Pattans Ventures, Inc. v. Williams

• Decision Date: 01 December 2006
• Docket Number: 2040648.
• Citation: 959 So.2d 115
• Parties: PATTANS VENTURES, INC., d/b/a Pattan Title & Pawn v. Darryl WILLIAMS.
• Court: Alabama Court of Civil Appeals

959 So.2d 115

PATTANS VENTURES, INC., d/b/a Pattan Title & Pawn v. Darryl WILLIAMS.

2040648.

Court of Civil Appeals of Alabama.

December 1, 2006.

Jeffrey L. Ingram of Galese & Ingram, P.C., Birmingham, for appellant.

Bill Thomason and Clay J. Thomason of Thomason, Maples & Allsup, LLC, Bessemer, for appellee.

On Application for Rehearing

CRAWLEY, Presiding Judge.

This court's opinion issued on June 2, 2006, is withdrawn, and the following is substituted therefor.

Darryl Williams ("the pledgor") sued Pattans Ventures, Inc., doing business as Pattan Title & Pawn ("the pawnshop"), Nathaniel Ellis, Alabama Auto Adjusters, and several fictitiously named parties, alleging that his vehicle was wrongfully repossessed and sold and claiming as grounds for relief breach of contract, conversion, and unjust enrichment. The trial court entered a judgment; however, based upon a postjudgment motion filed by the pawnshop, the trial court amended its judgment. The trial court's amended judgment determined that the pledgor's claims of conversion of his vehicle and breach of contract against the pawnshop were meritorious, entered a judgment against the pawnshop on the conversion and breach-of-contract claims, and assessed damages in the amount of $39,000.¹ The trial court ruled in favor of Nathaniel Ellis on the pledgor's claims against him. The pledgor's claims against Alabama Auto Adjusters were dismissed without prejudice. The pledgor never substituted additional defendants for the fictitiously named parties in the complaint. Thus, the trial court's judgment is a final judgment. The pawnshop has timely appealed.

I. Factual Background

The trial court's judgment determined that the pledgor had purchased the vehicle in question, a 2001 BMW sport-utility vehicle, in April 2001, for the amount of $47,981.98. The Alabama Department of Revenue ("the department") issued the pledgor the certificate of title to the vehicle in May 2001.

On December 13, 2001, the pledgor pawned the title to the vehicle to the pawnshop for the amount of $700. At that time, the pledgor also executed a pawn ticket for that amount; however, as is customary for this type of transaction, the pledgor kept physical possession of the vehicle. In order to redeem the title to the vehicle, the pledgor was required to pay $875 within 30 days of the date of the issuance of the pawn ticket. The pawn ticket, signed by a representative of the pawnshop and by the pledgor, provides the following relevant contract terms:

"This pawn is for one month. The pawnshop charge is deemed earned, due and owing as of the date of the pawn transaction and a like sum shall be deemed earned due and owing on the same day of the succeeding month. `Any personal property pledged to a pawnbroker within this state is subject to sale or disposal when there has been no payment made on the account for a period of 30 days post maturity date of the original contract, and no further notice is necessary.' Pledgor shall present this ticket when redeeming the pledged goods. Pawnbroker agrees to return the pledged goods to the pledgor upon payment of the amount loaned plus pawnshop charge and any other lawful charges.

"Any person identified as pledgor or as authorized representative of the pledgor and presenting a pawn ticket to the pawnbroker shall be entitled to redeem or repurchase goods described on the ticket. In the event pledged goods are lost or damaged while in the possession of the pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with like kinds of merchandise and proof of replacement shall be a defense to any prosecution. For the purpose of the provision, `lost' includes pledged goods that have been destroyed or have disappeared due to willful neglect that results in the pledged goods being unavailable for return to the pledgor."

(Emphasis added.)

Also on December 13, 2001, the pledgor executed a document styled "Bill of Sale of Motor Vehicle Pawned," which purported to evidence the sale of the vehicle to the pawnshop, with the sale to become effective if the pledgor failed to pay the $875 within 30 days.

Additionally, the pledgor executed a power of attorney, appointing Gabe Ellis, a representative of the pawnshop, as his attorney in fact for the purpose of applying for a new certificate of title and, among other things, placing a lien on the vehicle. The signature on the power-of-attorney document was not that of Gabe Ellis, however, but of James Bearden, an agent of the pawnshop. Other documents obtained from the department indicate that another power-of-attorney document was completed, apparently by the pawnshop, wherein Bearden was purportedly appointed to be the pledgor's attorney in fact. However, the trial court determined that the pledgor's purported signature on that document was an obvious forgery.

A January 25, 2002, application for a certificate of title to the vehicle filed with the department, which identified the pawnshop as a lienholder on the vehicle, was signed by Bearden, pursuant to the forged power-of-attorney document. In February 2002, the department issued a new certificate of title to the vehicle, indicating that the pawnshop was the first lienholder. That lien was released by Nathaniel Ellis, a representative of the pawnshop, on November 15, 2002, when the pawnshop took possession of the vehicle. The title document indicates that the vehicle was sold by the pawnshop on November 15, 2002, and that the title was subsequently reassigned in turn to three separate automobile dealers.

Nathaniel Ellis testified that the keys to the vehicle are with the vehicle and that he did not know the whereabouts of the vehicle. Nathaniel Ellis also testified that, at the time the pledgor pawned the title to the vehicle, he explained to the pledgor that the pawn ticket had to be redeemed within 30 days and that, if it was not redeemed within 30 days, the pledgor would have an additional 30 days to redeem it, but that, on the 61st day, title would pass to the pawnshop. Nathaniel Ellis claimed that the pledgor did not make or attempt to make any payments to the pawnshop.

The pledgor testified that he attempted to pay his pawn ticket 4 days before the 30-day pawn-transaction period expired. The pledgor stated that, despite the fact that he had enough cash to redeem his certificate of title, Nathaniel Ellis told him that he could not locate the certificate of title. According to the pledgor, Nathaniel Ellis added that, if the pledgor would pay the interest on the pawn ticket, the pawnshop would extend the time to pay the principal amount by another 30 days. The pledgor testified that he declined to pay only the interest and indicated that he was ready, willing, and able to pay the full amount of the pawn ticket upon Nathaniel Ellis's returning the certificate of title to him.

Two weeks later, the pledgor testified, he again attempted to tender full payment of the pawn ticket. The pledgor stated that Nathaniel Ellis told him again that he could not locate the certificate of title but that the pledgor could pay the interest on the pawn ticket to extend the transaction for 30 days. The pledgor stated that he again refused the alternative of paying only the interest and demanded return of the certificate of title in return for his full payment. The pledgor testified that he periodically spoke with Nathaniel Ellis by telephone between January 13, 2002, and up to February 13, 2002, but that the situation remained the same—Nathaniel Ellis claimed that he could not locate the certificate of title but offered to extend the transaction for 30 days if the pledgor would pay the interest due. The pledgor testified that he declined the offer each time. At the time the pawnshop took possession of the vehicle, about eight months after the pawn ticket had matured, the vehicle was valued at $39,000.

The trial court determined that the pawnshop had violated the Alabama Pawnshop Act, § 5-19A-1 et seq., Ala.Code 1975 ("the Act"), by selling the vehicle without waiting 30 days from the date it took physical possession of the vehicle. Specifically, the trial court stated:

"In construing the statute in order to determine the intent of the Legislature in the application of the provisions with regard to the pawn of automobile titles, the Court has considered Ala.Code § 5-19A-10(b)(1975), which addresses pledgor rights to redeem with regard to pledged tangible property, in para materia with Ala.Code § 5-19A-5(c) (1975), which addresses a pawnshop owners obligation to hold all purchased goods, including automobiles, for 21 days prior to disposing of them by sale or otherwise, as indicative of a legislative intent that a pledgor, having surrendered an item of personal property to a pawnbroker, should have a period of time after he has lost possession to redeem the property, thereby regaining possession of the property and satisfying his obligation to the pawnbroker.

"[The pawnshop], in disposing of [the pledgor's] vehicle by sale on the same date upon which [the pawnshop] came into possession of the tangible property, which was the subject of the pawn transaction is violative of the letter, if not the spirit of Ala.Code § 5-19A-10(b) (1975). The Court therefore finds that the resale of [the pledgor's] vehicle prior to the expiration of 30 days from the date that the said vehicle came into the possession of [the pawnshop] following the maturity date of the pawn transaction was in violation of the Alabama Pawnshop Act, was an interference with [the pledgor's] right to redeem and therefore supports [the pledgor's] claim for conversion against [the pawnshop] and breach of the pawn contract between [the pledgor] and [the pawnshop]."

The trial court concluded by stating that it was "reasonably satisfied of the truthfulness of [the pledgor's] claim for conversion of his motor vehicle and breach of contract," and it entered a "judgment for [the...