Grinnell Mutual Reinsurance Co. v. Thompson

Summary

The Supreme Court of North Dakota reversed a district court judgment requiring Grinnell Mutual Reinsurance Company to provide coverage and a defense for Shelly Thompson following an intentional collision. The court held that Shelly was neither a named insured nor a permissive operator, so North Dakota's Financial Responsibility Laws did not require minimum coverage for her conduct and the insurance policy controlled. The court concluded that the policy's intentional-acts exclusion permitted Grinnell to deny coverage.

Holdings

1. Shelly Thompson was an insured under the policy but was not the named insured. Norman Thompson alone was the named insured because he was identified as such in the policy declarations.
2. The Financial Responsibility Laws do not require any minimum level of coverage for a nonpermissive operator who is neither the named insured nor a person using the vehicle with the named insured's express or implied permission.
3. Because Shelly Thompson was a nonpermissive operator outside the statutory minimum-coverage mandate, the policy controlled and permitted Grinnell to exclude coverage for her intentional collision.
4. Summary judgment was proper because the parties identified no genuine issue of material fact and the dispositive issues were legal questions concerning statutory and policy interpretation.

Questions Presented

1. Whether North Dakota's Financial Responsibility Laws require minimum liability coverage for a spouse or family member who drives the named insured's vehicle without permission.
2. Whether Shelly Thompson was a named insured under Norman Thompson's policy because the policy defined 'you' and 'your' to include a resident spouse.
3. Whether the policy's intentional-acts exclusion could exclude coverage for Shelly Thompson's intentional collision when she was a nonpermissive operator.
4. Whether the district court properly granted partial summary judgment to Foltz, FBF Leasing, and Continental and denied Grinnell's summary-judgment motion.

Disposition

reversed_and_remanded