Booker T. Holloway and wife, Brenda Holloway v. James C. Purdy and Chris Purdy

This appeal involves the Tennessee Uninsured Motorist Act. The plaintiffs owned a body shop that was insured under a garage owner’s policy. The policy limited its uninsured motorist coverage to vehicles that were owned by the plaintiffs and listed on the policy. While driving to an auto parts store in a customer’s car, one of the plaintiffs was hit by an uninsured motorist and sustained physical injuries. The plaintiffs then submitted claims to the insurance company that issued the garage owner’s policy, and also to his customer’s insurance company, seeking recovery under the uninsured motorist provisions of both policies. After the claims were denied, the plaintiffs filed a lawsuit against the uninsured motorist. The insurance company that issued the plaintiffs the garage owner’s policy filed a motion for summary judgment, arguing that there was no coverage because the policy did not cover the plaintiffs while operating a non-owned vehicle. The trial court granted the motion for summary judgment. As a permissive operator, the injured plaintiff was covered under his customer’s uninsured motorist policy. The customer’s insurance company settled with the plaintiffs, obtained an assignment of their rights against the insurance company that issued them the garage owner’s policy, and then intervened as a third party plaintiff. The intervening plaintiff now appeals the trial court’s grant of summary judgment to the insurer under the garage owner’s policy, arguing that the Uninsured Motorist Act prohibits such a limitation. We affirm, finding that the statute does not prohibit the limitation.