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STATE AUTO. INS. ASSN. v. YOUNG MEN'S REPUBLICAN C
July 9, 1987
State Automobile Insurance Association, Plaintiff,
Young Men's Republican Club of Allegheny County, Inc., et al., Defendants
The opinion of the court was delivered by: DIAMOND
Defendants and plaintiff have moved for summary judgment. These motions raise the single issue of whether the insurance policy between plaintiff and the Young Men's Republican Club covers liability arising from the service of alcohol, in violation of statute, to a patron who is visibly intoxicated. We hold that the policy does not, and we grant summary judgment for plaintiff.
Plaintiff, State Automobile Insurance Association, brought this declaratory judgment action to ascertain its obligations under an insurance contract between it and the defendant the Young Men's Republican Club of Allegheny County, Inc. ("the Club"). On the night of May 27, 1983, the Club served alcohol to Lawrence Rodgers when he was visibly intoxicated. After he left the Club, Rodgers caused an auto accident, killing and injuring several people. The victims brought suit in the Court of Common Pleas and obtained verdicts against, among others, the Club. Hartman v. Croatian National Hall, 134 P.L.J. 189 (Pa. Com. Pl. 1986).
Plaintiff has joined the plaintiffs in that action as defendants here.
Under the "Comprehensive General Liability Insurance" contract entered into on May 29, 1982, between plaintiff and the Club, plaintiff agreed to
pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of
to which this insurance applies, caused by an occurrence. . . .
Complaint, Exhibit A, p. 5.
The "Definitions" section of the policy defines "product hazard" as follows:
"Products hazard" includes bodily injury and property damage arising out of the named insured's products or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs away from premises owned by or rented to the named insured and after physical possession of such products has been relinquished to others.
Complaint, Exhibit A, p. 2.
However, the Club also purchased "Completed Operations and Products Liability Insurance" as a "coverage part" to the general liability insurance. This part appears in an endorsement which redefines "products hazard" as follows:
"Products hazard" includes bodily injury and property damages arising out of (a) the named insured's products or (b) reliance upon a representation or warranty made with respect thereto; but only if the bodily injury or property damage occurs after ...
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