MISSOURI MEXICAN PRODUCTS v. DUNAFON No. WD 48165.
873 S.W.2d 282 (1994)
MISSOURI MEXICAN PRODUCTS, INC., Appellant, v. Sandy L. DUNAFON, Respondent.
Missouri Court of Appeals, Western District.
March 29, 1994.
Denise E. Thompson, Jefferson City, for respondent.
Before TURNAGE, P.J., and LOWENSTEIN and FENNER, JJ.
When Darrell and Sandy Dunafon were divorced, an antique Ford was awarded to Ms. Dunafon from the marital estate. Later, a corporation controlled by Mr. Dunafon sought to replevy the car from Ms. Dunafon, claiming ownership of the vehicle. The trial court in the replevin action held that the corporation's claim was precluded by the doctrine of collateral estoppel. The corporation appeals.
Judgment is affirmed.
Missouri Mexican, appellant, is a Missouri corporation solely owned and controlled by Darrell Dunafon. On April 24, 1985, Mr. Dunafon purchased a 1928 Ford automobile from William and Norma Rippee. On July 11, 1985, Missouri Mexican issued a check in the amount of $10,000 to Mr. Dunafon to pay him for the automobile. The car was stored at the Dunafons' residence. The Dunafons' marriage was dissolved on May 9, 1990, but the dissolution court did not rule on property issues until August 30, 1991. In its August 30, 1991, order, the trial court found that the 1928 car was personal property in the possession of Sandy Dunafon, and the court awarded the car to Ms. Dunafon. There is no indication in the record that Mr. Dunafon appealed that order.
On November 28, 1990, after the dissolution but before property issues had been resolved, Mr. Dunafon filed an application for Missouri Title and License for the automobile. The automobile was titled on November 28, 1990, with the record owner shown as: "Missouri Mexican Products, Inc/Dunafo."
Missouri Mexican filed its petition for replevin in March, 1992, seeking return of the 1928 automobile and other property. Ms. Dunafon filed a motion for summary judgment on June 4, 1993, relying upon the adjudication in the dissolution case. The trial court granted Ms. Dunafon's motion for summary judgment, declaring that Missouri Mexican was collaterally estopped from relitigating the issue of possession of the car because the issue had been decided in the prior divorce action.
Missouri Mexican's sole point on appeal is that the trial court erred in granting the motion for summary judgment because collateral estoppel cannot be used against Missouri Mexican since it was not a party to the dissolution action and had no opportunity to litigate its right to possession of the automobile in the dissolution action. Upon review of a ruling for summary judgment, an appellate court views the record, and all reasonable inferences to be drawn therefrom, in the light most favorable to the non-moving party. Gast v. Ebert,
If collateral estoppel applies, it is unnecessary to inquire into the correctness of the judgment in the dissolution action because the applicability of the doctrine of collateral estoppel is not affected by the legal correctness or incorrectness of the prior adjudication. Moore v. Swayne-Hunter Farms, Inc.,
Missouri Mexican contends that the issue decided in the dissolution action is not the same as the issue presented in the replevin action. We disagree. In order to make an order of property distribution, the trial court necessarily determines whether the property in question is marital or separate. See Gibson v. Gibson,
Missouri Mexican contends on appeal that the issue of the identity of the titleholder at the time of the divorce was never adjudicated below. Therefore, appellant argues, ownership could not have been adjudicated. Appellant points to the definition of "owner" in § 301.010, RSMo Supp. 1992 as "[a]ny person ... who holds the legal title to a vehicle...." Appellant fails to distinguish, however, between a statutory definition provided for purposes of a statutory scheme, and a statutory definition which is designed to effect a change in the common law. At common law, a title is prima facie evidence of ownership, but is not the sine qua non of ownership. Manchester Insurance and Indemnity Co. v. State Farm Mutual Auto Ins. Co.,
Moreover, appellant's argument misses the mark by focusing on ownership per se. What is actually asserted in a replevin action is a right to possession. MFA Coop. Ass'n of Mansfield v. Murray,
On the Merits
The second element of collateral estoppel is a prior adjudication on the merits. The judgment in the dissolution action was "on the merits" since the proceeding was contested, and each party had a motive to litigate the issue of the right to possession. Ms. Dunafon had a motive to have the car declared to be marital property, so she would have an opportunity to receive the car. Mr. Dunafon had a motive to have the car declared to be the property of Missouri Mexican rather than marital property, so that his corporation could retain the vehicle. Indeed, as already noted, the issues of possession and ownership were specifically raised in the dissolution
The third element of collateral estoppel is a relationship of privity with the party in the prior adjudication. Missouri Mexican, the party against whom collateral estoppel was asserted, was in privity with Mr. Dunafon, a party to the prior adjudication. A privy, in the context of collateral estoppel, is one so related by identity of interest with the party to the judgment that such party represented the same legal right. Moore, 841 S.W.2d at 315. Parties are in privity for collateral estoppel purposes if the interests of the non-party are so closely related to the interests of the party, that the non-party can be fairly considered to have had his day in court. Wal-Mart, 811 S.W.2d at 32. Whether parties are in privity depends mostly on their relationship to the subject matter of the litigation. Id. The court in Moore, examining the relationship between a closely held corporation and its stockholders, looks to the Restatement (Second) of Judgments, which is instructive on this point. Section 59 of the Restatement entitled, "Corporations and Its Officers, Directors, Stockholders, and Members," reads:
Comment e to § 59, Restatement (Second) of Judgments reads:
The court in Moore stated:
841 S.W.2d at 314. Darrell Dunafon was the sole owner and operator of Missouri Mexican. The affairs of Dunafon and Missouri Mexican were so intertwined that, as far as this court can determine, the car was not titled until 1990; and when it was titled and registered, it was placed in the name "Missouri Mexican Products, Inc/Dunafo." Whatever the effect of that title designation may have been, it was in itself representative of the unity of interest between Dunafon and the corporation. The evidence establishes that Dunafon was in privity with Missouri Mexican.
Opportunity to Litigate
For reasons already discussed, Darrell Dunafon had a fair opportunity to litigate the issue of the right to possession of the antique automobile in the dissolution proceeding.
Judgment is affirmed.
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