Gray•Duffy represented an insurer who insured an auto dealership involved in a service loan vehicle program. The auto dealership policy excluded renters. The plaintiffs obtained a $2.8 million judgment against a renter under this program. The plaintiffs then pursued coverage for the judgment under the auto dealership policy claiming that the rental agreement did not apply and that the renter exclusions did not apply, were ambiguous and were not permitted under law. We represented the insurer and tried the coverage case in Shelby County Chancery Court in Memphis, Tennessee in December 2018, and obtained declaratory judgment in favor of our client in April 2019. Plaintiffs appealed. The appeal was argued to the Tennessee Court of Appeals at Jackson, Mississippi in September 2020 via Zoom. The Court of Appeals handed down its decision affirming the judgment for our client in November 2020.
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