Tony Andrew Fulcher filed a declaratory judgment action against Grange Mutual Casualty Company, Stacy Marquell Riden, David Trapp, and David Trapp Sales LLC d/b/a David Trapp Sales “Trapp”.1 Fulcher was involved in an accident with Riden, who was driving an automobile owned by Trapp. Trapp was insured by Grange Mutual under a Garage Auto Policy for the business of used car sales. Fulcher and Grange Mutual filed cross motions for summary judgment, and the trial court granted Fulcher’s motion and denied Grange Mutual’s, concluding that Grange Mutual was responsible for providing primary insurance coverage for the face value of its policy, $300,000, rather than the statutory minimum limit of $25,000. Grange Mutual appeals from the trial court’s order. Because we conclude that the unambiguous provisions of the insurance policy specifically provided that Riden was an insured under the policy but was only insured up to the compulsory legal limits, we reverse the judgment of the trial court. “This Court’s review of the grant or denial of summary judgment is de novo in order to determine whether any genuine issue of material fact exists for resolution by a jury.”2 The facts in this case are not in dispute. Stacy Riden purchased a 1990 Geo Prism from Trapp during the summer of 2003. Riden deposed that the purchase price for the Geo was approximately $4000, and that she made a $300 down payment and agreed to make $50 weekly payments; that two months after taking possession of the Geo, she returned to Trapp to report that the gears on the car would not change; that she was without a vehicle for a month while the Geo was at Trapp; and that during that month, Trapp told her that the Geo needed a new transmission and that they would try to repair the car.
While visiting Trapp to make her weekly payment on the Geo, Riden complained about not having a car and Trapp loaned her a 1993 Nissan Coupe. On November 30, 2003, while Riden was driving the Nissan, she collided with a motorcycle driven by Fulcher. When the accident occurred, Riden had no insurance as her policy had been cancelled approximately two months earlier. Fulcher filed a lawsuit against Riden and the instant declaratory judgment action.
