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McDonald had a car and procured an insurance policy from Northland (D). McDonald sold the car to his brother in law Sauber (P). P then called the insurance company, D, and talked with a secretary and claimed that the secretary had said it was all right to transfer the policy on the car from McDonald to P. McDonald then borrowed the car and got in an accident with another automobile. P and McDonald instituted a joint action to recover from D for the damages to the car. McDonald's action was dismissed, and the jury gave the verdict to P for $1750. A motion was made for judgment N.O.V. by D, but the trial court granted a new trial upon errors of law. Both parties appealed.

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