Title: Heshion Motors, Inc. v. Trinity Universal Ins. Co.
Citation: 229 Kan. 412, 625 P.2d 437
Docket Number: 50,988
State: Kansas
Issuer: Kansas Supreme Court
Date: March 25, 1981

229 Kan. 412 (1981)
625 P.2d 437
HESHION MOTORS, INC.; Appellee,
v.
TRINITY UNIVERSAL INSURANCE COMPANY, Appellant.
No. 50,988

Supreme Court of Kansas.
Opinion filed March 25, 1981.
Robert B. Van Cleave, of McAnany, Van Cleave &amp; Phillips, P.A., of Kansas City, argued the cause and was on the brief of appellee.
Ronald L. Bodinson, of Payne &amp; Jones, Chartered, of Olathe, argued the cause and Barry W. McCormick and J. Eugene Balloun, of the same firm, were on the brief of appellant.
The opinion of the court was delivered by
HERD, J.:
This is a declaratory judgment action to determine the issue of coverage for a loss suffered by appellee under an insurance contract with appellant. The issue is whether the insured had "full and valid title" at the time of the loss of the automobile, giving coverage under the policy. The trial court entered summary judgment for Heshion Motors, Inc., from which Trinity appeals.
In June of 1976 Heshion Motors agreed to purchase a 1973 Jaguar automobile from Faddis Leasing Corporation for $6,000. At the time the agreement was entered into George Etherington had possession of the car as lessee. Etherington delivered the Jaguar to Heshion Motors on either August 3rd or 4th, 1976. The date is in dispute. On August 10, 1976, while the Jaguar was in the possession of Heshion, a salesman permitted two potential purchasers to test drive the car. The purchasers didn't return with the vehicle. It was soon discovered, fully stripped, in Denver, Colorado. Heshion wrote Faddis a check for the car on August 4, *413 1976. The evidence is unclear as to the date of delivery of the check or the date it was deposited.
Following the theft, on August 19, 1976, the certificate of title to the Jaguar was signed and notarized by Faddis. The date of its delivery is in dispute.
Heshion was the owner of an insurance policy issued by Trinity which contained a specific "theft by false pretenses" endorsement excluding coverage unless Heshion had "full and valid title" to the automobile at the time of the loss. Following the theft Heshion notified Trinity of the loss. Trinity denied coverage on the ground Heshion did not have "full and valid title" on the date of loss  August 10.
Thereafter, Heshion sued, seeking a declaratory judgment on the issue of Trinity's liability under the "theft by false pretenses" endorsement. Both parties filed motions for summary judgment. The trial court sustained Heshion's motion ruling the language in the exclusion with regard to title was ambiguous and appellee's "possession, fully paid for, and with the right to sell and the ability to give good title" entitled it to coverage under the policy. The trial court also held it was immaterial whether the Jaguar was delivered to appellee on August 3rd or 4th, 1976, or whether the assigned certificate of title was delivered to appellee on August 19th or thereafter. The court further ruled there was no material issue of fact remaining.
On appeal to the Court of Appeals, Heshion Motors, Inc. v. Trinity Universal Ins. Co., 5 Kan. App.2d 432, 618 P.2d 327 (1980), the trial court judgment was reversed and judgment entered for Trinity. We accepted review.
The Honorable Chief Judge Harman, retired, stated in the Court of Appeals opinion at pages 434-36:
We accept the Court of Appeals rationale in Heshion but make the following modification. K.S.A. 1980 Supp. 8-135(c)(7) provides two methods for transferring title to a motor vehicle: the simultaneous delivery of the assigned certificate of title, which was recognized by the Court of Appeals; and a second procedure, where the parties agree at the time of delivery of the vehicle for delivery of the certificate of title at a later date, not to exceed fifteen (15) days. The latter method was improperly ignored by the Court of Appeals. We have repeatedly held in construing a statute the legislative intention is determined from consideration of the whole act, giving effect to every part, if possible. Hessell v. Lateral Sewer District, 202 Kan. 499, 449 P.2d 496 (1969); In re Estate of Diebolt, 187 Kan. 2, 14, 353 P.2d 803 (1960); Iola B. &amp; L. Ass'n v. Allen County Comm'rs, 152 Kan. 365, 103 P.2d 788 (1940).
We hold both methods of transfer are available. In the cases where the parties agree to a later date for delivery of the certificate of title, not later than fifteen (15) days, and delivery is made pursuant to the agreement, a full and valid title relates back to the date of delivery of the vehicle. It was not determined at trial if there was an agreement for a late delivery of title or if the certificate of title was delivered within fifteen (15) days. These are unresolved issues of fact.
We reverse the judgment of the trial court and remand the case for further proceedings consistent with this opinion.