Gen. Motors Accep. Corp'n v. Chestnut, Sheriff

155 S.E. 231, 158 S.C. 42, 1930 S.C. LEXIS 203
CourtSupreme Court of South Carolina
DecidedAugust 15, 1930
Docket12964
StatusPublished
Cited by5 cases

This text of 155 S.E. 231 (Gen. Motors Accep. Corp'n v. Chestnut, Sheriff) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gen. Motors Accep. Corp'n v. Chestnut, Sheriff, 155 S.E. 231, 158 S.C. 42, 1930 S.C. LEXIS 203 (S.C. 1930).

Opinions

The opinion of the Court was delivered by

Mr. Justice BeEase.

While H. P. Anderson, in violation of law, was transporting about 40 gallons of alcoholic liquors in a Buick automobile, in Horry County, the respondents, Sheriff Chestnut and Peace Officer Allen, of that county, arrested Anderson, seized the automobile and proceeded to confiscate it, under the authority of Section 885 of the Criminal Code of 1922. Thereafter, the appellant brought claim and de *45 livery suit to recover the automobile, on the ground that it held a valid, unpaid chattel mortgage, executed by Anderson to D. Y. Rivenbark, which had been assigned to the appellant before the maturity of the paper; the appellant claiming that it was entirely innocent of any consent or knowledge of the illegal use of the automobile by Anderson. By .his answer, Sheriff Chestnut admitted the seizure of the automobile, and alleged the illegal use thereof by Anderson in the transportation of whisky, with the knowledge of the appellant and its agents of that use.

The trial of the case before Circuit Judge Townsend and a jury, in the Court of Common Pleas for Horry County, resulted in a verdict and judgment in favor of Sheriff Chestnut. The appellant has asked us to review the case on the exceptions hereafter mentioned.

In a cause of this kind, the test of the right of a mortgagee, under Section 885 of the Criminal Code 1922, to recover, or not to recover, the property covered by his mortgage, is the mortgagee’s guilt or innocence in the use of the vehicle or automobile for the unlawful purpose of transporting alcoholic liquors. Ward v. Greer, 155 S. C., 426, 152 S. E., 678; Manufacturers’ Finance Acceptance Corporation v. Bramlett, 157 S. C., 419, 154 S. E., 410.

The appellant is a corporation. It can only act and speak by and through its agents, officers, servants and employees. If any authorized agent, officer, employee or servant of the appellant consented to the use of the automobile by Anderson in the illegal transportation of alcoholic liquors, or had knowledge of such illegal use by Anderson, the automobile was subject to confiscation, even if the appellant did hold an unpaid chattel mortgage thereon. Section 885, Vol. 2, Criminal Code 1922; Ward v. Greer, supra; Manufacturers, Etc., v. Bramlett, supra.

There is no need to cite authority for three other legal propositions: (1) The principal is bound by the acts and conduct of his agent, performed within the *46 scope, or .within the apparent scope, of the agency; (2) agency, knowledge and consent may be established not only by direct evidence, but by circumstantial evidence as well; and (3) the acts and declarations of an alleged agent may be considered with other competent proof of the agency for the purpose of establishing agency.

Along with these legal propositions is another, applicable here, that if there was any competent, relevant evidence adduced in the trial, tending to show that the appellant, by any of its agents, consented to the illegal use of the automobile by Anderson, or had knowledge of such use by him, it was the duty of the presiding Judge to submit such issues to the jury for determination.

With the legal propositions in mind, we consider first the exception (No. 7) of the appellant, based upon the refusal of the trial Judge to direct a verdict in its favor; and, in that connection, some of the grounds of exception 10, relating to the refusal to grant a new trial. The grounds upon which the directed verdict was asked were: (1) That the only reasonable inference to be drawn from the evidence was that the appellant was the innocent holder of the conditional sale contract (recognized as a mortgage under our law),- constituting a lien over the automobile, and that the appellant had no knowledge of the illegal use to which the automobile was being put, or likely to be put, by Anderson; and (2) that there was no reasonable inference to be drawn from the testimony that Rivenbark, who sold the automobile to Anderson, and assigned the paper to the appellant, was an agent of the appellant, and, therefore, nó knowledge which he had as to the illegal use of the automobile could be imputed to the appellant.

There was some evidence to show that Anderson, who lived in Horry County, the alleged “bootlegger” (and the allegation to that effect seems uncontroverted), bought the Buick automobile from Rivenbark on March 20, 1929, at Marion; he paid $552.00 in cash and executed, not to Riven- *47 bark, but, at Rivenbark’s instance, to the appellant a conditional sale contract, covering the automobile purchased to secure the balance of the purchase price, $1,047.00, payable in monthly installments of $88.00; and the contract was assigned by Rivenbark to the appellant, not without recourse, but with the guarantee of Rivenbark to make payment in case of default by Anderson. The contract was executed in triplicate; the original went to the appellant’s office in Columbia; Anderson, the purchaser, was delivered one; and Rivenbark kept the third. Appellant sent Rivenbark some money, the exact amount not stated in the record, for the paper. No money due on the paper was paid by Anderson to Rivenbark, such payments as were paid being sent by Anderson direct to the Columbia office. Rivenbark admitted, however, that he had notice from the company of Ander- ■ son’s failure to make promptly one of the payments when it became due. Rivenbark and the appellant, within three years previous, had-at least a hundred transactions of a similar kind. Many times customers made payments to Rivenbark, who remitted them to the appellant. Rivenbark would sometimes get after debtors about their payments. When the automobile involved here was seized, Rivenbark soon got notice of that fact and went before a magistrate in Horry County to assist in the issuing of papers to recover from the Sheriff the possession of the car. He testified that his purpose was to “prevent the car going to the Federal.Government.” The papers issued by the magistrate were in the name of Rivenbark as agent of the appellant. The magistrate, of course, did not have jurisdiction, the car being valued at a sum far greater than $100.00, and the action instituted was not carried forward. Another agent of the appellant visited Horry County and caused this action to be instituted. Rivenbark, right after the car was seized by the Sheriff, went to Conway and looked at the condition of the seized automobile.

While Rivenbark vigorously testified to the contrary, EM. Hennessy, a peace officer, a witness for the respondents, *48 swore that prior to the sale of the Buick to H. P. Anderson, he informed Rivenbark that Anderson was engaged in the business of “bootlegging” in Horry County, along with his brother, Dock Anderson; the conversation, according to Hennessy, taking place after the sale of another Buick automobile by Rivenbark to Dock Anderson. Hennessy also testified that after the sale to H. P. Anderson, he had another talk with Rivenbark. In that conversation, he asked Rivenbark if he “wasn’t afraid he would lose it,” and that Rivenbark said, “No, he had sold Dock a Buick coupe and he hadn’t had any trouble with that, and he didn’t think he would have any trouble about the roadster.” The roadster was the car sold to H. P. Anderson.

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Bluebook (online)
155 S.E. 231, 158 S.C. 42, 1930 S.C. LEXIS 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gen-motors-accep-corpn-v-chestnut-sheriff-sc-1930.