Guinn v. Lokey
| Decision Date | 28 May 1952 |
| Docket Number | No. A-3437,A-3437 |
| Citation | 249 S.W.2d 185,151 Tex. 260 |
| Parties | GUINN v. LOKEY et al. |
| Court | Texas Supreme Court |
Butler, Binion, Rice & Cook and R. H. Singleton, Houston, for petitioner.
H. A. Crawford and Guy Rall, Houston, for respondents.
This case involves the construction of Article 1436-1, known as the Certificate of Title Act, Vernon's Annotated Criminal Statutes of Texas. L. L. Guinn, Sr., petitioner, filed this suit in the trial court, as plaintiff, against J. A. Lokey et al., defendants, for conversion of an automobile. The trial court, sitting without a jury, held that as a result of the transaction between the parties the title to the automobile claimed by petitioner had passed from him to J. A. Lokey. In affirming the judgment of the trial court, the Court of Civil Appeals held that L. L. Guinn, Sr., having endorsed and delivered the certificate of title and the 1950 license receipt to L. W. Sneed, divested himself of all title to the automobile, and that such act estopped him from claiming title to the automobile against defendants. 243 S.W.2d 246.
Petitioner contends that at the time of bringing this suit for conversion of the automobile he had sufficient interest in same upon which he could predicate a suit for recovery of the automobile. Petitioner's application for writ of error contains two points, which read as follows:
The burden rested upon petitioner to establish in himself sufficient interest in the automobile at the time this suit was filed upon which a suit for conversion could be based. It is undisputed that petitioner received nothing for the sale of his automobile to Sneed.
Most of the essential facts regarding the questions presented here are set out in the trial court's findings of fact and conclusions of law, and the following excerpts are taken therefrom:
On May 15, 1950, L. L. Guinn, Sr., was the owner of and had full title to a 1949 model Oldmobile '98' automobile. On May 16, L. L. Guinn, Sr., agreed to sell said automobile to one L. W. Sneed for $2,500, of which amount the said L. W. Sneed agreed to pay $1,500 in cash to L. L. Guinn, Sr., and agreed to pay the remaining $1,000 by executing an unsecured note payable in the future. On the same day, May 16, 1950, the parties executed the appropriate title papers, with the assistance of an agent of the Sun Acceptance Corporation. After L. L. Guinn, Sr., and L. W. Sneed left the office of the Sun Acceptance Corporation they went to the apartment of L. L. Guinn, Sr., who had other guests for lunch. Shortly before bank closing time L. W. Sneed requested L. L. Guinn, Sr., to go with him to the bank, but L. L. Guinn, Sr., advised L. W. Sneed that he could not leave his guests and that L. W. Sneed could take the car for the purpose of getting the $1,500 in cash, which L. W. Sneed had agreed to pay L. L. Guinn, Sr., for the purchase of said car. L. W. Sneed drove the car off and did not return, and L. L Guinn, Sr., never saw the car in question again until it came into the hands of Mr. and Mrs. J. A. Lokey.
It was found that when L. L. Guinn Sr., executed the assignment of the certificate of title to L. W. Sneed he intended to convey the legal title to the car, and that L. W. Sneed up to the time he got possession of the automobile, intended to pay L. L. Guinn, Sr., $1,500, but after getting possession of the automobile on May 16, 1950, L. W. Sneed changed his mind and decided not to pay L. L. Guinn, Sr., anything; and that L. W. Sneed did not pay, nor has he ever paid, L. L. Guinn, Sr., any of the agreed purchase price of $2,500 for said automobile.
It was further found that in the forenoon of May 17, 1950, L. L. Guinn, Sr., located L. W. Sneed by telephone, called the deal off, and demanded the immediate return of the automobiled to him; but that in the afternoon of May 17, 1950, L. W. Sneed transferred his interest in the said automobile to Wally Mahan, who intended to comply with the articles of the Penal Code in effecting the transfer, and that Wally Mahan had no actual knowledge of the details of the transaction between L. L. Guinn, Sr., and L. W. Sneed, and paid $1,500 to Sneed for the car. It was also found that at the time of such sale L. W. Sneed did not have or give Wally Mahan, dba Mahan Motor Company, a certificate of title to said automobile, issued by the State Highway Department of Texas in his, L. W. Sneed's name. Neither did L. W. Sneed on the occasion of said sale have or give Wally Mahan, dba Mahan Motor Company, a written acknowledgment from the Tax Assessor and Collector of Harris County, Texas, of having received L. W. Sneed's application for issuance of a certificate of title to said automobile in his own name, and that no time did L. W. Sneed apply to said Tax Assessor and Collector for the issuance of a certificate of title to said automobile in his own name.
It was also found that on June 15, 1950, Wally Mahan sold his interest in said automobile to J.A. Lokey for $1,995, plus transfer charges, and that Lokey had no actual knowledge of the previous dealings. But it was found that at the time of such sale to J. A. Lokey, Wally Mahan, dba Mahan Motor Company, gave no documents or papers of any kind pertaining to the title of said automobile to J. A. Lokey, but immediately after such sale Wally Mahan took all title papers to the Tax Assessor and Collector of Harris County, Texas, for the convenience of J. A. Lokey and for the purpose of transferring title to said J. A. Lokey, and at such time said Tax Assessor and Collector issued a receipt for application for corrected title.
It was found that at the time of such sale to J. A. Lokey, Wally Mahan, dba Mahan Motor Company, filled out an application for corrected title to said automobile to be issued in his, Wally Mahan's, dba Mahan Motor Company, own name, and thereafter assigned such application to the name of J. A. Lokey by placing on the back of the application a stamp indicating that a transfer had occurred; and that immediately after such sale to J. A. Lokey, Wally Mahan, dba Mahan Motor Company, took to the Tax Assessor and Collector of Harris County, Texas, the following documents, in order to transfer title to said automobile to J. A. Lokey:
(1) The original certificate of title of said automobile, issued by the State Highway Department of Texas to L. L. Guinn, Sr., and assigned by L. L. Guinn, Sr., to L. W. Sneed, and thereafter assigned by L. W. Sneed to Wally Mahan, dba Mahan Motor Company, and thereafter assigned by Wally Mahan, dba Mahan Motor Company, to J. A. Lokey.
(2) The 1950 License Registration Receipt issued to L. L. Guinn, Sr.
(3) The Application for Corrected Title of L. W. Sneed, assigned by L. W. Sneed to Wally Mahan, dba Mahan Motor Company.
(4) The Application for Corrected Title of Wally Mahan, dba Mahan Motor Company, and assigned by Wally Mahan, dba Mahan Motor Company, to J. A. Lokey.
(5) The Application for Corrected Title of J. A. Lokey.
When petitioner, L. L. Guinn, Sr., learned, through the State Highway Department, that J. A. Lokey was in possession of the automobile, he instituted sequestration proceedings; after which Wally Mahan replevied.
If petitioner retained a sufficient interest or title in the automobile to maintain a suit for conversion thereof, he is entitled to recover, unless his right is defeated on the ground that respondents were bona fide purchasers of the car for value. It is undisputed that petitioner received no consideration whatsoever for his automobile, and when he learned of the fraudulent acts of L. W. Sneed he promptly rescinded the contract and demanded possession of the automobile. If L. L. Guinn, Sr., had power to rescind, and exercised that power, than as between L. W. Sneed and L. L. Guinn, Sr., the legal title was reinvested in L. L. Guinn, Sr.
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