Universal Underwriters Insurance v. Winton, 818 F.3d 1103

On Nov. 9, 2007 Moore delivered a Chrysler to dealer Marc Heitz Auto Valley; on Nov. 11 Sofia Roberts (who had the car) caused a crash killing five and injuring others. Roberts died; estates/survivors obtained multi‑million dollar judgments but execution was limited to available insurance.
Roberts’s personal insurer Allstate paid the Oklahoma statutory minimum liability limit of $50,000. Victims obtained judgments limited to insurance sources beyond that amount.
Three insurers for the dealerships (Universal for Heitz; Phoenix and National for Moore) sought declaratory judgments that their policies did not cover Roberts’s liability. The district court granted summary judgment to the insurers; Victims appealed.
Key factual dispute relevant to Phoenix/National: Moore had delivered the car to Heitz but did not transfer the certificate of title until after the accident.
Key contractual issues relevant to Universal: the Universal garage coverage’s “Most We Will Pay” language, an Oklahoma amendatory endorsement altering the other‑insurance clause, and whether Universal’s umbrella policy covered Roberts.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Scope of Universal garage coverage (liability to a dealer's customer)	Universal’s garage excess language plus Oklahoma amendment makes Universal liable up to policy limits ($300,000) in excess of Allstate	Garage coverage for a dealer’s customer is limited to supplying only the statutory minimum ($50,000) and is excess to the customer’s personal policy	Universal’s garage coverage only supplies whatever is needed to reach Oklahoma’s $50,000 statutory minimum; Allstate paid $50,000, so Universal owes nothing
Universal umbrella coverage (whether Roberts is an insured)	Umbrella should cover personal liability of a person using a dealer’s auto; argument that policy reading would nonsensically leave many employees uncovered	Umbrella explicitly limits insureds to persons listed in declarations (Named Insured/Designated Persons); Roberts is not listed	Roberts is not an insured under the umbrella; umbrella does not cover her liability
Ownership of the Chrysler (liability under Moore’s Phoenix and National policies)	Transfer of title not completed before accident, so Moore remained owner and its policies cover Roberts	Under Okla. UCC and controlling state precedents, ownership passed on delivery with intent to sell; title certificate is not dispositive	Ownership passed to Heitz on delivery Nov. 9 despite title not being transferred; Moore was not owner at time of accident, so Phoenix and National do not cover Roberts

Automax Hyundai S., LLC v. Zurich Am. Ins. Co., 720 F.3d 798 (10th Cir.) (applies de novo review and Oklahoma law in diversity insurance disputes)
Broom v. Wilson Paving & Excavating, Inc., 356 P.3d 617 (Okla. 2015) (insurance contracts are interpreted in their plain meaning; ambiguities construed against insurer only if genuinely susceptible to two meanings)
Equity Mut. Ins. Co. v. Spring Valley Wholesale Nursery, Inc., 747 P.2d 947 (Okla. 1987) (distinguishes escape clauses from excess‑only clauses in insurance contexts)
Medico Leasing Co. v. Smith, 457 P.2d 548 (Okla. 1969) (sale of automobile complete upon delivery with intent to sell; certificate of title not controlling)
Green v. Harris, 70 P.3d 866 (Okla. 2003) (motor vehicle certificates of title are documents of convenience and not necessarily conclusive of ownership)
Sutton v. Snider, 33 P.3d 309 (Okla. Ct. App. 2001) (absence of certificate of title does not invalidate a sale; ownership can pass despite title retention by seller)
Empire Fire & Marine Ins. Co. v. Keifer, 483 F. Supp. 2d 591 (N.D. Ohio) (discussed by parties; court here rejected its reasoning as inapplicable to Universal umbrella language)