Cherkezov v. Universal Underwriters Insurance

The issue in this case is whether the liability insurer of an automobile dealer is liable to plaintiff for injuries she sustained as a result of the negligent operation of one of the dealer’s vehicles by a customer to whom the dealer had loaned it.

Plaintiff was injured in a collision between a car in which she was a passenger and one driven by the defendant Reid. The car Reid was operating was owned by Marv Tonkin Ford Sales, Inc. (Tonkin), and had been loaned to Reid by Tonkin while Reid’s own car was being serviced. Plaintiff obtained a judgment against Reid, which was partially satisfied…