Stemmons, Inc. v. Universal C. I. T. Credit Corp.
| Decision Date | 10 July 1956 |
| Docket Number | No. 36861,36861 |
| Parties | STEMMONS, Inc., a Corporation, Plaintiff in Error, v. UNIVERSAL C. I. T. CREDIT CORPORATION, a Corporation, Defendant in Error. |
| Court | Oklahoma Supreme Court |
Syllabus by the Court
1. The legal presumption is that the Legislature has expressed its intent in the statute, and that it intended what it expressed and nothing more.
2. Authorized automobile dealer's sale of new automobile to licensed used car dealer for resale, buyer having no knowledge of seller's financing arrangements or finance company's chattel mortgage on vehicle, constituted a sale 'in the ordinary course of trade' within the meaning of the statute, 46 O.S.1951 § 93, and finance company was not entitled to possession of property by replevin.
Appeal from the District Court of Oklahoma County; Albert C. Hunt, Judge.
Suit in replevin to recover possession of automobile, wherein purchaser for value in chain of title was granted leave to intervene and defend the action. Judgment for plaintiff and defendant appeals. Reversed.
Valjean Biddison, Floyd L. Rheam, Tulsa, for plaintiff in error.
Robert O. Bailey, McClelland, Bailey & McClelland, Oklahoma City, for defendant in error.
The question presented for determination by this appeal evolved from the factual matters hereafter related, and as to which there is no dispute.
On December 15, 1953, F. A. McBee, doing business as McBee Motor Company, was an authorized Dodge-Plymouth automobile dealer in Greenfield, Missouri. Upon that date, and at all times hereafter referred to, Lester Hollis was a licensed used car dealer in Springfield, Missouri. At this same time Stemmons, Inc., was a licensed used car dealer in Tulsa, Oklahoma, and Cliff Wilson was a licensed used car dealer in Midwest City, Oklahoma. The plaintiff had loaned McBee $1,845.25, secured by a recorded 'floor plan' chattel mortgage on a new Plymouth automobile which McBee was offering for sale.
On December 22, 1953 McBee sold this automobile to Hollis, receiving $1,500 cash and a 1949 Plymouth automobile, giving him a bill of sale and a signed, blank application for a Missouri certificate of title which showed the car had been purchased for resale only. Hollis applied for and received a certificate of title under his dealer's permit. Thereafter Hollis sold this vehicle to Stemmons, Incorporated, which concern negotiated a sale to Cliff Wilson, who had possession when plaintiff brought this action.
Plaintiff sued Wilson to replevin this automobile, alleging the loan of money secured by a chattel mortgage thereon, the mortgagor's default in the terms of the mortgage, the right of ownership and a special lien, and the right to immediate possession. Writ of replevin issued and Wilson surrendered possession of the automobile.
Stemmons, Incorporated, then moved for leave to intervene and to be substituted as party defendant, claiming ownership and right of possession of this car. Having been granted leave to intervene defendant's petition alleged purchase of the car from Hollis in the ordinary course of trade, and sale of same to Wilson who, upon replevin thereof, had called upon defendant for reimbursement under the warranty of title; that defendant had purchased this car in the ordinary course of trade from an authorized car dealer (Hollis Motor Co.) and for this reason defendant had taken title free of lien held by plaintiff. Defendant asked for damages for wrongful replevin, return of the vehicle or value thereof. Plaintiff replied to defendant's answer and plea in intervention by general denial.
At the trial the parties stipulated $2,400 was the fair market value of the car. Certain matters were stipulated to at the trial and the evidence introduced was in the form of depositions of Lester Hollis, and his son who had assisted in the sale to defendant, together with exhibits disclosing the nature of the title transaction. By agreement the car was sold at public auction and the proceeds of the sale deposited with the court clerk, pending determination of this appeal.
After hearing the matter the trial court rendered judgment for plaintiff, upon the theory the ultimate purchaser was not protected from the lien granted the mortgagee by statute because the sale, under which the mortgagor surrendered possession of the mortgaged vehicle, was not a sale in the ordinary course of business.
At this point it should be noted that no questions relating to notice, consideration, or good faith are of concern herein. The trial court recognized this as a case of first impression in this jurisdiction, but stated that in his opinion it was such a case as the statute was designed to prevent. The appeal from the trial court's judgment is based squarely upon the proposition that the court erred in holding that the sale (by which the mortgagor surrendered possession of the car to Hollis) was not a sale in the ordinary course of trade.
In 1947 the Legislature enacted certain new chattel mortgage statutes, dealing with the mortgage or pledge of stocks of goods, which statutes now appear as 46 O.S.1951 §§ 91-94, inclusive. Section 91 provides for the giving of a mortgage upon all, or a portion of a stock of goods. Sections 92 and 93 then provide:
In view of the trial court's holding we are required to determine whether, in view of the language used, the Legislature intended to protect the mortgagee's lien upon the property, possession of which is retained by the mortgagor who offers same for sale, in all instances except where the mortgagor sells at retail.
The trial court's attention was directed to decisions from other jurisdictions where this question has been considered. And, in their appeal briefs, the parties cite and rely upon what appears to be the latest decided cases upholding each party's theory. Although not controlling, there are instances when the reasoning upon which a decision from another court is based may be of great assistance and particularly persuasive. To aid in consideration of this matter we deem it advisable at this point to consider the cases principally relied upon by the parties as sustaining their respective positions.
Plaintiff relies upon two decisions from the Ohio Court of Appeals, to-wit: Colonial Finance Co. v. McCrate, 60 Ohio App. 68, 19 N.E.2d 527, 531, and Associates Discount Corp. v. Main Street Motors, Inc., Ohio App., 113 N.E.2d 734. In the McCrate case the Ohio court pointed out that statutes of that state recognized a difference between a sale and purchase between two automobile dealers, and a sale by a dealer to a member of the buying public designated as "a general purchaser or user." Such distinction was that in the first instance no statutory new car bill of sale was required, whereas in the latter case there was the requirement that a statutory new car bill of sale be issued. Based upon this statutory distinction, the Ohio court construed the phrase 'buying public' to mean members of the general public who were purchasers and users of cars; as distinguished...
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