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If your father was paid off by the insurance company for the theft claim, he no longer has any ownership interest in the car: the insurance company would own it in the unlikely event it was ever found.
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But, if you have a "deductible" and were not reimbersed 100% in full, you still have a leg to stand on. Have a friend that happened on a stolen (in 1968) 67 Corvette being sold about 10 years ago. He dropped a dime to the police after researching the vin number and his lawyer had him buy the original insured owners position on the car. Then all he had to do was reimburse the insurance company for their expense. It wasn't cheap buying out the original owner, but he did get the car, and a clean title.
By the way, thief went to the grey bar motel for his stupidity.
