Drake Ins. Co. Ltd. v. King

600 S.W.2d 836, 1979 Tex. App. LEXIS 4612
CourtCourt of Appeals of Texas
DecidedOctober 18, 1979
DocketNo. 5374
StatusPublished
Cited by1 cases

This text of 600 S.W.2d 836 (Drake Ins. Co. Ltd. v. King) 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
Drake Ins. Co. Ltd. v. King, 600 S.W.2d 836, 1979 Tex. App. LEXIS 4612 (Tex. Ct. App. 1979).

Opinion

RALEIGH BROWN, Justice.

This is a suit to determine the ownership of a 1973 GMC truck-tractor. The State of Texas filed an “Inventory of Property Seized” under Tex.Rev.Civ.Stat.Ann. art. 6687 — 1, and the truck was delivered into the possession of the State pending the determination of the rightful owner. Drake Insurance Company, Ltd., Jonah Finley and Tommy P. King intervened and claimed ownership or an interest in the vehicle. After a nonjury trial, judgment was entered awarding $2,000 to Drake Insurance and the truck to King. Drake Insurance Company, Ltd. appeals. King conditionally appeals in the event the cause is reversed and rendered for Drake. We reverse and render in part and affirm in part.

In March, 1977, Richard League was in possession of the truck. The truck broke down and Finley made some patchwork repairs on it. League paid for the work and left with the truck. The truck immediately broke down and was towed back to Finley’s garage where it was stored at League’s request until July 6, 1977. On that day, League sold the truck to Finley for $2,000 and delivered to him an Indiana certificate of title which purported to cover the truck. Finley testified that such certificate was taken to the Eastland County Tax Collector who stated that the Indiana certificate would support the issuance of a new Texas certificate to Finley.

Finley then made repairs to the truck which amounted to a fair market value of $10,560.63. On August 24,1977, Finley sold the truck to King for a total purchase price of $14,254.37. In October, 1977, the State seized the truck as an alleged stolen vehicle.

During the trial of the instant cause, Drake Insurance produced a copy of a certificate of title showing that a certificate of title to such truck was issued to Drake by authorities of the Commonwealth of Virginia on April 10, 1978. Drake originally pleaded that its claim of title came from League, although its subsequent pleading claimed title from Rento, Inc.

The trial court made the following findings of fact and conclusions of law:

FINDINGS OF FACT
1. On or about March 15, 1977 and until July 6, 1977, Richard League was the owner and was in possession of the vehicle in question.
2. Richard League caused such vehicle to be stored with defendant Jonah Finley from March 15, 1977 to July 6, 1977.
3. The reasonable storage charges on such vehicle in Eastland County, Texas from March 15, 1977 to July 6, 1977 was $565.00.
4. On July 6, 1977 defendant Jonah Finley in good faith and for valuable consideration ($2,000.00) purchased such vehicle from Richard League in the usual course of business.
5. The fair market value in Eastland County, Texas on July 6, 1977 was $2,000.00.
6. Defendant Jonah Finley received from Richard League a certificate of title and a transfer thereof purporting to cover the vehicle in question.
7. Before paying Richard League for such vehicle, defendant Jonah Finley, through an employee, ascertained from the Eastland County tax collector that such certificate of title and the transfer thereof would entitle such defendant to be issued a Texas certificate of title to such vehicle, but the State of Texas thereafter refused to issue a Texas certificate of title to such vehicle based on such transfer.
8. After July 6, 1977 and prior to August 24, 1977, defendant Jonah Finley in good faith made repairs to such vehicle of a reasonable market value in Eastland County, Texas of $10,560.63.
9. After such repairs and on and prior to August 24, 1977 such vehicle had a fair market value in Eastland County, Texas of $12,000.00
[838]*83810. On August 24, 1977, defendant Jonah Finley sold such vehiclé to intervenor Tommy P. King for $12,000.00, of which $8,500.00 has been paid in cash and $3,500.00 was represented by the fair market value in Eastland County, Texas of another vehicle traded in by Tommy P. King.
11. At the time of the sale to Tommy P. King, defendant Finley, reasonably and in good faith and using reasonable care to avoid error, believed that defendant had good title to the vehicle in question and the right to sell same to Tommy P. King, and such sale was made reasonably and in good faith.
12. On or about October 10, 1977 the State of Texas seized the vehicle in question.
13. Since October 10, 1977 to date of trial such vehicle has been stored with defendant Jonah Finley.
14. The fair and reasonable storage charge on such vehicle from October 10, 1977 to date of trial was $5.00 per day.
15. Defendant Jonah Finley secured for use of intervenor Tommy P. King another substitute vehicle which has been used by or available for use by such intervenor from October 17, 1977 to date of trial.
16. Intervenor Tommy P. King has sustained no loss to date of trial by reason of the seizure of the vehicle in question and his inability to use such vehicle during such time.
17. The fair and reasonable rental value of the vehicle in question and of the substitute vehicle in Eastland County, Texas from August 24, 1977 to January 16, 1978 was $11,350.00, and such rental value of the substitute vehicle after January 16, 1978 was $70.00 per day.
18. Wrecker service for the vehicle in question was provided by defendant Jonah Finley at the request of Richard League prior to July 7,1977 of a fair and reasonable value in Eastland County, Texas of $353.00.
19. The vehicle in question, prior to July 7, 1977 and to the good faith repairs effected by defendant Jonah Finley, was not operable as a vehicle, such good faith repairs being necessary to make such vehicle operable.
20. The fair market value of the vehicle in question in Eastland County, Texas has been enhanced $10,000.00 by the good faith repairs effected by defendant Jonah Finley.
21. On April 10, 1978 a title certificate to the vehicle in question was issued by the Division of Motor Vehicles of the Commonwealth of Virginia to intervenor the Drake Insurance Company, Ltd.; whatever interest such intervenor had in such vehicle was acquired from Richard League.
22. At the time of the sale to defendant Finley on July 6, 1977, title to the vehicle in question was in Richard League and was not in intervenor The Drake Insurance Company, Ltd.
23. No voluntary delivery of the vehicle in question was made by defendant Finley after his repairs thereto to Richard League or to intervenor The Drake Insurance Company, Ltd.
CONCLUSIONS OF LAW
1. Title to possession of the vehicle in question being in Richard League on July 6, 1977, he had the right to sell same to defendant Jonah Finley.
2. Intervenor The Drake Insurance Company, Ltd., having acquired whatever rights it did in such vehicle from Richard League, is entitled to no more rights therein than Richard League was.
3.

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Related

Drake Insurance Co. v. Tommy Paul King
606 S.W.2d 812 (Texas Supreme Court, 1980)

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Bluebook (online)
600 S.W.2d 836, 1979 Tex. App. LEXIS 4612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drake-ins-co-ltd-v-king-texapp-1979.