Oregon Court Of Appeals Finds That If Driver Has Any Ownership Interest in Car, He Is Not A Driver "With Consent" And Thus Not an "Insured" Under the Owner's Auto Policy
Weber v. State Farm Mutual Automobile Ins. Co. (Or. Ct. App. Nov. 28, 2007)
The Teuberts were injured when the car they were traveling in was struck by a car driven by Ronningen. The car driven by Ronningen was insured by State Farm under a policy issued to Weber. Weber and Ronningen lived together and when Weber expressed a desire to purchase a car, she paid $1,000 towards the purchase of a car with Ronningen signing a note for the $20,000 balance. The note stated it was consideration for sale of the car to Ronningen, and the bill of sale identified Ronningen as the buyer. Ronningen completed and submitted an Oregon DMV application for the title and registration of the car, listing himself as the sole owner and took title to the car despite the understanding that the car would be Weber’s. After the purchase, Weber added the car to her State Farm policy and paid the insurance premiums. On the day of the accident, Ronningen asked Weber for permission to use the car. In the report filed with the DMV regarding the accident, Ronningen listed himself as the owner of the car.
The Teuberts sought damages from Ronningen for their injuries and Ronningen sought coverage under Weber’s State Farm policy. The policy stated State Farm would defend and indemnify “an insured.” Additionally, under the policy “insured” included any person driving with Weber’s consent. The Court of Appeals affirmed the trial court’s determination that Ronningen maintained some type of ownership interest in the car and thus was not a driver with Weber’s “consent” to use the car for the purposes of the policy. The court determined that a certificate of title to a vehicle, which Ronningen had to the car, was prima facie evidence of ownership and that the evidence did not support a finding that Ronningen had no ownership interest in the car. Accordingly, the grant of summary judgment to State Farm was affirmed.
