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SCHOLFIELD BROS. INC. v. STATE FARM MUT. AUTO. INS. CO.

No. 60,838

242 Kan. 848 (1988)

752 P.2d 661

SCHOLFIELD BROTHERS, INC., Appellee, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant.

Supreme Court of Kansas.

Opinion filed March 25, 1988.

Attorney(s) appearing for the Case

Stephen M. Kerwick, of Foulston, Siefkin, Powers & Eberhardt, of Wichita, argued the cause and was on the brief for appellant.

Ronald D. DeMoss, of Williamson, McGee, Griggs & DeMoss, Chartered, of Wichita, argued the cause, and Broc E. Whitehead, of the same firm, was on the brief for appellee.

The opinion of the court was delivered by

McFARLAND, J.:

This action raises some first impression questions concerning the liability of a third-party tortfeasor's insurance carrier to the party holding a security interest in the vehicle damaged after the insurance carrier has settled with the owner-operator of the vehicle. The district court held in favor of the secured party and the insurance carrier appeals from this judgment.

The facts may be summarized...

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