Pacific Employers Insurance v. Michigan Mutual Insurance

The question presented is whether a school district’s general liability insurer or its automobile liability insurer is subject to liability for injuries suffered by a child returning from her first day of kindergarten, who was disembarked by a school bus driver at the wrong stop, and who, trying to find her way to her destination, was injured crossing a street at an unfamiliar location.

The general liability insurer asserts that the injury arose out of the “use” of the school bus, while the automobile insurer asserts that the injury did not arise out of the “use” of the school bus, but rather…