Silverstein v. Liberty Mutual Insurance

The diversity question presented for decision by this appeal concerns the coverage extended under the oft-interpreted “Temporary Substitute” and “Newly Acquired” provisions of an automobile liability insurance policy. The quirk arose because the automobile involved in this particular accident was owned by the insured when the policy was written.

Arnold Fedele, the insured, had purchased a 1962 Chevrolet automobile in 1968 and had driven it until it became inoperable in 1971. He did not sell this vehicle. In October of 1971, Fedele purchased a 1961 Austin Healy, and at that time purchased from…