Court Opinion

ID: 9625576
Source: CourtListenerOpinion
Date Created: 2023-08-22 07:44:57.251043+00
Date Added: 2024-06-11T18:06:11.167068
License: Public Domain

ELLETT, Justice
(dissenting):
Unfortunately the decision reached by the court in this case is not supported by the facts nor the cases cited and therefore I respectfully dissent.
In early January of 1973 Dr. Melvin L. Matlock’s father-in-law offered to sell a 1951 one and one-half ton truck from a liquidating canning company in Ogden. After checking with his farm manager in Delta, Colorado, respondent agreed to buy the truck for use on his farm. He went to the North Ogden Canning Company, inspected the vehicle and sat in it while a Mr. Randall started it. Because respondent had no immediate use for the truck the keys and vehicle were left at the canning company. Randall signed over the title on January 5, 1973, and respondent drew a check for $750 dated January 9, 1973, from his farm account. Sometime later Dr. Matlock mailed the title and registration to a Mr. Horton, manager of respondent’s farm in Delta, Colorado. Because of a busy work schedule Horton was unable to take possession of the truck until April.
Prior to getting the vehicle Horton re-registered it and secured a Colorado title. The new title listed January 5, 1973, as the date of purchase.
On April 6, 1973, respondent and Horton got the truck from the Canning property and took it to respondent’s house in Ogden. The next day Horton drove the truck to Colorado, where later in the evening he was involved in an accident. The same day, April 7, 1973, respondent mailed a letter advising the defendant he had purchased and put in service effective that date a used one and one-half ton truck which he would like insured for liability only with the same coverage as the.Ford truck he had under Policy No. 506-14-76-1.
Respondent’s policy provided for automatic coverage of newly acquired vehicles if (among other things) three provisions were met: (1) that the insurance company be informed within 30 days after acquisition; (2) that all respondent’s vehicles be insured with defendant; and (3) that the vehicle not have a weight capacity greater than 1,500 lbs.
The majority holds that acquisition was not until April 6, 1973, when respondent actually drove away with the truck, citing Yahnke v. State Farm Fire and Casualty Co., 4 Ariz.App. 287, 419 P.2d 548 (1966) as authority. This case holds exactly the opposite. The Arizona court said that the 30-day period began to run when respondent became the “owner” of the vehicle. This was January 5, 1973, for Dr. Matlock. Other jurisdictions have affirmed the principle that possession is not a requirement of ownership. (Commercial Standard Insurance Co. v. Universal Underwriters, 282 F.2d 24 (1960, 10th Circuit, Okl.); Wisbey v. Nationwide Mutual Insurance Co., 264 Or. 600, 507 P.2d 17 (1973)).
The other cases cited by the majority in support of its rule are not on point.
Black’s Law Dictionary defines “acquisition” as the act of becoming the owner of *907property, or the act by which one acquires or procures the property. In the past courts have placed primary emphasis on the intentions of the parties in determining whether ownership has been established (United States Fidelity & Guaranty Co. v. Minault, 96 N.H. 168, 72 A.2d 161 (1950) ). There can be no doubt from the facts of this case that respondent intended to acquire ownership in the truck on January 5, 1975, when title was delivered to him. From that point on the'30-day automatic coverage began to run.
The second requirement in question here was the necessity for all respondent’s vehicles to be covered by defendant. This provision was clearly set forth in bold print on the front page of the policy. The record does not show whether any exceptions were ever made to this requirement. However, the sound administrative policy behind such a rule limits unnecessary liability for the insurance company as well as provides definite coverage for clients during periods of vehicle exchanges. The undisputed facts reveal that respondent did not have all his cars insured with defendant. Respondent knew or should have known he would not be covered under the automatic provision if he failed to meet this policy requirement. The majority attempts to place the responsibility on defendant to inform all its clients every time one fails to qualify under any provision within their policy. Such a burden is as impractical as it is unfair. Defendant did not expressly or implicitly waive this requirement.
The third condition respondent breached was that his truck exceeded the maximum insurable load capacity by more than twice the limit. Respondent’s policy specifically stated that a farm automobile like a truck have a load capacity of 1,500 lbs. or less. Respondent purchased a one and one-half ton truck (3,360 lbs.). Clearly, defendant could have elected to insure respondent’s “overweight” truck had it waived this provision. But defendant has continually represented that it intended to have the literal meaning of this provision enforced. The court here rationalizes that this provision was a mere guideline. The majority’s point might have some merit if the difference was not so great.
The concurring opinion raises some “sort of estoppel” theory. Yet on the face of the facts it is clear that defendant never intended or represented that it would insure respondent’s truck on any basis other than what was stated in his policy. Respondent owned the truck for more than four months before attempting to notify defendant of its acquisition. Therefore, defendant should not be subject to liability due to respondent’s procrastination, indecision or error.