Date: 12-02-1997

Case Style: ESTATE OF JAMES EDDIE WILLIAMS, BY EVELYN WILLIAMS AS ADMINISTRATOR; AND METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY v. JUDER STIDHAM PONTIAC-BUICK-GMC, INC.; TOM RAINES IN HIS OFFICIAL CAPACITY AS WHITLEY COUNTY CLERK; WHIT

Case Number: 1996-CI-191

Judge: Jerry D. Winchester

Court: Circuit Court, Whitney County, Kentucky

Plaintiff's Attorney: William L. Davis, Lexington, Kentucky

Defendant's Attorney: R. Craig Reinhardt of Fowler, Measle & Bell, LLP, Lexington, Kentucky, attorney for Juder Stidham Pontiac-Buick-Gmc, Inc.

Description: Juder Stidham Pontiac-Buick-GMC, Inc. is a licensed motor vehicle dealer transacting business in the Commonwealth of Kentucky in Whitley County, Kentucky.

On or about August 22, 1995, Juder Stidham Pontiac-Buick-GMC, Inc. sold a 1995 Pontiac Firebird to Lawrence Crawford, Jr. Mr. Crawford executed the vehicle transaction record, an odometer statement, a buyer's order and, with a trade-in provided by his mother, paid in full the purchase price of $20,754.00. Thereafter, Juder Stidham Pontiac-Buick-GMC, Inc. assigned the 1995 Pontiac Firebird to Mr. Crawford, the purchaser, for his use on the public highways of the Commonwealth of Kentucky.

On or about August 24, 1995, Juder Stidham Pontiac-Buick-GMC, Inc., with the consent of Lawrence Crawford, Jr., the purchaser, delivered the assigned Certificate of Title and the executed Vehicle Transaction Record of the 1995 Pontiac Firebird directly to the Whitley County Clerk's Office and on behalf of Mr. Crawford, the purchaser, made application for registration and certificate of title.

Juder Stidham Pontiac-Buick-GMC, Inc. never obtained any documentation of any proof of insurance from Mr. Lawrence Crawford, Jr., the purchaser, before delivering possession of the 1995 Pontiac Firebird to him.

At the time Juder Stidham Pontiac-Buick-GMC, Inc. made application for registration and a certificate of title on behalf of Lawrence Crawford, Jr., the purchaser, it did not have proof of insurance from him.

On or about August 24, 1995, a title and registration was issued by the Commonwealth of Kentucky to Juder Stidham Pontiac-Buick-GMC, Inc. in the name of Larry Crawford, Jr., the purchaser.

On or about October 5, 1995, Lawrence Crawford, Jr., was operating the said 1995 Pontiac Firebird with Mr. James Eddie Williams as a passenger in Bowling Green, Warren County, Kentucky, on Interstate 65 whereby a motor vehicle collision occurred in which the decedent, Mr. Williams, sustained personal injuries resulting in his death. Also, Lawrence Crawford, Jr., decedent, sustained personal injuries resulting in his death.

In addition to the foregoing, the parties agreed that Crawford did not have a motor vehicle insurance policy in effect either at the time he purchased the car or at the time of the accident.

Evelyn Williams, acting as administrator of the estate of James Eddie Williams, brought a wrongful death action against Crawford's estate. Williams's estate also brought a complaint against Juder Stidham Pontiac-Buick-GMC, Inc. (Juder Stidham), alleging that Juder Stidham's failure to require Crawford to show proof of insurance, in violation of KRS 186A.220 (5), was a contributing factor in Williams's death. Metropolitan Property and Casualty Insurance Company filed an intervening complaint to obtain subrogation of basic reparation and uninsured motorists benefits which it paid to the Williams estate.

On December 2, 1997, the trial court entered a partial summary judgment on behalf of the Williams estate and Metropolitan, as to liability on the wrongful death claim against Crawford's estate. The trial court reserved the issue of damages for later adjudication. In a separate order, the trial court entered a partial summary judgment on behalf of the Williams estate against Juder Stidham, finding no factual dispute that Juder Stidham's failure to obtain proof of insurance from Crawford constituted a violation of KRS 186A.220 (5). However, the trial court further held that Juder Stidham's liability for this violation was limited to the minimum motor vehicle insurance requirements imposed upon Crawford pursuant to KRS 304.39-110, which is $25,000.00.

Outcome: The jury returned a verdict against the Crawford estate in the amount $1,348,272.05. The trial court entered an order allowing Metropolitan to recover $110,000.00 from the judgment, leaving a judgment of $1,238,272.05 for the Williams estate. Juder Stidham tendered its full liability of $25,000.00 to the Williams estate following the judgment. The Williams estate and Metropolitan now appeal.

Plaintiff's Experts: Unknown

Defendant's Experts: Unknown

Comments: Affirmed by the Court of Appeals of Kentucky on July 23, 1999.