State Farm Mutual Automobile Ins. v. Valentine

279 N.E.2d 630, 29 Ohio App. 2d 174, 58 Ohio Op. 2d 238, 1971 Ohio App. LEXIS 430
CourtOhio Court of Appeals
DecidedSeptember 14, 1971
Docket71-142
StatusPublished
Cited by7 cases

This text of 279 N.E.2d 630 (State Farm Mutual Automobile Ins. v. Valentine) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Farm Mutual Automobile Ins. v. Valentine, 279 N.E.2d 630, 29 Ohio App. 2d 174, 58 Ohio Op. 2d 238, 1971 Ohio App. LEXIS 430 (Ohio Ct. App. 1971).

Opinion

Troop, P. J.

This appeal is from a judgment of the Franklin County Municipal Court, entered April 13, 1971, on questions of law. The entry followed and reflected the sustaining of the defendant’s motion for summary judgment and the dismissal of a similar motion made by the plaintiff. The single assignment of error claimed by the appellant in support of its appeal is that the trial court erred in the sustaining and the overruling of the motions for summary judgment as noted.

Appellant, State Farm, was the plaintiff in the trial court in an action in replevin. An affidavit is attached to the complaint in which the plaintiff says that it is the owner of a certain Impala Chevrolet by virtue of a certificate of title issued by the state of Illinois. In answer to the complaint in replevin, the defendant, Paul Eugene Valentine, simply “denies each and every allegation therein contained.” Plaintiff, in the affidavit attached to its complaint, says, however, that the defendant claims ownership by virtue of an Ohio certificate of title ‘‘ issued upon a fake and fraudulent Illinois certificate of title procured by the thief.” Such certificate of title is attached to the memorandum of the defendant in support of his motion for summary judgment.

No trial was had in this case, the procedure follow *176 ed being that prescribed in Civil Rule 36. The plaintiff made a request for admissions consisting of 12 specific statements of fact basic to the case. The second portion of the demand recited that the Supreme Court decision in Hardware Mutual Casualty Co. v. Gall (1968), 15 Ohio St. 2d 261, “is determinative of all of the issues in this case.” In his answer to the demand of the plaintiff, the defendant said that the 12 statements of fact are true and agreed that the decision in Gall is determative of all the issues in the case.

In connection with the judgment entered, the trial court rendered, and filed, its ‘ ‘ decision, ’ ’ in which it is said:

“The parties agree that a thief cannot convey valid title to a stolen motor vehicle to a bona fide purchaser for value without notice.”

And then the court observes that the parties differ only as to whether the “agreed facts” constitute a theft and whether there is a question of estoppel arising from an act of the owner.

The 12 basic facts set out in plaintiff’s demand seem difficult to summarize, but the most pertinent need to be noted. Plaintiff’s insured, Olga Ziesemer, owned the Impala and delivered it and a certificate of title endorsed in blank to one “Will T. Hyde,” who gave her, at her Illinois home, a cashier’s check, on the Security First National Bank of Los Angeles, in the sum of $2,300. The check turned out to be a forged, counterfeited check. Mrs. Ziesemer made claim to her insurer, the plaintiff, under the “theft” coverage of her policy, and was paid the sum of $2,300.

Defendant, Valentine, paid “Wayne M. Mott” $1,900 for the Impala at a motel in Columbus, Ohio, and received therefor an Illinois certificate of title, which he then translated into an Ohio certificate of title under which he claimed ownership. It developed that “Hyde” and “Mott” were one “Winfield Nairn MacQueen,” who was apprehended for a series of automobile transactions, interstate in character, and who, upon arraignment, pleaded guilty. After imposition of sentence MacQueen committed suicide in his jail cell.

*177 It appears that State Farm recovered a part of the amount paid to its insured from MacQueen’s small estate, which fact need not confuse this discussion at this point.

Appellee, Valentine, takes the position that MacQueen was not a thief under Ohio law. The trial court must have given thought to that factor when observing that the owner, Ziesemer, voluntarily relinquished possession of her automobile. For approximately forty years under Ohio law the position taken by appellee would have undoubtedly been correct, but a decision by the Supreme Court in Munchick v. Fidelity & Casualty Co. (1965), 2 Ohio St. 2d 303, seems to provide an answer to the question posed in this appeal. The rule announced in paragraph two of the syllabus of Munchick is as follows:

“Where the term, ‘theft,’ is used but not defined in an insurance contract drafted by the insurer, it includes any wrongful deprivation of the property of another without claim or color of right.”

At page 305, the court elaborates, saying:

“Although the term, ‘theft,’ is often used in a popular sense to mean larceny, the terms are not synonymous. Theft is a broader term than larceny and includes other forms of wrongful deprivation of the property of another. ’ ’

Specifically, the court overruled its previous decision in Royal Ins. Co. v. Jack (1925), 113 Ohio St. 153.

The act of MacQueen (Hyde) in securing the Impala by the use of a forged, counterfeited check, could well qualify as larceny by trick under our Ohio statute, but the Supreme Court says that it is also a “theft,” as to insurance coverage, if an insurer fails to carefully define the term in the provisions contained in its policy. A “theft,” as it seems in the instant case, would make MacQueen (Mott) a thief. It is clearly a “theft” as to the coverage afforded Mrs. Ziesemer.

Counsel for the parties to this cause agreed that the decision in Hardware Mutual Casualty Co. v. Gall, supra (15 Ohio St. 2d 261), represents the law of Ohio and “is determinative of all of the issues in the case. ’ ’ The Supreme Court held, in paragraph one of the syllabus of Hardware *178 Mutual, R. C. 4505.01 et seq. “docs not abrogate tho rule that the law of the state in which a chattel is located at the time of the transaction in question determines the creation and transfer of interests in the chattel. ’ ’ It seems clear that the law of Ohio, statutory and decision law, is applicable to the sale of the Impala by “Mott,” or MacQueen, to the defendant, Valentine. This, of course, assumes such to be “the transaction in question.”

Paragraph three of the syllabus is also important to this discussion. It says that under Ohio certificate of title law, “absent any question of estoppel arising from an act of the owner, a thief cannot convey valid title to a stolen motor vehicle to a bona fide purchaser for value without notice, although the certificate of title used in the purported transfer appears valid on its face.”

The relatively new approach to the trial of this cause, as well as other facets of the case, seem to have presented as many problems to the trial court as are presented to confuse this Court of Appeals. The decision of the trial court indicates that the court, as well as the parties, looked to the decision in Hardware Mutual, supra. Examination of the “decision” of the trial court indicates that the court found Mrs. Ziesemer’s act of endorsing a certificate of title in blank as creating estoppel. It appears clear also that the trial court found Valentine as without notice of any irregularity.

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Cite This Page — Counsel Stack

Bluebook (online)
279 N.E.2d 630, 29 Ohio App. 2d 174, 58 Ohio Op. 2d 238, 1971 Ohio App. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-mutual-automobile-ins-v-valentine-ohioctapp-1971.