Dob's Tire & Auto Center v. Safeway Insurance Agency

923 S.W.2d 715, 1996 Tex. App. LEXIS 1421, 1996 WL 171580
CourtCourt of Appeals of Texas
DecidedApril 11, 1996
Docket01-95-01098-CV
StatusPublished
Cited by27 cases

This text of 923 S.W.2d 715 (Dob's Tire & Auto Center v. Safeway Insurance Agency) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dob's Tire & Auto Center v. Safeway Insurance Agency, 923 S.W.2d 715, 1996 Tex. App. LEXIS 1421, 1996 WL 171580 (Tex. Ct. App. 1996).

Opinion

OPINION

HUTSON-DUNN, Justice.

Appellant, Dob’s Tire and Auto Center (Dobs), appeals a summary judgment granted on the issue of liability for conversion, in favor of appellees, Safeway Insurance Agency (Safeway) and Melanie and Ronald Riemer. We affirm.

Summary of Facts

In March 1991, Melanie took her husband’s 1987 Suzuki car to Dobs’ store for minor service. When Melanie picked up her car, she issued a check in the amount of $66.47 to Dobs that was later returned to Dobs for insufficient funds. When the Riemers did not make good on the check, Dobs contracted with Mechanics Adjusters, Inc. (Mechanics) to have the car repossessed. On April 11, 1991, Mechanics repossessed the car. On April 15, 1991, Mechanics sent certified mail to both Ronald and Melanie and to Atlantic Richfield Credit Union (ARCO), the vehicle’s lienholder, notifying them the Suzuki had been repossessed, and that they had 30 days to make full payment on amounts due or the car would be sold. ARCO accepted its certified letter, but the Riemers declined to accept their certified letters. On May 28,1991, Dobs sold the car to Gunther Jenner (Jenner).

When Ronald and Melanie discovered their car was missing, they reported the car stolen and filed a theft report with the police. Melanie notified Safeway, their insurance company, of the loss and requested coverage for the loss and for the cost of a rental car. On May 14,1991, Safeway issued a draft payable jointly to Melanie Riemer and ARCO for the theft of the car in the amount of $3,904, and on May 16, 1991, Safeway paid Ronald the rental car expense of $599.43. On June 21, 1991, Safeway learned that Dobs had repossessed and sold the car. When Safeway discovered the car had been sold and not stolen, it brought this subrogation action against Dobs for damages.

Safeway filed suit against Dobs and Mechanics alleging that Dobs and Mechanics, as Dobs’ agent, did not comply with the Property Code when they sold the Riemers’ car to Jenner. 1 Safeway filed a motion for partial summary judgment seeking relief only on the issue of liability against Dobs and/or Dobs’ agent, Mechanics, for conversion of the vehicle. Specifically, Safeway asserted that Dobs and/or Mechanics did not comply with section 70.006(a) or (b) of the Texas Property Code, in that it sold the Riemers’ car before the minimum 61 days lapsed from the time the vehicle was repossessed until it could be sold, and it did not hold a “public sale.” It further alleged Mechanics was Dobs’ agent for the purpose of this suit so that Mechanics and Dobs are jointly and severally liable for conversion. In response to the motion for summary judgment, Dobs argued that it did comply with the notice and sale requirements of the Property Code, and that Mechanics was not its agent.

The trial court granted the partial summary judgment for Safeway on the issue of liability. In the order, the trial court listed three reasons it granted the partial summary judgment:

1. Dobs and Mechanics failed to hold a public sale of Riemers’ car;
2. Dobs and Mechanics failed to comply with the provisions under 70.006 of the Property Code in disposing of Riemers’ car;
3. Mechanics was at all relevant times the agent of Dobs during the repossession and sale of the Riemers’ car.

After the trial court granted Safeway’s partial summary judgment, it rendered a final judgment against all parties involved in which Safeway and Ronald and Melanie Riemer recovered damages against Dobs and Mechanics, and Jenner was non-suited. Dobs asserts four points of error on appeal attacking both the partial summary judg *718 ment and the award of punitive damages in the final judgment.

Analysis

In his first and third points of error, Dobs contends the trial court erred in granting the partial summary judgment because it did comply with the notice and sale provisions of the Texas Property Code.

To obtain a summary judgment, a plaintiff-movant must (1) prevail on each element of the cause of action, and (2) produce evidence that would be sufficient to support an instructed verdict at trial. Wilson v. General Motors Acceptance Corp., 897 S.W.2d 818, 821 (Tex.App. — Houston [1st Dist.] 1994, no writ); Braden v. New Ulm State Bank, 618 S.W.2d 780, 782 (Tex.App. — Houston [1st Dist.] 1981, writ ref d n.r.e.). The defendant-nonmovant then has an opportunity to show that the movant did not prove that there were no material issues on the essential elements of each of the movant’s claims. Wilson, 897 S.W.2d at 821. When the trial court grants a summary judgment on specific grounds, the specified grounds are the only ones on which the summary judgment can be affirmed. State Farm Fire & Cas. Co. v. S.S., 858 S.W.2d 374, 380-81 (Tex.1993). When the trial court order specifies grounds relied on for its ruling, summary judgment will be affirmed if any of the specified grounds are meritorious. River Consulting, Inc. v. Sullivan, 848 S.W.2d 165, 168-69 (Tex.App. — Houston [1st Dist.] 1992, writ denied).

In its first point of error, Dobs contends the trial court erred in granting partial summary judgment because it complied with section 70.006 of the Texas Property Code. Section 70.006 provides:

(a) A holder of a hen under this subchap-ter on a motor vehicle subject to the Certificate of Title Act, as amended (Article 6687-1, Vernon’s Texas Civil Statutes) ... who retains possession of the vehicle ... for 30 days after the day that the charges accrue shall give written notice to the owner and each holder of a hen recorded on the certificate of title. The notice must be sent by certified mail with return receipt requested and must include the amount of the charges and a request for payment, (b) If the charges are not paid before the 31st day after the day that the notice is mailed, the lienholder may sell the vehicle .. at a public sale and apply the proceeds to the charges. The lienholder shall pay excess proceeds to the person entitled to them.

Tex.PROP.Code Ann. § 70.006(a), (b) (Vernon 1995).

Dobs argues section 70.006 provides that a henholder who has a vehicle must give notice to the owners of repossession, and that if the vehicle is not picked up within 31 days of the notice, it will be sold at a public sale. Dobs argues the language of section 70.006 does not require a lienholder to hold the vehicle for 30 days first before he gives notice. Safeway contends that a reading of the plain language requires a lienholder to retain possession of vehicle for 30 days and then send a notice by certified mail notifying the car owners of its intent to sell if the charges are not paid. Safeway contends this requires a lien-holder to keep the vehicle a minimum of 61 days before a lienholder can sell the car.

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Bluebook (online)
923 S.W.2d 715, 1996 Tex. App. LEXIS 1421, 1996 WL 171580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dobs-tire-auto-center-v-safeway-insurance-agency-texapp-1996.