Steven v. Fidelity And Casualty Company Of New York

377 P.2d 284 (1962)

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Nature of the Case

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Facts

On March 3, 1957, George purchased at Los Angeles, California, a round-trip airplane ticket to Dayton, Ohio. As part of the return trip, the itinerary included a flight from Terre Haute, Indiana, to Chicago, Illinois. George simultaneously purchased for a premium of $2.50 a $62,500 life insurance policy which named his wife, P, as the beneficiary. The policy was bought from a vending machine. The policy set out across the top the following specifications: 'Do Not Purchase More Than a Total of $ 62,500 Principal Sum -- Nor for Travel on Other Than Scheduled Air Carriers. This Policy Covers on One-Way Trip Only Unless Round Trip Ticket Is Purchased Before Departure.' The evidence does not clearly show whether, at the time of purchase, the aperture of the vending machine disclosed the entire top portion of the policy, including the printed warning as to the amount and coverage for travel on 'scheduled air carriers,' or merely the form for the personal data and flight information to be furnished by the purchaser. George using the envelope provided by the machine, mailed it to his wife. On his return trip from Dayton, the plane arrived at Terre Haute. His round-trip ticket scheduled him to take a Lake Central Airlines plane to Chicago at noon that day. The Lake Central plane had been grounded in Indianapolis and the scheduled Lake Central flight to Chicago was cancelled at about four hours later. The agent of Lake Central Airlines researched other alternatives but none would get them to Chicago on time. The agent took George and the other three men to the office of Turner Aviation. Turner agreed to fly the men to Chicago for $36 per person, or, if two more passengers could be obtained, for $21 a person. Two additional passengers were obtained and accordingly, George and each of the other passengers paid for their tickets. The Piper Tri-Pacer airplane took off at 5:55 p.m. Sometime around 7 p.m. on March 6, 1957, near Grant Park, Illinois, the plane crashed. George suffered fatal injuries. Turner held no certificate of public convenience and necessity from the Civil Aeronautics Board. The plane trip on which the accident occurred was not a regular and scheduled flight for Turner. D refused payment under the policy. P sued D. The trial court found that George at the time of the accident 'was not riding as a passenger on an aircraft operated by a scheduled air carrier, as defined in [the] policy, and that he was riding a charter plane. P appealed.