Case Name: Eddie ELLERSON v. Richard I. SCOTT et al.
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1975-10-01
Citations: 320 So. 2d 527
Docket Number: No. 56015
Parties: Eddie ELLERSON v. Richard I. SCOTT et al.
Judges: SANDERS, C. J., dissents for the reasons assigned by TATE, J.
Reporter: Southern Reporter, Second Series
Volume: 320
Pages: 527–533

Head Matter:
Eddie ELLERSON v. Richard I. SCOTT et al.
No. 56015.
Supreme Court of Louisiana.
Oct. 1, 1975.
Rehearing Denied Nov. 4, 1975.
Byron Magbee, Baton Rouge, for plaintiff-applicant.
Horace C. Lane, Lane & Clesi, Baton Rouge, for defendants-respondents.

Opinion:
DIXON, Justice.
Writs were granted in this case because of a conflict between the circuits in the interpretation of a provision in automobile insurance policies.
A personal injury suit was filed against Scott and State Farm Mutual Automobile Insurance Company, arising out of an automobile accident involving a 1966 Ford owned by Scott.
State Farm moved for summary judgment, attaching an automobile liability insurance policy and an affidavit by thq defendant Scott.
Scott owned two automobiles at the time he purchased the policy involved. The policy, however, insured only a 1970 Ford automobile. A 1963 Chevrolet automobile, which Scott had owned for some time, was not listed in the policy. The accident occurred on February 6, 1972; the policy period was from August 21, 1971 to February 21, 1972. The 1966 Ford involved in the accident was acquired by Scott on November 19, 1971 in a transaction in which Scott disposed of the 1963 Chevrolet. No notice was given to the insurance company, and no request was made by Scott for coverage of the 1966 Ford.
The allegations in Scott's affidavit are as follows:
"On November 19, 1971 he purchased the said 1966 Ford automobile, and in connection with the purchase of said 1966 Ford he traded in a 1963 Chevrolet, which he had owned for approximately three and one-half years prior to November 19, 1971.
"The 1963 Chevrolet was uninsured on November 19, 1971, at the time it was traded in connection with the acquisition of the 1966 Ford, and, in fact, the 1963 Chevrolet was never listed as a described vehicle on any policy issued by State Farm Mutual Automobile Insurance Company.
"He never reported acquisition of the 1966 Ford to State Farm Mutual Automobile Insurance Company during the policy period mentioned in Article 1 above, and he never requested to State Farm Mutual Automobile Insurance Company that any insurance coverage be extended on the 1966 Ford."
Summary judgment was rendered in favor of State Farm, and affirmed by the Court of Appeal. 306 So.2d 877 (La.App., 1st Cir. 1975).
The policy provision involved is:
" 'owned automobile' means
(a) a private passenger, farm or utility automobile described in this policy for which a specific premium charge indicates that coverage is afforded.
(b) a trailer owned by the named insured.
(c) a private passenger, farm or utility automobile ownership of which is acquired by the named insured during the policy period, provided
(1) it replaces an owned automobile as defined in (a) above, or
(2) the company insures all private passenger, farm and utility automobiles owned by the named insured on the date of such acquisition and the named insured notifies the company during the policy period or within 30 days after the date of such acquisition of his election to make this and no other policy issued by the company applicable to such automobile, or ." (Emphasis added).
In affirming the trial court's summary judgment dismissing plaintiff's action against the insurer, the First Circuit followed other opinions of that circuit. Hartzog v. Eubanks, 200 So.2d 303 (La.App.1967); Altazan v. Reed, 154 So.2d 610 (La.App.1963). Its opinion conflicts with Conner v. Motors Insurance Corp., 216 So.2d 555 (La.App., 3d Cir. 1968).
The plaintiff Ellerson contends that the additional vehicle was automatically covered by virtue of the provisions in the policy quoted above, by which automatic insurance is provided for a vehicle acquired during the policy period either if it replaces a described vehicle or if at the time of acquisition the company insures all automobiles owned by the insured. Plaintiff's argument is based on the contention that the only car Scott owned at the moment prior to the acquisition of the 1966 Ford was the 1970 Ford listed in the policy, and that, therefore, State Farm insured all automobiles owned by Scott at the time of acquisition of the 1966 Ford and, therefore, the 1966 Ford is automatically covered.
State Farm denies coverage for the reason that, on the date of acquisition of the new vehicle, the insurance policy did not afford coverage to all automobiles owned by the named insured.
The only reasonable construction that can be placed on the affidavit attached to State Farm's motion for summary judgment is that the disposition of the 1963 Chevrolet and the acquisition of the 1966 Ford was a simultaneous transaction. Scott traded the Chevrolet for the 1966 Ford. An exchange takes place by the "bare consent of the parties." C.C. 2661. A sale is perfected when there is agreement on the object and the price. C.C. 2456. There is no state of suspension for ownership of automobiles in a car trade. Ownership changes simultaneously upon agreement of the parties.
We find no ambiguity in the policy provisions involved. It is clear that the insurance policy afforded protection for liability involving automobiles described in the policy, additional newly acquired vehicles provided either- that they replaced a described vehicle- or provided that the policy covered all automobiles owned by the insured at the time of the acquisition.
Conner v. Motors Insurance Corp., 216 So.2d 555 (La.App.1968) is overruled.
The Court of Appeal and district court are correct in dismissing plaintiff's suit against State Farm Mutual Automobile Insurance Company. The judgment of the Court of Appeal is affirmed, at plaintiff's cost.
SANDERS, C. J., dissents for the reasons assigned by TATE, J.
TATE, J., dissents and assigns reasons.
BARHAM, J., does not participate.