Fryer v. Downard
| Decision Date | 16 January 1963 |
| Docket Number | No. 19595,No. 2,19595,2 |
| Citation | 134 Ind.App. 226,187 N.E.2d 105 |
| Parties | Richard C. FRYER, Appellant, v. Irene DOWNARD, Farmer's National Bank, Shelbyville, Indiana, Appellees |
| Court | Indiana Appellate Court |
Samuel J. Mantel, Forrest Semones, Mantel & Doyle, Indianapolis, for appellant.
Edward D. Lewis, Plainfield, Fred Cramer, Shelbyville, for appellees.
Appellee Irene Downard brought this action in replevin for possession of an automobile and for damages for its detention against appellant Richard Fryer and appellee Farmer's National Bank of Shelbyville, Indiana. Appellee Downard was adjudged owner of the car and was permitted to recover Two Hundred ($200.00) Dollars damages from Fryer.
The appellant complains to this court of the overruling of his motion for a new trial, which motion states that the decision of the court is not sustained by sufficient evidence and is contrary to law.
The parties stipulated all of the facts. James T. Downard, deceased spouse of appellee Irene Downard, was the legal owner of a 1958 Plymouth Plaza Club Sedan automobile, and under the terms of his will his wife became the absolute owner of said car.
On September 21, 1958, after the car became the property of appellee Downard, she agreed to sell the car to one Robert F. Gray for the sum of Two Thousand ($2,000.00) Dollars. Gray gave her a check for that amount. In return for this she gave Gray the Certificate of Title to the motor vehicle, which showed James T. Downard as record owner. The form of assignment, which appears on such a Certificate of Title, was not signed. This transaction took place at the Downard home in Danville, Indiana. After the purchase, Mrs. Downard caused said automobile to be driven by her son-in-law to Indianapolis, because Gray had driven another car from Indianapolis to Danville.
Appellee Downard promptly deposited the check in her bank. The check was executed in the company name of College Motor Sales, and the bank, as well as appellees, quickly learned that this company was no longer in business.
On September 22, 1958, Gray went to the place of business of Gibson Company, Inc., doing business as Capitol Motors. He represented himself to be James T. Downard and offered to sell the car in question. By this time the assignment on the Certificate of Title was completed in the name of James T. Downard. The signature was a forgery. Gray stated that he had purchased the vehicle at Phillips Motor Sales in Plainfield, Indiana. When Capitol Motors contacted Phillips Motor Sales, they were advised that James T. Downard had purchased the car, and there were no liens on it. Capitol Motors then gave Gray its check for One Thousand Three Hundred Fifty ($1,350.00) Dollars payable to James T. Downard, Danville, Indiana. The check was endorsed 'James T. Downard', and it was immediately cashed by the bank. The endorsement was likewise a forgery.
After installing a radio and right and left rear view mirrors, Capitol Motors sold the car on September 27, 1958, to appellant, Richard C. Fryer, for One Thousand Two Hundred Seventy-five ($1,275.00) Dollars and a 1955 4-Door Chevrolet. Appellant at no time knew of the transactions involving Gray.
Appellee Farmer's National Bank, Shelbyville, Indiana, believed appellant to be the owner of the car; therefore they loaned appellant Two Thousand Seven Hundred Eighty-six and 76/100 ($2,786.76) Dollars and accepted his promissory note secured by a chattel mortgage on the car. It was the intention of the appellant to give a valid chattel mortgage.
Indiana courts have consistently held that legal title passes to a defrauding buyer. This title is not void; it is voidable, which means that when title gets into the hands of a bona fide purchaser for value then he will prevail over the defrauded seller. Bell v. Cafferty (1863), 21 Ind. 411; Hoham v. Aukerman-Tuesburg Motors (1922), 77 Ind.App. 316, 133 N.E. 507; Dresher v. Roy Wilmeth Co. (1948), 118 Ind.App. 542, 83 N.E.2d 260.
The court said in Dresher v. Roy Wilmeth Co., supra, at p. 548, 82 N.E.2d at p. 262;
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In re Trivett
...bear the risk of North American's wrongdoing. Champa v. Consolidated Finance Corp., 110 N.E.2d 289 (Ind.1953); Fryer v. Downard, 134 Ind.App. 226, 187 N.E.2d 105 (1963). It would be better if the Indiana statutes required identification of a lessee "owner" as a lessee or required indication......
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Mowan v. Anweiler
...only had void title and therefore Mowan received nothing. We find two cases dispositive of this issue. The facts in Fryer v. Downard, (1963) 134 Ind.App. 226, 187 N .E.2d 105 are similar and clearly analogous to the instant case. There, the car owner agreed to sell it to Gray. Gray gave the......
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Marlow v. Conley
...void title, not voidable title, and could not convey good title). We addressed the defrauding buyer situation in Fryer v. Downard, 134 Ind.App. 226, 187 N.E.2d 105 (1963). There, James Downard was the legal owner of a vehicle. Id. at 227, 187 N.E.2d at 106. After his death, Downard's widow ......