Cal-Farms Ins. Companies v. Firemen's Fund American Ins. Companies

In Cal-Farms Ins. Companies v. Firemen's Fund American Ins. Companies (1972) 25 Cal.App.3d 1063, the leasing company's insurer successfully invoked the exclusion of section 11580.9, subdivision (b) to a two-year written lease. The trial court specifically found that the leasing company was engaged in the enumerated businesses since the automobiles were "'usually sold . . . under and by means of a lease plan whereby the prospective purchaser took possession of said automobile under a lease pending the completion of said sale'" (p. 1071). The Court of Appeal, in affirming, also noted, at page 1072, that "The lease was a vehicle for selling. In all cases the car was ultimately sold before the lease obligations were terminated."