8117 – A Legal Whitewash

Here’s a case where white-out played center stage.  It all got started when Ken decided to sell his motorcycle.  He thought he had it sold to Joe, and was so sure Joe was going to buy it, he wrote Joe’s name and address onto the title, then the sale fell through.  Mark bought the motorcycle, so Ken whited-out Joe’s name and address and wrote in Mark’s.  Unfortunately, the certificate of title says in capital letters, “IF ANY ALTERATIONS OR ERASURES ARE MADE, THIS TITLE IS VOID.”  Ken probably should have whited-out those words, too, but he didn’t.  Mark was then involved in a very serious accident with the motorcycle and his insurance company claimed that title was void because of the white-out.  Therefore, Mark didn’t legally own the cycle, and they didn’t have to pay the claim.  The Judge that first heard the case agreed, but the Appeals Court reversed, ruling that there’s nothing in the law that authorized the DMV to declare that all alterations or erasures automatically void a title.  So the bottom line is–when you use white-out, while you may not win outwhite, you may outwit the opposition–all white alweady.

THIS IS NEIL CHAYET LOOKING AT THE LAW™

Auto Club Insurance Assoc., vs. Mark T. Sarate, Court of Appeals of Michigan, 6/25/99, Curiam, 1999 W.L. 450422 (Mich.)