Security Nat. Bank and Trust Co. of Norman v. Richardson

• Decision Date: 31 January 1984
• Docket Number: No. 59313,No. 3,59313,3
• Parties: 1984 OK CIV APP 8 SECURITY NATIONAL BANK AND TRUST COMPANY OF NORMAN, a corporation, Plaintiff/Appellant, v. Bobby RICHARDSON, Phyllis Richardson, First National Bank and Trust Company of Norman and Wheels of Norman, Ltd., Defendants/Appellees
• Court: United States State Court of Criminal Appeals of Oklahoma. Court of Civil Appeals of Oklahoma

Page 293

686 P.2d 293

1984 OK CIV APP 8

SECURITY NATIONAL BANK AND TRUST COMPANY OF NORMAN, a corporation, Plaintiff/Appellant, v. Bobby RICHARDSON, Phyllis Richardson, First National Bank and Trust Company of Norman and Wheels of Norman, Ltd., Defendants/Appellees.

No. 59313.

Court of Appeals of Oklahoma,

Division No. 3.

Jan. 31, 1984.

Released by Order of Court of Appeals

March 5, 1984.

Appeal from the District Court, Cleveland County; Preston A. Trimble, Trial Judge.

AFFIRMED.

Rebecca J. Patten, Norman, for appellant.

John M. Luttrell, Norman, for appellees Bobby Richardson, Phyllis Richardson, and First National Bank & Trust Company of Norman.

James F. Pence, Norman, for appellee Wheels of Norman, Ltd.

CHARLES M. WILSON, Judge:

The question in this appeal is whether the holder of a security interest perfected under the certificate of title statute may replevin the automobile from a subsequent purchaser who acquired a clear title to the car by reassignment from a dealer in used cars. The dealer had acquired a clear certificate of title from the security holder's obligor. The title was issued after a forged release of the security holder's lien had been filed.

To enforce its security agreement, Security National Bank and Trust Company of Norman filed suit for possession of the automobile. The Richardsons, purchasers of the automobile, and their security interest holder, First National Bank and Trust Company of Norman, were named defendants. On the defendants' motion, Wheels of Norman, Ltd., the seller of the automobile to the Richardsons, was added as an additional party defendant by the court.

At trial the parties first presented the court written stipulations which provided:

STIPULATED FACTS OF THE PARTIES

                         Tracing events of 1980 Mazda RX7--
                       Vehicle Identification No. SA22C579255
                  1.  Vehicle purchased by O'Neils           10/23/80
                  2.  Lien filed with Oklahoma Tax           10/27/80
                      Commission in favor of American
                      Exchange Bank
                  3.  Mrs. O'Neil is employed by the
                      Norman Tag Agency
                  4.  O'Neil's obtained duplicate title       1/06/81
                      from Oklahoma Tax Commission
                  5.  O'Neil's executed Note and Security     1/08/81
                      Agreement to Security National
                      Bank substituting this vehicle
                      as collateral for 1979 Mazda
                      RX7 Serial No. SA22C504446
                      which is released on this date by
                      Security National Bank
                  6.  Assignment of Lien by Reynolds          1/12/81
                      Ford to Securtiy National Bank
                      filed with Oklahoma Tax Commission
                  7.  Reynolds Ford at no time had an
                      interest in this vehicle
                  8.  Release of Lien filed by Assignee,      3/11/81
                      Security National Bank filed
                      with Oklahoma Tax Commission
                  9.  Security National claims this release
                      is fraudulent
                 10.  O'Neils sell vehicle to Wheels of       4/03/81
                      Norman, Inc
                 11.  American Exchange Lien is released      4/03/81
                      by reason of payment by
                      Wheels of Norman
                 12.  Wheels sells to Richardsons             4/06/81
                 13.  Richardsons execute Note and security   4/16/81
                      interest to First National
                      Bank and First National Bank
                      files lien with Oklahoma Tax
                      Commission
                

Security Bank then presented the testimony of their employee, Mr. Bridgwater. He stated the indebtedness covered by their security agreement was in default and that the document which purported to release its lien did not contain the signature of any employee of the Security Bank. He added that the Richardsons had refused to deliver the car to the Bank after demand. Security Bank rested at the conclusion of Mr. Bridgwater's testimony.

The defendants demurred. The trial court sustained the demurrers and entered judgment for the defendants and quieted the title to the 1980 Mazda in the Richardsons subject to the lien of the First National Bank. Later, the court entered an order overruling Security Bank's motion for new trial and granting attorneys' fees of $1,000 to Richardsons and the First National Bank and of $1,350 to Wheels of Norman.

Security Bank appeals, objecting to the trial court's sustention of the defendant's demurrers and award of the attorneys' fees.

The 1979 amendment to the Motor Vehicle Title Act, 47 O.S.Supp.1979 § 23.2b, provided that beginning July 1, 1979, a security interest in a vehicle,...