State Auto. and Cas. Underwriters v. Farm Bureau Mut. Ins. Co.
| Citation | 131 N.W.2d 265,257 Iowa 56 |
| Decision Date | 17 November 1964 |
| Docket Number | No. 51491,51491 |
| Parties | STATE AUTOMOBILE & CASUALTY UNDERWRITERS, Appellee, v. FARM BUREAU MUTUAL INSURANCE COMPANY, Appellant. |
| Court | United States State Supreme Court of Iowa |
Smith, Peterson, Beckman & Willson, Council Bluffs, for appellant.
Jones, Cambridge & Carl, Atlantic, for appellee.
Two insurance companies cannot agree which one is primarily liable for the wrongful death of a third party resulting from a collision with an automobile insured by both companies. The third party claim was compromised under an agreement that the companies could litigate the coverage question. The decision depends upon the ownership of the car, which in turn depends upon whether there was a bona fide sale. The trial court found such a sale and allowed State Auto as insurer of the vendor to recover from Farm Bureau Mutual, insurer of the Vendee.
Appellant's assignment of errors involves three main propositions: (1) the sufficiency of the evidence to support the finding of a bona fide sale; (2) the weight to be given the presumption of ownership from the title certificate; (3) the admissibility of evidence of settlements made by vendor's company with other parties involved in the accident.
This case was tried to the court as a law action. The findings, therefore, are binding upon us if supported by substantial evidence.
State Auto carried the insurance on a 1957 Plymouth owned by Mary Alice Foster. Because of her impending marriage, she offered the car to her half-brother, Leslie Abbott, upon the condition that he make the payments on the car. On June 23, 1959 Miss Foster wrote the mortgagee seeking to have the financing transferred from her name to that of her half-brother. He took possession of the car on July 5. The Farm Bureau Mutual had been assigned his insurance out of the assigned risk pool. He advised the agent to transfer the policy from a 1950 Chevrolet to the 1957 Plymouth, which was done by letter from the agent to the company, July 13, 1959. The mortgagee in a letter dated July 14, 1959 refused to transfer the financing to Mr. Abbott. The accident happened July 19, 1959. Mr. Abbott made at least two payments on the car by sending his sister his check and she in turn wrote her check to the mortgagee. At least one payment was made after the accident. The title certificate was never transferred.
I. Appellant argues that the sale was conditioned upon the transfer of the financing from Miss Foster to her brother and there is no substantial evidence from which the court could find otherwise. We hold there is evidence to support a finding that there was no such condition involved. The vendee had taken possession of the car and transferred his insurance. In a statement given one of the companies the vendor said: At least two payments were made by Leslie in this manner. This is sufficient support for the court's finding.
II. Appellant argues there is no substantial evidence to support the court's finding that there was an agreement prior to the accident waiving the consent of the mortgagee to transfer the loan to Leslie Abbott. It is true there is no evidence of a subsequent agreement waiving such conditions, but the court could find such conditions were not part of the original agreement. We believe the foregoing evidence, particularly the quote from the vendor's statement coupled with her testimony that she only recalls one conversation with her brother concerning the car, supports the inference that they discussed this possibility at that one conversation and agreed on how the payments would be handled in the event the company refused to transfer the financing.
III. There is substantial evidence to support the court's finding that Abbott believed himself to be the owner of the car. He testified: 'On Sunday July 5, just two weeks before the accident * * * I took possession of the 1957 Plymouth. It was my sister's car and I made an agreement with her to take over the payments on it. She let me have it if I take over the payments on the car. After the discussion I rode up to Des Moines with her on Sunday. I brought her car back and called up Wallace Chesshire, and had him transfer the insurance on the '57 Plymouth, he is my insurance agent. * * *
'I told him that I got the car off of my sister and I wanted to put my insurance on the car.'
Payments were made after word from Commercial Credit that the financing would...
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