Had title passed to Kennedy at the time of the accident?

On a Friday afternoon, Karl and Linda Kennedy went to John Nolan Ford to buy a new Mustang. The parties signed all necessary documents, including a New Vehicle Buyer’s Order, an Agreement to Provide Insurance, and credit applications. The Kennedys made a down payment, but they could not arrange financing before the dealership closed. John Nolan Ford determined that the Kennedys were creditworthy and allowed them to take the car home for the weekend. That evening, Karl Kennedy permitted his brother-in-law, Cella, to take the car for a drive, along with a passenger named Campbell. Cella wrecked the car, injuring his passenger. Campbell sued, and the question was which insurance company was liable: John Nolan Ford’s insurer (Milwaukee Mutual), Cella’s insurer (Valley Forge), or Kennedy’s insurer (Great American). The trial court ruled that title had never passed to Kennedy and found Milwaukee Mutual liable. The insurance company appealed.