Farm Bureau Mutual Ins. Co. v. Carr

The opinion of the court was delivered by The primary issue in this case is whether an insured who loses
his automobile through fraud is entitled to recover its value
from his insurance company under his policy's "comprehensive
loss" coverage. A secondary issue involves the rights of the
insured (or his subrogated insurance carrier) against a third
party who innocently purchased the car from the perpetrator of
the fraud. Farm Bureau Mutual Insurance Co. brought this
declaratory judgment action against its policyholders, Mr. and
Mrs. Bobby D. Carr, and against the third party purchaser, a used
car dealer named Duane Bordwell. The Carrs counter-claimed for
the reasonable value of their car. (Other pleadings are
irrelevant in view of the outcome.) Trial was to the court, and
it held that the loss was covered by the policy, and further,
that the company had no right to recover over against Bordwell.
Farm Bureau has appealed, contending that either one or the other
of these rulings must be erroneous. The Carrs have cross-appealed
from a ruling denying them attorney fees. In June, 1971, the Carrs owned a 1968 Oldsmobile Cutlass which
was insured by Farm Bureau. The car was used by their son, but
was titled in the names of "Bobby D. and/or Phyllis J. Carr."
They decided to sell it, and advertised it for sale in the
newspaper. On the afternoon of June 3 the ad drew a response from
a smooth [215 Kan. 593]