Issue: Roger Franklin lived on a farm and had secured a Comprehensive Liability policy. He kept some horses on his "old home place" farm near his residence, and his tenant on that farm, Donald Sullens, had permission to ride the horses while looking after the cattle which Franklin also kept on that farm.

On October 7, 1973, one of the horses was involved in a collision on a rural bridge with a car occupied by Edward and Janie Pilcher. The horse was being ridden at that time by Ray Sharp, a friend of the tenant and an acquaintance of the owner of the farm. The horse was killed and Mr. and Mrs. Pilcher were injured, and they thereafter brought an action to recover damages. Franklin notified his insurance carrier, and the latter brought this action for declaratory judgment to determine its liability.

Judgment: The Farm-Pak policy issued to Franklin covered liability for injuries caused by animals used with the permission of the insured, and the insurance company denied liability on the ground that Sharp did not have the insured’s permission to ride the horse at the time of the accident. The lower court agreed, and ruled that the company had no liability under its policy.

The higher court, on appeal, reversed the judgment and relied upon the decision in United States Fidelity and Guaranty Company v. McManus, which held that once a car owner has given permission to a person to use the vehicle, the insurance company is obligated to provide coverage for any subsequent user, except a thief. The court said further: "…It is of no consequence that the original permissive use was of a horse and not a motor vehicle. The position of the parties and the principles involved are the same."

Auto-Owners Insurance Company v. Pilcher et al – No. 75-547 - Appellate Court of Illinois, Fifth District–August 1, 1977 – 366 North Eastern Reporter (2d) 935. (Rough Notes Magazine February, 1978).