Dolores Zepeda v. Central Motors, Inc.

Summary

The Kentucky Supreme Court affirmed summary judgment for Central Motors in a dispute over statutory ownership of a vehicle involved in an automobile accident. The Court held that Central Motors substantially complied with KRS 186A.220 by notifying the county clerk through its title and registration submission before the accident, despite not filing the prescribed acquisition form or paying the transfer fee. Because the vehicle had been sold and delivered to Garcia pursuant to a bona fide sale, Garcia—not Central Motors—was the statutory owner at the time of the accident.

Holdings

1. A licensed motor vehicle dealer substantially complies with KRS 186A.220 when it accomplishes the statute's notice and title-transfer purpose before the accident, even if it does not strictly satisfy the fifteen-day timing requirement or use the Transportation Cabinet's TC 96-183 form.
2. Garcia was the statutory owner of the BMW on August 14, 2014, and Central Motors was not the statutory owner.
3. Nantz does not control because it interpreted the pre-1994 statutory scheme, whereas the current statutes provide that ownership may transfer upon delivery of the vehicle to the purchaser when the dealer substantially complies with KRS 186A.220.

Questions Presented

1. Whether Central Motors substantially complied with KRS 186A.220 despite not filing the TC 96-183 notice form and despite the required transfer fee not being collected before the accident.
2. Whether ownership transferred to Garcia upon delivery of the vehicle pursuant to a bona fide sale and submission of the required title documents, even though the Kentucky certificate of title was issued after the accident.
3. Whether summary judgment for Central Motors was proper.

Disposition

affirmed