BNSF Railway Co. has coverage under its Old Republic Insurance Co. policy for a $1.475 million judgment entered against an employee who hit another vehicle while driving a company-owned car while drunk, said the Missouri Supreme Court in a unanimous en banc opinion that overturns a lower court ruling.

In January 2009, Fort Worth, Texas based BNSF gave James M. Campbell, foreman of a group of workers who traveled to replace railroad ties, use of a company vehicle, according to Tuesday’s ruling in Ricky Griffitts v. Old Republic Insurance Co., BNSF Railway Co., and James M. Campbell.

The railroad had no express policy detailing when the employee could use the vehicle while traveling to, staying near and working at an out-of-town job site, said the ruling. It did have a policy against using alcohol while operating company-owned vehicles.

On the day of the collision, Mr. Campbell drank alcohol at a barbecue, then fell asleep for a few hours. After he work up, he drove the car and rear-ended Mr. Griffitts’ vehicle.

 Mr. Campbell, whose blood alcohol content was more than twice the legal limit, was arrested by police and later fired for violating company rules.

Mr. Griffitts sustained serious injuries, which led to litigation including a $1.475 million judgment against Mr. Campbell.

Mr. Griffitts filed suit against Greensburg, Pennsylvania-based Old Republic, BNSF and Mr. Campbell in an “equitable garnishment” action, seeking coverage for the judgment under BNSF’s Old Republic policy.

A state circuit court entered judgment in the defendants’ favor, which was overturned by the state supreme court in Jefferson City in a unanimous ruling.

“The only issue considered by the circuit court was whether Campbell, at the time of the collision, had permission to use the company vehicle under the omnibus clause of BNSF’s insurance policy,” said the ruling.

The court had reasoned because Mr. Campbell had violated company rules at the time of the accident, he did not have permission to use the company vehicle at that time.

The Supreme Court disagreed. “Because Campbell had broad, almost unfettered permission to use the company vehicle at the time of the accident, it does not matter, for purposes of insurance coverage under BNSF’s omnibus clause, that Campbell was drunk, because once ‘use ha(s) been permitted it is immaterial a how the vehicle was operated,’” said the court, in quoting an earlier ruling, and remanding the case further proceedings.