Michigan Court of Appeals; Docket No. 141584; Unpublished
Judges Holbrook, Jr., Gribbs, and Sawyer; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Motor Vehicle Code (Civil Liability of Owner) (MCL 257.401)
Motor Vehicle Code (Registration and Title Requirements) (MCL 257.201, et seq.)
CASE SUMMARY:
In this unanimous per curiam unpublished Opinion, the Court of Appeals interpreted the statutory provisions of MCLA 257.219(2)(a) concerning fraudulent statements contained in a transfer of title application and whether such defects cause the attempted transfer by a dealer to be ineffective, thereby making the dealer liable for injuries sustained as a result of an accident occurring while the purchaser of the vehicle was operating the vehicle.
In this case, Greenfield Jeep Eagle sold a vehicle to a purchaser, who claimed that he had insurance for the vehicle. Jeep Eagle did not obtain verification or require presentation of the certificate of insurance. Jeep Eagle issued the purchaser a temporary 10-day registration and filed the necessary forms with the Secretary of State's office indicating that the car was insured and stating that the policy was new, without listing a policy number. Based upon this information, the Secretary of State issued a certificate of title to the purchaser. Thereafter, an accident occurred seriously and permanently injuring the plaintiff. The purchaser of the vehicle had never obtained insurance coverage and later filed bankruptcy to discharge plaintiffs judgment in the amount of $250,000.
Plaintiff brought suit against Jeep Eagle claiming that because Jeep Eagle had failed to comply with the statutes providing for transfer of ownership, and because Jeep Eagle had erroneously completed the forms, ownership of the vehicle was never effectively transferred.
On appeal from the trial court's grant of summary disposition in favor of Jeep Eagle, the Court of Appeals held that automobile dealers retain ownership of the cars they sell until they comply with the statutory provisions for transferring title to the purchasers. A valid certificate of title cannot be issued if the application contains a false or fraudulent statement MCLA 257.219(2)(a). The court held that there were sufficient allegations in this case to create a question of fact regarding whether the attempted transfer of title in this case actually transferred ownership of the vehicle from the dealer to the purchaser. Therefore, the trial court grant of summary disposition in favor of Jeep Eagle was reversed.
