals of Indiana--January 16, 1997--674 North Eastern Reporter 2d 1039.