United States District Court, D. Nevada
CLARA ANN KNIGHT, individually and as heir at law to LOGAN LORAINE KNIGHT, deceased; RACHEL WILSON, heir at law to LOGAN LORAINE KNIGHT, deceased; and THE ESTATE OF LOGAN LORAINE KNIGHT Plaintiffs,
LM GENERAL INSURANCE COMPANY, an Illinois corporation, Defendant.
the court are plaintiffs Clara Ann Knight, Loraine Knight,
Rachel Wilson, and the estate of Logan Loraine Knight
(collectively “plaintiffs”) motion for summary
judgment (ECF No. 16) and defendant LM General Insurance
Company's (“LM General”) countermotion for
summary judgment (ECF No. 18). Each party has responded to
the respective motions (ECF No. 20; ECF No. 19) and the
parties have replied to those responses (ECF No. 22; ECF No.
parties seek resolution of a single insurance coverage issue
under a policy of automobile insurance issued by LM General.
The issue is whether an exclusion to the liability coverage
of the LM General policy precludes coverage for wrongful
death/bodily injury claims arising from a February 23, 2015
motor vehicle collision involving LM General's insured,
Paul S. Williams (“Williams”). Both parties agree
there are no material issues of fact in dispute and this
action should be decided on the cross motions for summary
General issued an insurance policy to Williams with effective
dates of April 15, 2014 to April 15, 2015. The policy
provides liability coverage of $250, 000 for each person and
$500, 000 for each accident. The policy provides coverage
“for ‘bodily injury' or ‘property
damage' for which any ‘insured' becomes legally
responsible because of an auto accident.” (ECF No. 18
(Def. Countermotion Summ. J. Ex. 2 (Williams' LM General
insurance policy)). However, the policy includes an exclusion
We do not provide Liability Coverage for the ownership,
maintenance or use of: . . .
2. Any vehicle, other than “your
covered auto, ” which is:
a. owned by you; or
b. furnished or available for your regular use.
subject vehicle is a Kia Sportage assigned to Williams by his
employer PGM Safety Services, LLC (“PGM”). PGM
employed Williams as a safety specialist and his duties
included providing safety services to PGM clients in northern
Nevada. As part of his employment, PGM provided Williams with
the Kia to drive to and from work and to use for work
purposes throughout the business day.
had driven his assigned Kia for several years prior to the
collision. He was given a set of keys and was expected to
drive the Kia to and from work and to take it to job sites
during the workday. Williams kept the Kia at his home in
between work periods. Williams was also expected to keep up
with the Kia's regular maintenance and was reimbursed for
the costs through PGM. PGM prohibited any personal use of the
company vehicles, including even inconsequential errands. If
an employee violated that policy, the employee was required
to reimburse PGM at a rate of $.40/mile. There is no evidence
in the record that Williams violated PGM's policies with
regard to personal use of the company vehicle.
morning of February 23, 2015, Williams was driving to work
southbound on South McCarran Boulevard in his assigned Kia.
For unknown reasons, Williams allowed the Kia to cross into
northbound traffic where it collided head-on with the vehicle
plaintiff Clara Knight was driving. Williams and Clara
Knight's husband, Logan Knight, sustained fatal injuries.
Clara Knight survived, but was seriously injured.
the accident, plaintiffs collectively made claims to LM
General for the full $500, 000 limit of bodily injury
liability coverage available under Williams' policy. The
nature and extent of the injuries is not in dispute and the
parties agree that those injuries are sufficient to implicate
the limits of the subject insurance policy. However, LM
General denied plaintiffs' claims solely on the basis of
the “regular use” exception in Williams'
policy. Plaintiffs disputed the applicability of the
“regular use” exception and the parties agreed to
seek a resolution of their dispute through a declaratory
relief action filed with this court (ECF No. 1