358 S.W.3d 576
Mo. Ct. App.2012Background
- Respondent issued an RV insurance policy to Appellants in 2008, covering the Monaco RV involved in a later accident.
- Appellants purchased the RV, paid substantial sums, and used the RV personally, including modifying storage on their property.
- The RV was titled in the name of Toy Hon USA, not Appellants, yet they maintained insurance and paid premiums after the loss.
- Respondent denied the claim for property damage, and the trial court granted a directed verdict on Appellants' breach of contract and vexatious refusal claims.
- Appellants argued they had an insurable interest despite lack of title and that the insurer must pay under the policy.
- The appellate court reversed and remanded for further proceedings to determine insurable interest and coverage.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Insurable interest without title | Coke and Ferrell had an insurable interest due to purchase and use. | Lack of title defeats insurable interest for coverage. | Insurable interest exists despite lack of title; directed verdict reversed. |
| Effect of title on enforcement of insurance contract | Title is not required to enforce the policy when insurable interest exists. | Title requirements restrict recovery under the motor vehicle statute and policy. | Title not prerequisite; insurable interest supports coverage. |
| Submissibility of Appellants' counterclaim | Evidence shows substantial insurable interest and losses. | Trial court correctly directed verdict based on lack of title. | Submission proper; trial court erred, evidence supports counterclaim. |
Key Cases Cited
- Dimmitt v. Progressive Cas. Ins. Co., 92 S.W.3d 789 (Mo. banc 2003) (insurable interest may arise apart from title and registration)
- DeWitt v. Am. Family Mut. Ins. Co., 667 S.W.2d 700 (Mo. banc 1984) (insurable interest required at contract formation and loss)
- Puritan Ins. Co. v. Yarber, 723 S.W.2d 98 (Mo. App. E.D. 1987) (registration requirements do not always bar insurable interest)
- Guidry v. Charter Commun., Inc., 269 S.W.3d 520 (Mo. App. E.D. 2008) (standard for reviewing directed verdicts and submissible cases)
- Blue v. Harrah's N. Kansas City, LLC, 170 S.W.3d 466 (Mo. App. W.D. 2005) (submissibility and evidentiary standards on directed verdicts)
- Kiesel Co. v. J & B Properties, Inc., 241 S.W.3d 868 (Mo. App. E.D. 2008) (evidence sufficiency and inferences in Missouri appeals)