Dairyland Ins. Co. v. Drum
In Dairyland Ins. Co. v. Drum, 193 Colo. 519, 568 P.2d 459 (Colo. 1977), Drum was towing Miller's disabled truck on the highway. Drum had an automobile policy with Colorado Farm Bureau, and Miller had one with Dairyland Insurance Company.
During the tow, a third vehicle traveling down the highway ran into the towed truck. Both the Colorado Farm Bureau and Dairyland Insurance Company policies agreed to pay all sums which the insured "shall become legally obligated to pay because of bodily injury . . . caused by accident and arising out of the ownership, maintenance, or use of the automobile." Id. at 460.
The trial court found that under the terms of the policies, "Miller (steering the towed vehicle) was using both his and Drum's towing vehicle; and Drum was using his own vehicle, but not Miller's." Id. at 461.
The Supreme Court of Colorado, however, reversed, holding that both vehicles were being used by both Miller and Drum since, "it is obvious that Drum's actions in towing the Miller vehicle carried the potential of creating an unreasonable risk of injury. That potential arose as much from Drum's use of Miller's vehicle as from the use of his own." Id. at 462.