State Farm Mutual Automobile Insurance Co. v. ElmoreAnnotate this Case
Kent backed up a grain truck that was owned by his father, Sheldon, to an auger that was being used to move grain to a transport truck. A tractor powered the auger by means of a power take-off shaft. Kent, attempting to open the truck’s gate, wanted to get extra leverage and stepped onto the auger. The auger’s protective shield had been removed. Kent’s foot was exposed to the turning shaft. In the ensuing accident, Kent lost his leg below the knee. Kent settled a negligence action against Sheldon and received $1.9 million from insurers.
Kent reserved his right to pursue additional coverage under the auto policy that covered the truck. State Farm sought a declaratory judgment that no coverage was provided because an auger is neither a “car” nor a “trailer,” as defined in the policy but fell under the policy’s “mechanical device” exclusion for damages resulting from "THE MOVEMENT OF PROPERTY BY MEANS OF A MECHANICAL DEVICE, OTHER THAN A HAND TRUCK, THAT IS NOT ATTACHED TO THE VEHICLE.” The circuit court granted State Farm summary judgment. The appellate court construed the exclusion against State Farm.
The Illinois Supreme Court reversed. The exclusion was not ambiguous. The auger is a machine or tool designed to move grain from one place to another and is a device that was “operated by a machine or tool” (a tractor) that is not a small hand-propelled truck or wheelbarrow, and was not attached to the insured vehicle. Exclusions are permissible if they do not differentiate between named insureds and permissive users.