Bank of Loretto v. Bobo

67 So. 2d 77, 37 Ala. App. 139, 1953 Ala. App. LEXIS 356
CourtAlabama Court of Appeals
DecidedMarch 17, 1953
Docket8 Div. 31
StatusPublished
Cited by16 cases

This text of 67 So. 2d 77 (Bank of Loretto v. Bobo) is published on Counsel Stack Legal Research, covering Alabama Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Loretto v. Bobo, 67 So. 2d 77, 37 Ala. App. 139, 1953 Ala. App. LEXIS 356 (Ala. Ct. App. 1953).

Opinion

*144 HARWOOD, Judge.

Trial below was had before the court without a jury.

The plaintiff is a Tennessee banking corporation and the defendant is a sole trader doing business in Florence, Alabama, under the name of Bobo Motor Company.

The complaint as amended was in one count and claimed the sum of $770 due from defendant by' a check drawn by him on a bank in Florence, Alabama, in favor of the plaintiff on or about January 3, 1950, which was presented and payment refused because of defendant stopping payment on same.

To the complaint the defendant filed seven pleas.

Pleas 1 and 2 were of the general issue.

Plea 3 was no consideration.

Plea 4 was non indebitatus.

Plea 5 sets up no consideration, and then showed that:

“Defendant did issue a check in the amount of Seven Hundred Seventy And No/100 Dollars .($770.00), dated the 3rd day of January, 1950, payable to the Plaintiff, but at the time Defendant did not owe Plaintiff any money whatsoever and because of this fact stopped payment on the check before it was presented to the First National Bank for payment. Defendant alleges that the issuance of the check was merely a voluntary act of the Defendant without any consideration therefor and that when payment was stopped, at his request, the act in effect was destroyed; Defendant also alleges that the Plaintiff has no change of position in reliance upon the act of the Defendant; wherefore your Defendant says he is not indebted in any amount to the Plaintiff.”

Plea 6 went out on demurrer.

Plea 7, to which the demurrer was overruled, sets up that defendant purchased an automobile in good faith in Lauderdale County, Alabama, with no knowledge that plaintiff had a mortgage on said automobile, and after said automobile had been in Lauderdale County, Alabama, for more than six months; that the first knowledge ■defendant had of said mortgage was when plaintiff’s attorney, Howard Freeman, came to Florence, Alabama, and advised him of same; that said attorney fraudulently advised defendant he was liable for the unpaid balance due on said mortgage, when in fact defendant was not so liable, and that such representation by plaintiff’s attorney was made with intent to deceive defendant and induce him to act thereon; that defendant was and is a layman unlearned in law and did not understand the effect of recording statutes, whereas plaintiff’s attorney was skilled in law, which fact he made known to defendant; that defendant relied on the representations of plaintiff’s attorney and issued the check sued on, which check is null and void because procured by said false representations.

The plaintiff demurred to pleas 5, 6 and 7, which demurrers were overruled as to pleas 5 and 7, and sustained as to plea 6.

The plaintiff then filed a replication of the general issue to the pleas, and a special replication, also to all of the pleas.

*145 This special replication sets up that the mortgage on the automobile was made by Ed 'Craig, and secured a note made by mortgagor Craig; some $770 being due on said note at the time defendant executed the check sued on; that on January 4, 1950 the defendant came to Loretto, Tennessee, and informed the officers of plaintiff that he had come to pick up the Ed Craig note and mortgage held by the plaintiff; that on said day the defendant executed the check sued on in consideration of the assignment of the mortgage and note to him; and plaintiff did on said day assign and deliver the note and mortgage to defendant; that defendant was at the time engaged in buying and selling automobiles in Florence, Alabama; that prior to January 4, 1950 the defendant had purchased the automobile in question from Ed Craig, not knowing when the vehicle had been brought into Alabama; that upon plaintiff’s attorney informing defendant that he was going to repossess the automobile under its mortgage the defendant advised the attorney he had sold the automobile to a third party and if no attempt was made to repossess the automobile the defendant would pay the Craig mortgage; that plaintiff’s lawyer practices in Tennessee and has never engaged in law practice in Alabama; that plaintiff’s attorney made no false or fraudulent representations in any manner; that defendant had ample opportunity to advise with counsel of his choice; that defendant after talking with plaintiff’s attorney called plaintiff by long distance telephone and stated that if plaintiff would hold its claim in abeyance he would come to Loretto and pay the Craig indebtedness; plaintiff’s agent did hold the claim in abeyance until defendant came to its place of business and executed the check in question in exchange for the transfer of the Craig note and mortgage; that on the date of the said transfer the note and mortgage were valid obligations and liens under the law of Tennessee; and further, that subsequent to the date of said transfer various creditors of Ed Craig have collected from him obligations owed by him to them.

Issue was joined on the pleadings above mentioned.

The evidence presented below tends' to show that on March 15, 1949 Ed Craig executed a note for $950 payable to plaintiff in 15 equal installments of $60 each, beginning April 15, 1949, and secured said note by a chattel mortgage on a Fraser automobile.

This mortgage was recorded in Lawrence County, Tennessee, on March 24, 1949.

On April 16, 1949 Craig made four payments for April, May, June, and July 1949. No other payments were made on the mortgage.

On April 9, 1949 the defendant (appellee) bought this automobile from Craig in Lauderdale County, Alabama. The defendant did not check the records of Lauderdale County, Alabama, before making the purchase, but did call two or more other automobile dealers in reference to Craig. The car bore Tennessee tags at the time of the sale.

Around May 1, 1949 the defendant sold this automobile to Elmer Johnson.

No further payment was made by Craig to plaintiff on his note though the bank sent him notices. In September or October, 1949, the plaintiff learned that the car was no longer in Lawrence County, Tennessee. It then turned the note over to an attorney to collect. This attorney produced no results, and about December 25, 1949 the plaintiff turned the matter over to another attorney, Mr. Howard Freeman of Lawrenceburg, Tennessee.

About the last day of December Mr. Freeman called at defendant’s place of business in Florence, bringing the chattel mortgage with him.

Mr. Freeman testified that defendant admitted he had bought the automobile from Craig, and “knew all about the matter.” That he had kept the car about a month and sold it to Elmer Johnson.

Freeman further testified that he told the defendant that the plaintiff had a mortgage on the car and that he, as a lawyer of Lawrenceburg, Tennessee, was representing the bank.

*146 The defendant permitted Freeman to examine his records.

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Bluebook (online)
67 So. 2d 77, 37 Ala. App. 139, 1953 Ala. App. LEXIS 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-loretto-v-bobo-alactapp-1953.