Butler v. Farmers Ins. Co. of Arizona

HAYS, Justice.

This cause was submitted to the trial court upon the following stipulated facts: In 1976, plaintiff-appellant, James Butler, purchased a 1967 Austin-Healy for $3,500. Receiving an Arizona Certificate of Title pursuant to the sale, appellant was unaware that the vehicle had been previously stolen. Approximately two years after the purchase, the automobile was seized by Tucson police and returned to its lawful owner.

At all times relevant hereto, appellant was insured against loss of the vehicle by defendant-appellee, Farmers Insurance Co. of Arizona. It is the insurer’s denial of…