American Mut. Fire Ins. Co. v. Southland Motors, Inc., 21909

• Decision Date: 02 May 1983
• Docket Number: No. 21909,21909
• Citation: 302 S.E.2d 854,279 S.C. 101
• Court: South Carolina Supreme Court
• Parties: AMERICAN MUTUAL FIRE INSURANCE COMPANY, Plaintiff-Respondent, v. SOUTHLAND MOTORS, INC., Universal Underwriters Insurance Company, John H. Penton and Christopher W. Smith, Defendants, of whom John H. Penton is Respondent, and Southland Motors, Inc. and Universal Underwriters Insurance Company are Appellants.

Page 854

302 S.E.2d 854

279 S.C. 101

AMERICAN MUTUAL FIRE INSURANCE COMPANY, Plaintiff-Respondent, v. SOUTHLAND MOTORS, INC., Universal Underwriters Insurance

Company, John H. Penton and Christopher W. Smith, Defendants,

of whom John H. Penton is Respondent,

and

Southland Motors, Inc. and Universal Underwriters Insurance

Company are Appellants.

No. 21909.

Supreme Court of South Carolina.

May 2, 1983.

Grimball, Cabaniss, Baughan & Guerard, Charleston, for appellants.

G. Dan Bowling, Arnold S. Goodstein, and Buist, Moore, Smythe & McGee, Charleston, for respondents.

HARWELL, Justice:

This appeal involves automobile insurance. Appellants allege the trial court, sitting without a jury, erred in ruling Appellant Universal Underwriters Insurance Company provided the coverage. We disagree.

In an action at law tried by a judge without a jury, we review the record to determine whether there is any evidence which reasonably supports the factual findings of the judge or whether his findings are controlled by an error of law. Townes Assoc. Ltd. v. City of Greenville, 266 S.C. 81, 221 S.E.2d 773 (1976). We conclude there is ample evidence to support the findings of the judge.

On June 14, 1976, Christopher W. Smith, a young Marine private, visited the automobile sales lot of Appellant Southland Motors, Inc. Smith met with one of Southland's salesmen, Mr. Besok, and agreed to purchase a new 1976 MG Midget sports car. He paid a $100 deposit on the car and promised to return the next day with the remainder of the purchase price, $4,301.80. Mr. Besok obtained the necessary information to complete the forms for transfer of ownership and registration. Southland's customary policy was to deliver the necessary forms directly to the South Carolina Department of Highways and Public Transportation. Smith signed the odometer mileage statement and the Form 406 statement certifying that he owed no personal property taxes. Additionally, he received a military sales tax exemption form to be signed by his commanding officer. Finally, Mr. Besok asked Smith how he intended to insure the vehicle. Smith signed a statement certifying that he had a policy of insurance meeting the requirements of the South Carolina Financial Responsibility Act.

On June 15, 1976, Smith returned to Southland with a check for only $4,181.00 and without the completed military exempt form or the necessary insurance information. Smith dealt with another salesman on this occasion, Mr. Loggins, as Mr. Besok was not there. Mr. Loggins testified that Smith said he had left the necessary insurance information at the Charleston Naval Shipyard Credit Union where he obtained financing, but would deliver the information the following day. Smith denied telling Mr. Loggins this. Loggins gave Smith the use of the vehicle even though a balance of $120.80 remained on the purchase price, the military exempt form had not been completed, and the...