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Wade v. Autoland5/26/2000
The defendants, Autoland, Inc., and American Equity Insurance Company ("American Equity"), appeal a judgment awarding damages to the plaintiffs, Jay P. Wade III, Kristy Wade and Mary Taylor on behalf of her minor daughter, Jewell Taylor. The trial court found that the automobile involved in the accident was owned by Autoland and was covered under its liability insurance policy. For the following reasons, we reverse and render.
FACTS
On June 7, 1996, Jay Wade was driving his pickup truck on Apple Street in Monroe, Louisiana. Wade's passengers were his daughter, Kristy Wade, and Jewell Taylor. At the intersection with First Street, Wade's vehicle was struck in the passenger side by a tan 1978 Chevrolet station wagon. The driver of the automobile failed to yield at a stop sign and then left the accident scene. Wade and his passengers later identified the driver of the other vehicle as Jason Weeks.
Monroe Police Officer Mark Kemp investigated the hit-and-run accident and issued a description of the other vehicle over the radio. While at the scene, Officer Kemp was notified that a station wagon had been located in the area and that it was on fire. Officer Kemp inspected the burning vehicle and determined from the damage that it had been involved in the accident. He also observed that a dealer license plate was attached to the car. During his investigation, Kemp was approached by Ricky Sewell. According to Officer Kemp, he was told by Sewell that the vehicle was owned by Autoland, and that its employee, Dwight May, had allowed Sewell to test drive the automobile. Sewell also stated that at the time of the accident, the vehicle had been stolen from his place of business.
Following the accident, Kristy Wade and Jewell Taylor were treated at St. Francis Medical Center for back pain. Both women sought treatment with Dr. Douglas Cook, who recommended physical therapy. After participating in approximately two weeks of physical therapy, Kristy and Jewell were released without any limitations by Dr. Cook. The total medical expenses were $1,795 for Kristy and $1,861 for Jewell. Jay Wade did not seek medical treatment, but his truck was declared a total loss. The plaintiffs filed a petition for damages against the defendants, Autoland and its insurer, American Equity. A stipulation was filed into the record providing that State Farm Mutual Automobile Insurance Company had been subrogated to the rights of Jewell Taylor to the extent of $4,061.
At trial, testimony established that Autoland acquired the 1978 Chevrolet in July 1995. The parties dispute the ownership of the vehicle at the time of the accident. According to the defendants, Dwight May was a former salesman at Autoland who purchased the vehicle from the dealership in a credit sale on October 18, 1995. May signed a promissory note, the title and the bill of sale and took possession of the vehicle. On the following day, the sale was recorded in a used car ledger kept by the dealership as required by the state.
In contrast, the plaintiffs presented testimony indicating that Autoland owned the vehicle. Officer Kemp testified that he contacted Autoland and spoke with a woman who identified herself as the manager. When he described the station wagon and reported the license plate number to the manager, she stated that the dealership owned the vehicle and that the dealer license plate had been assigned to Autoland.
Subsequently, the trial court found that at the time of the accident, Autoland owned the station wagon, that May was an employee with access to the dealer plates, and that he had allowed Sewell to drive the vehicle in order to make a sale on Autoland's behalf. The court also f
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