Automobile Underwriters, Inc., Pauline Nelson and Donald Nelson, Intervening v. Fireman's Fund Insurance Companies v. Liberty Mutual Insurance Company

OPINION OF THE COURT

SLOVITER, Circuit Judge.

I

Issue

This case involves the construction of an “other insurance” clause in an insurance policy providing coverage to a car dealership that leased a car to a customer while his car was being fixed. The customer struck and killed a pedestrian while driving this rented car. The question presented is whether the clause in the car dealership’s insurance policy was an “escape” clause, to which Pennsylvania gives no effect, or was a valid “excess” clause, as found by the district court.

II

Facts and Procedural History

William Loving left his car with…