Government Employees Insurance Co v. United Services Automobile Ass’n

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In 1999, Thomas Laffey was injured when his car was hit by a car owned by Sharon Bass. Sharon's daughter Krystal was the car's primary user; Steven Parent was driving the car at the time of the accident. Sharon had a family automobile insurance policy issued by Appellee Government Employees Insurance Company (GEICO), which listed the car. The policy insured Sharon, or any resident in her household, or any other person using the car with permission of the named insured, provided his actual use of the car was within the scope of such permission. Steven's mother Annie also had an automobile insurance policy with GEICO. Annie's policy covered bodily injury for those it insured while they operated a car owned by another. After the accident, Laffey presented claims to GEICO under Sharon's and Annie's policies. The claims were denied on the ground that Steven lacked permission to operated the car at the time of the accident. Laffey also submitted a claim to his own automobile insurer, Appellant United Services Automobile Association (USAA), and filed a motion for judgment alleging Steven had been negligent in his operation of the car. GEICO filed a declaratory judgment action against USAA, Annie, Steven, Sharon, Krystal and Laffey seeking a determination that it was not obligated to pay for the accident. The court held that Steven was entitled to coverage under both Sharon's and Annie's policies. GEICO appealed. On review, the Supreme Court reversed the lower court's holding and entered final judgment in favor of GEICO.