A New Jersey appeals court has affirmed a ruling of a trial court, finding that a group insurance companies are not liable for a car accident, which injured several members of the Detroit Red Wings hockey team.
The accident occurred on June 13, 1997 when the driver of a limousine, carrying the players, lost control of his vehicle and crashed, causing serious injury to the players. The players and their families sued the driver (Richard Gnida) and the service (Gambino’s Westside Limousine Service) in Michigan state court.
After exhausting their legal options in Michigan, the plaintiffs brought an additional action in New Jersey, claiming entitlement to additional benefits as the result of coverage allegedly provided to Gambino’s and Gnida under business auto policies (BAPs) issued to the National Hockey League (NHL) and Little Caesar’s, the corporate owner of the Red Wings and under commercial general liability (CGL) coverage issued to the Red Wings.
After the New Jersey trial court granted summary judgment to the defendants, the plaintiffs appealed.
“Our review of the coverage provided under the NHL’s policy satisfies us that its omnibus clause cannot be read to provide insurance for the liability of Gambino’s and Gnida,” wrote the appeals court. “Even if we assume that the limousine and driver were contracted for by the Red Wings, that organization was not an insured under the NHL’s policy. Because it was not an insured, it could not act as the ‘you’ providing initial permission for the use of the vehicle, even if facts supported such initial permission, which we find they do not. The named insured on the NHL policy was ‘National Hockey League Services, Inc.’ Although a March 3, 1997 endorsement identified additional named insureds, the Detroit Red Wings, Inc. is not among them.”
The appeals court also affirmed summary judgment for the insurers of Little Caesar’s and the Detroit Red Wings on a related basis.
“As we have noted, the omnibus clauses at issue become effective only if a named insured (i.e., the Red Wings) granted initial permission for Gnida to ‘use’ Gambino’s limousine. Gambino’s is not a named insured under either the Little Caesar’s or Detroit Red Wings policies.” Fetisov et al. v. Vigilant Insurance Co. et al.; N.J. Super. Ct. App. Div.; No. A-0828-04T2, 2006 WL 2051116; July 25, 2006
Attorneys of Record: (for appellants) Richard M. Goodman of Goodman, Lister & Peters. (for respondents) Gerard H. Hanson of Hill Wallack.
