Decide the Case

Darner Motor Sales, Inc. v$.$ Universal Underwriters Insurance Company$[1]$

Darner Motor Sales $($Darner$)$ was in the business of selling, leasing, and servicing motor vehicles. Doxsee was an insurance sales agent of Universal Underwriters Insurance Company. Doxsee called on Darner to see about selling the company insurance products. Joel Darner purchased a $$U$-$Drive$$ policy to provide insurance coverage for leased vehicles. Darner was covered in limits of $$100,000$ for any one injury and $$300,000$ for all injuries occurring from one accident, a so$-$called $100/300$ plan. Lessees were covered in limits of $15/30.$

A year later, Darner purchased all of their insurance products from Doxsee and Universal. This included garagekeeper$$s liability, premises liability, property coverage, crime coverage, customer car coverage, and plate glass insurance. Darner and Doxsee referred to this as an $$umbrella policy.$$ Additionally, Darner told Doxsee to extend the U$-$Drive coverage for another year. When Darner received the policy regarding the U$-$Drive coverage he was concerned, because when his company leases cars to customers, the lease documents states lessees are covered for $100/300$ not the $15/30$ outlined in the U$-$Drive policy. During a meeting with Doxsee, Doxsee stated it didn$$t matter because lessees would be covered for $100/300$ under the umbrella policy. Sometime later the umbrella policy documents arrived, which were $$book length$$ in a loose$-$leaf type binder that neither Mr$.$ Darner nor his employees read.

Dwayne Crawford, a lessee of Darner, was subsequently in an accident that caused severe injuries to a pedestrian. After being found negligent, Mr$.$ Crawford looked to Universal for coverage. Universal held to the limits of $15/30,$ which did not cover all of the expenses. Mr$.$ Crawford then sued Darner based on the lease language stipulating coverage of $100/300.$

If you were Darner$$s attorney, what theories would you put forward for why Universal should be liable?

What is the issue of this case that the court must decide?

If you were deciding this case, how would you rule? Would your decision be considered fair?