Bryant v. Sears Consumer Financial Corp.

617 So. 2d 1191, 1993 La. App. LEXIS 1037, 1993 WL 67281
CourtLouisiana Court of Appeal
DecidedMarch 10, 1993
Docket91-1192
StatusPublished
Cited by12 cases

This text of 617 So. 2d 1191 (Bryant v. Sears Consumer Financial Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryant v. Sears Consumer Financial Corp., 617 So. 2d 1191, 1993 La. App. LEXIS 1037, 1993 WL 67281 (La. Ct. App. 1993).

Opinion

617 So.2d 1191 (1993)

Joe B. BRYANT, et ux., Plaintiffs-Appellees,
v.
SEARS CONSUMER FINANCIAL CORPORATION, et al., Defendants-Appellants.

No. 91-1192.

Court of Appeal of Louisiana, Third Circuit.

March 10, 1993.
Writ Denied May 14, 1993.

*1192 Raymond C. Jackson II, Lafayette, for plaintiffs-appellees.

Armand J. Brinkhaus, Sunset, for defendants-appellants.

Before DOMENGEAUX, C.J., and STOKER, KNOLL, SAUNDERS and DECUIR, JJ.

SAUNDERS, Judge.

This is an appeal taken by defendants-appellants, Sears Consumer Financial Corporation, (Sears), from a judgment in favor of the plaintiffs-appellees, Joe B. Bryant and Lucille Bryant. We affirm as amended and remand.

FACTS

In April of 1984, the plaintiffs, Joe B. Bryant and Lucille Bryant, purchased a 1984 Pace motor home. In order to finance the sale, Mr. and Mrs. Bryant borrowed $46,242.72 from Sears. Plaintiffs paid $13,080.94 in cash and traded $869.06 in value, and financed the balance. The transaction was secured by a chattel mortgage *1193 executed by the plaintiffs in favor of Sears.

In February of 1986, plaintiffs put the motor home up for sale under a consignment agreement with H. James Myrick of Uncle Em's R-V Sales and Service, Inc. in Scott, Louisiana. The consignment agreement indicated that the amount owed on the motor home was $26,000.00 and also indicated that the minimum acceptable sale price was $29,500.00.

The consignment agreement expired in 30 days. Shortly afterward, the plaintiffs contacted Sears regarding the monthly payments. Plaintiffs understood from their conversations with Sears, that the loan would be frozen as long as the motor home remained at Uncle Em's R-V Sales and Service, Inc. Thereafter, plaintiffs did not make any monthly installments based on their conversations with Sears[1].

On March 25, 1986, Sears forwarded to the plaintiffs a "Notice of Intent to Sell the Repossessed Property". The notice was pursuant to the provisions of the Uniform Commercial Code (U.C.C.) which was not a part of Louisiana law at the time. In any event, plaintiffs claim they never received such notice.

In June, 1986, Uncle Em's released the unit to J.W. Garrett upon his representation that he was authorized by Sears to pick up the unit. The motor home was sold on June 23, 1986, for $21,500.00 to Garrett's Auto Sales. Mr. Garrett phoned the plaintiffs to determine the mileage on the motor home and informed them that he had purchased it from Sears. Plaintiffs made no inquiry into the transaction until August of 1986, when plaintiffs were denied credit at Prudhomme's Mobile Homes.

The credit report showed a repossession order in favor of Sears. Shortly afterward plaintiff sought legal advise and this litigation followed. Plaintiffs filed a petition for damages for conversion on December 17, 1986. In the petition, plaintiffs sought injunctive relief preventing Sears from continuing to list the default notice with the credit reporting agency. Sears signed a consent order voluntarily removing the credit entry, which was filed on January 19, 1987.

ACTIONS OF THE TRIAL COURT

The case was tried on March 6, 1990, and taken under advisement. The trial court issued its reasons for judgment and determined that the plaintiffs were entitled to recover their equity in the motor home which was in the amount of $3,760.00 (the value of the unit $29,760.00 less the balance owed on the mortgage $26,000.00); that the plaintiffs were entitled to $500.00 each for general damages stemming from the conversion; and that the plaintiffs were not entitled to an award for attorney fees. A judgment was signed in conformity on April 30, 1990, awarding plaintiffs $3,760.00 for losses due to conversion and $500.00 each for mental anguish.

The plaintiffs then filed a motion for a new trial which was granted, but limited to the issue of whether the defendant was entitled to a set-off for the balance of the debt owed and whether or not attorney fees should be awarded. After oral argument on September 17, 1990, the trial judge issued a minute entry reversing his earlier ruling on the merits. In reversing, the trial judge awarded the full value of the motor home, $29,760.00, and awarded attorney fees of $10,878.50 under LSA-R.S. 51:1409.

This appeal followed. Sears asserts that the trial court erred in reversing itself to award the full value of the motor home and to award the attorney's fees.

Plaintiffs answered the appeal seeking an increase in the award for mental anguish and attorney fees and objected to the court's failure to award damages for loss of use and damage to credit rating.

DISCUSSION

At the outset, Sears concedes it did not follow the pertinent Louisiana law relative to seizure and sale, and erroneously repossessed the motor home pursuant to the *1194 rules of U.C.C. It further concedes that it is not entitled to deficiency judgment.

I.

Under our jurisprudence, the traditional damages for conversion consists of the return of the property itself, or if the property cannot be returned, the value of the property at the time of the conversion. Boisdore v. International City Bank & Trust Company, 361 So.2d 925 (La.App. 4th Cir.1978), writ denied, 363 So.2d 1384 (La.1978). Where the defendant holds a security interest in the seized property, the value of this seized property corresponds with the equitable interest the plaintiff has acquired in it. Cook v. Spillers, 574 So.2d 464 (La.App. 2 Cir.1991).

We agree with the court below that "equitable interest" is not equivalent to "equity" as commonly used in commerce and lending situations with regard to real estate. The trial court was correct in reversing its earlier ruling awarding damages according to the definition of "equity."[2] However, we disagree with the trial judge's conclusion to award full value of the motor home.

We find the facts and rationale of Bryson v. Bates-Crumley Chevrolet Co., Inc., 171 So. 605 (La.App. 2d Cir.1937), apply to the present case. In Bryson, our sister court, on rehearing, set aside its earlier ruling that the equitable interest in a repossessed automobile was the value less the mortgage. In setting the decision aside and determining that the equitable interest was the amount paid on the purchase price of the property, the court, relying on Hitt v. Herndon, 166 La. 497, 117 So. 568 (La. 1928), stated:

It appears clear to us that, when the court used the conjunction or instead of and, it held plaintiff's equity in the cattle was the amount he had paid and that the damage he had sustained was the price he had paid, and the question of depreciation in value was not taken into consideration by the court. In other words, plaintiff was entitled to the amount of his equity, which was fixed by the amount he had paid defendant. Why should this not be the proper basis upon which to fix his actual pecuniary loss? If defendant had attempted to rescind the sale for the nonpayment of the purchase price, which he had a legal right to do under Rev.Civ.Code, art. 2561, the law required that he place the purchaser in statu quo. In order to do this, he would have had to pay or tender to plaintiff the amount of money plaintiff had paid on the debt. If this be true, can it be said that defendant, by a tortious conversion, can place himself in a better position than he would have been had he proceeded in a lawful manner? We think not. To hold otherwise would be to place a premium on wrongdoing.

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Bluebook (online)
617 So. 2d 1191, 1993 La. App. LEXIS 1037, 1993 WL 67281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryant-v-sears-consumer-financial-corp-lactapp-1993.