London Assurance v. Lutfy Et Ux

Appellant, on September 19, 1947, issued to appellees, upon their oral application, an insurance policy insuring them against loss by theft of their Lincoln automobile. On October 28, the car was stolen. Appellant having denied liability, appellees brought suit and recovered a judgment for $5420, the asserted value. This appeal followed.

In September, 1947, Mrs. Lutfy, who lived in Phoenix, Arizona, went to Chicago, Illinois, for the purpose of purchasing a new Lincoln Continental automobile, which she had been told was then located on the premises of the Chicgo Motor Sales Co., the Chicago Lincoln dealer. A Phoenix dealer had advised her to, and she did, contact one Marciano, who showed her the car in the agency’s building, tie said it was a new 1947 model. After she had examined it, finding it, as she testified, to all intents and purposes, new and unused and of the kind and character represented, Marciano took her to the Exchange National Bank, which, it developed later, held a mortgage on the car. There, they met one Jordan, in whose name, she was informed, the title then stood. Mrs. Lutfy delivered to him a Western Union money order for $5600, which the bank, after…