American Family Mutual Insurance Co v. Coke

358 S.W.3d 576 (2012)

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Nature of the Case

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Facts

Ds purchased the RV for $149,500 plus a trade-in of a Ford F450. The RV was titled in the name of and therefore owned by, Toy Hon USA, a company owned by Ferrell (D). Coke (D) took possession of the RV in California and drove it to Las Vegas, where she was met by Ferrell (D). In Las Vegas, Ds spent approximately $1,000 repairing a fuel leak that developed in the RV and purchased a warranty for the RV for $6,000. After spending some time in Las Vegas, Ds drove the RV to St. Louis. In February 2008, Ds purchased an insurance policy on the RV from P. Ds took several trips in the RV, including trips to southern Missouri to fish, and to Chicago and Memphis. After purchasing the RV, Ds decided to use it to live in while they built a house on some property they owned in Alabama. Ds built a building to store the RV, which included installing two large doors at a cost of $4,000. Coke (D) testified that Dss spent $6,300 replacing the RV's tires. In November 2008, Ds drove the RV to their Alabama property, where they spent 5 to 6 days. Ds repaired a water leak in the RV. Ds left Alabama and drove to Arizona where they stayed for 10 days visiting a sick friend and sightseeing. Ferrell (D) then flew back to St. Louis while Coke (D) decided to stay in Arizona for a while longer. On November 25, 2008, Coke (D) was staying at an RV park in Mesa, Arizona when she decided to drive the RV into the nearby mountains to spend the night. While driving, Coke (D) became concerned about the RV's brakes and decided to turn around. Coke (D) parked the RV on the shoulder of the highway and got out to check a hissing noise coming from the back of the RV. While walking next to the RV, it began to roll, eventually rolling down a ravine. Ds were the named insureds in the RV policy. Ds made a claim and continued to pay premiums on the RV for 14 months after the accident. P ultimately refused to pay the claim. P filed a declaratory judgment action to determine coverage and Ds filed a counterclaim alleging breach of the insurance contract. At the close of all the evidence, P moved for a directed verdict on Ds' counterclaim for breach of contract and vexatious refusal to pay on the grounds that Ds were not the real parties in interest entitled to bring a cause of action for damages because the RV was not titled in their name. The trial court granted P's Motion for Directed Verdict. Ds appealed.