483 P.3d 1204
Or. Ct. App.2021Background
- Sova bought a 2011 Dodge Ram from Lupekha on December 4, 2015, paying $9,800 cash plus a trade; Lupekha transferred title and Sova obtained DMV title, registration, insurance, and used the truck in his business for ~6 months.
- Vital Auto Brokers had previously purchased the same truck from Lupekha in June 2014 (salvage title) and claimed Lupekha later removed the truck from its lot for repairs and did not return it.
- Lupekha obtained a replacement title in December 2015 and sold the truck to Sova; DMV records later showed Sova as the titleholder and initially issued then "expelled" a title issued to Vital as an error.
- Vital located the truck in May 2016, had it towed, and asserted superior title; Sova sued for conversion and fraud and sought return of the truck; Vital counterclaimed.
- At trial, the court credited a third‑party handwritten affidavit’s hearsay suggesting Sova knew of Vital’s prior ownership and ruled for Vital, awarding title to the dealer.
- On appeal, the court considered whether DMV title and the transaction established Sova as a bona fide purchaser and whether Vital rebutted that prima facie showing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who lawfully owns the truck; was Sova a bona fide purchaser? | Sova obtained and recorded DMV title, paid valuable consideration, acted in good faith, and DMV record is prima facie ownership evidence. | Vital argued it previously purchased the truck from Lupekha and that Sova knew or should have known of Vital's prior interest (offering hearsay to suggest notice). | DMV title is prima facie evidence of ownership; Vital failed to legally rebut that evidence; Sova was a bona fide purchaser and entitled to possession. |
Key Cases Cited
- Fisher v. Pippin, 40 Or. App. 421 (1979) (ownership of a vehicle is ordinarily a question of fact)
- Valley Motor Co. v. Ralls, 224 Or. 290 (1960) (the DMV record of title is prima facie evidence of ownership)
- Gorzeman v. Thompson, 162 Or. App. 84 (1999) (elements and protection of a bona fide purchaser)
- Brunk v. Horton, 280 Or. 239 (1977) (burden rests on opponent to rebut prima facie title evidence)
- South Seattle Auto Auction, Inc. v. Ladd, 230 Or. 350 (1962) (loss should fall on the party whose conduct enabled the third party's wrong)