Liberty Mutual Insurance v. Merchants Car Leasing Corp.

Under the motor vehicle lease which governed the rental of a 1981 Chevrolet by Merchants Car Leasing Corporation (Merchants) to Green Freedman Baking Company (Baking), only “a duly licensed operator, over the age of 21,” was permitted to drive the leased automobile. Baking had rented the car for the business and personal use of Charles Greenberg, its production manager. Greenberg’s daughter, Robin, then age 19, was at the wheel of the car when it struck and injured James Fallon. The question in the case, raised by complaint for a declaratory judgment, is whether Fallon may reach the optional…