INSURANCE - CONDITIONAL VENDOR\u27S INSURANCE - EFFECT OF REPAIR BY OR RESTORATION TO THE VENDEE OR SUB-VENDEE

Plaintiff, a Minnesota corporation, purchased the vendor\u27s interest in an automobile sold under a conditional sales contract. The defendant insured the plaintiff against direct loss or damage to the automobile by collision and/or upset. The vendee, without plaintiff\u27s knowledge or consent, sold the car to a sub-vendee who drove it to Texas, became involved in an accident, and sold the wreckage to a resident of Texas who purchased in good faith. The car was rebuilt and resold. Plaintiff sued for the loss caused by the collision. Held, plaintiff may recover even though the car was repaired by others prior to payment of the loss by the insurer. Midland Loan Finance Co. v. Security Ins. Co., (Minn. 1940) 293 N. W. 313