BROADCASTS.com

b'

Representative of Five Dead Seek to Hold Owner of Vehicle\'s Insurer  Responsible for Deaths and Injuries 

 In Motorists Commercial Mutual Insurance Company v. Roger Hartwell;  Lynnway Auto Auction, Inc., Safety Insurance Company; et. al.  Nos.  21-1603, 21-1636, United States Court of Appeals, First Circuit  (November 23, 2022) the plaintiff claimed it owed neither defense nor  indemnity to persons not insured by it to claims that a vehicle the  named insureds\' owned while driven by the employee of an auctioneer  killed five people and injured many.  FACTUAL BACKGROUND  The dispute arose from an auction at which a motor vehicle being  displayed for bidding suddenly accelerated into a group of attendees,  killing five and injuring many others. Defendants include those who  claim an interest in Motorists\' coverage: the victims, the auctioneer,  and its employee. Both sides moved for summary judgment. The district  court granted the motion for summary judgment in favor of Motorists.  

Nashua Automotive, LLC is a New Hampshire car dealership that sells new  and used cars. It is owned by a dealership group called AutoFair, Inc.  and operates under the name "AutoFair Volkswagen of Nashua." ("Nashua.")  While Nashua sells most of their vehicles "retail" (to the public),  about 8% or 9% of their revenues come from vehicles sold "wholesale"  (online or at an auction). For its vehicles sold wholesale, Nashua  primarily engages with a company called Lynnway Auto Auction, Inc.,  which operates an auction facility in Billerica, Massachusetts. Neither  AutoFair nor Nashua owns Lynnway, and Lynnway does not own Nashua or  AutoFair.

At the time of the accident, Lynnway employee Roger Hartwell was seated  in the driver\'s seat of the Jeep, though he claims that the vehicle  accelerated uncontrollably despite his efforts to stop it.  In due course, the victims and their estates filed a series of lawsuits  in Massachusetts state court, alleging several theories of liability  against Lynnway, Hartwell, Nashua and AutoFair, as well as other related  individuals and entities.  THE MOTORISTS\' POLICIES  All defendants moved for summary judgment, prompting a cross-motion from  Motorists. Motorists pointed to the auto business exclusion which  Motorists contended foreclosed coverage under the Primary Policy. It  also argued that its Umbrella Policy\'s Following Form Endorsement  provides auto coverage that is no broader than that provided for in the  Primary Policy.