General Motors Acceptance Corp. v. Long-Lewis Hardware Co.

306 So. 2d 277, 54 Ala. App. 188, 15 U.C.C. Rep. Serv. (West) 496, 1974 Ala. Civ. App. LEXIS 455
CourtCourt of Civil Appeals of Alabama
DecidedAugust 28, 1974
DocketCiv. 347
StatusPublished
Cited by9 cases

This text of 306 So. 2d 277 (General Motors Acceptance Corp. v. Long-Lewis Hardware Co.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Motors Acceptance Corp. v. Long-Lewis Hardware Co., 306 So. 2d 277, 54 Ala. App. 188, 15 U.C.C. Rep. Serv. (West) 496, 1974 Ala. Civ. App. LEXIS 455 (Ala. Ct. App. 1974).

Opinions

BRADLEY, Judge.

On April 27, 1972 J. D. Schrader of 225 W. Campbell Drive, Midwest City, Oklahoma, purchased a 1972 Pontiac Grand Prix, I.D. 2F57Y2A187557, from Joe Coker Pontiac, Inc. of Oklahoma City, Oklahoma. A retail installment contract on the vehicle was executed by the purchaser and assigned by the seller to General Motors Acceptance Corporation, the appellant (hereinafter referred to as GMAC). The outstanding balance on the contract at this time was $3,180.28. A financing statement was also executed at this time and, on May 3, 1972, filed with the Oklahoma County Clerk, the county of debtor’s residence.

On May 9, 1972 an Alabama tag, No. 18-5249, was issued by the Probate Judge of Cleburne County, Alabama on the above described vehicle to James D. Schrader of Route 1, Muscadine, Alabama.

On June 1, 1972 a certificate of title was issued by the Georgia Department of Revenue, Motor Vehicle Unit, on the above described vehicle. The owner of the vehicle was listed as James D. Schrader, Box 62, Lincolnton, Georgia. No security interest holders were listed on the Georgia certificate of title. Accompanying the application for the Georgia certificate of title was a bill of sale from W. J. Smith, Route 7, Oxford, Alabama to James D. Schrader.

The next day, June 2, 1972, J. D. Schrader of Trussville, Alabama sold the above described vehicle to Long-Lewis Hardware Company, a corporation, Bessemer, Alabama, the appellee (hereinafter referred to as Long-Lewis) for $4,308. Long-Lewis subsequently sold the vehicle in question.

GMAC filed financing statements with the Probate Judge of Cleburne County, Alabama on August 1, 1972; with the Probate Judge of Jefferson County, Alabama, Birmingham Division, on August 15, 1972; with the Probate Judge of Jefferson County, Alabama, Bessemer Division, on August 21, 1972; and with the Probate Judge of Calhoun County, Alabama in August 1972.

On February 15, 1973 GMAC filed an action in the Circuit Court of Jefferson County, Birmingham Division, against Long-Lewis for conversion of the vehicle. The action was subsequently transferred to the Bessemer Division of the Jefferson County Circuit Court where trial was held before the court sitting without a jury. [191]*191The judgment was in favor of Long-Lewis and this appeal is from that judgment.

GMAC says that a security interest perfected on a motor vehicle according to the laws of the state where the property was at the time of the perfection of the security interest and which state does not as a prerequisite to perfection require the notation on the certificate of title of the security interest, remains perfected for four months after its removal to Alabama and cites us to Title 7A, Section 9-103(3), Code of Alabama 1940, as Recompiled 1958.

Section 9-103(3) provides in pertinent part as follows:

“(3) If personal property other than that governed by subsections (1) and (2) is already subject to a security interest when it is brought into this state, the validity of the security interest in this state is to be determined by the law (including the conflict of laws rules) of the jurisdiction where the property was when the security interest attached. If the security interest was already perfected under the law of the jurisdiction where the property was when the security interest attached and before being brought into this state, the security interest continues perfected in this state for four months and also thereafter if within the four month period it is perfected in this state. The security interest may also be perfected in this state after the expiration of the four month period; in such case perfection dates from the time of perfection in this state. If the security interest was not perfected under the law of the jurisdiction where the property was when the security interest attached and before being brought into this state, it may be perfected in this state; in such case perfection dates from the time of perfection in this state.”

In the case at bar, according to the laws of Oklahoma, the security interest on the vehicle in question was perfected in Oklahoma on May 3, 1972, when the financing statement was filed with the Court Clerk of Oklahoma County, Oklahoma, the county of debtor’s residence. Title 12A, Section 9-301(1), Oklahoma Statutes. Oklahoma does not require as a condition of perfection the notation on the certificate of title of the security interest. King Godfrey v. Rogers, 157 Okl. 216, 11 P.2d 935.

GMAC having perfected its security interest in the vehicle in question according to the L.ws of Oklahoma, which state was the situs of the vehicle when the security interest was perfected had, according to Alabama law, four months to perfect its security interest in the vehicle after it reached Alabama, and during that four month period, while the vehicle is in Alabama, the continuity of the previously perfected security interest remains unbroken. Section 9-103(3), supra; Deposit Nat. Bank of Mobile County v. Chrysler Credit Corp., 48 Ala.App. 161, 263 So.2d 139; First Nat. Bank v. Stamper, 93 N.J.Super. 150, 225 A. 2d 162. The evidence shows that GMAC perfected its security interest in the vehicle within three months after its removal to Alabama.

In the present case the security interest was perfected in Oklahoma and continued to be perfected in Alabama for four months after May 9, 1972, the date that an Alabama registration was obtained for the automobile. Prior to the expiration of the four month period, Long-Lewis bought the car in question.

Appellee contends, however, that since the vehicle was taken to Georgia where a clear certification of title was obtained, i. e., one not containing a notation of a prior lien, that Long-Lewis should not be penalized for Schrader’s failure to list on his Georgia application the security interest of GMAC.

Georgia is a certificate of title state that requires the notation on the certificate of title-of the security interest in order for it to be perfected. Title 68, Section 421a(b), Georgia Code. But it is also provided by Georgia law that if the security interest is not shown on another state’s certificate of title, the security interest so perfected in [192]*192that other state remains perfected for six months after the first Georgia certificate of title has been issued. Title 68, Section 421a(d)(2)(B), Georgia Code.

Surely this provision of the Georgia law would permit GMAC to perfect its security interest in Georgia within six months of the issuance of the clean certificate of title to Schrader and during that period would remain perfected in Georgia.

The evidence shows that the vehicle was carried into the State of Georgia on June 1, 1972 and was sold to Long-Lewis on June 2, 1972. The sale obviously occurred during the time that GMAC’s security interest was valid in Georgia. Hence, we must conclude that the issuance of the Georgia certificate had no effect on the validity of GMAC’s security interest at the time of the sale of the vehicle to Long-Lewis in Alabama. In either state, the security interest of GMAC was in force and effect at the time of the :sale to Long-Lewis and GMAC’s. interest in the vehicle could not be destroyed by Long-Lewis’ reliance on the Georgia certificate of title. Title 7A, Sec. 9-103(3), Alabama Code, supra; Title 68, Sec. 421a(d)(2) (B), Georgia Code, supra.

Appellee also argues that Section 9-103 (4) of Title 7A, Alabama Code, should be applied in this instance rather than Section 9-103(3).

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General Motors Acceptance Corp. v. Long-Lewis Hardware Co.
306 So. 2d 282 (Supreme Court of Alabama, 1974)
General Motors Acceptance Corp. v. Long-Lewis Hardware Co.
306 So. 2d 277 (Court of Civil Appeals of Alabama, 1974)

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306 So. 2d 277, 54 Ala. App. 188, 15 U.C.C. Rep. Serv. (West) 496, 1974 Ala. Civ. App. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-acceptance-corp-v-long-lewis-hardware-co-alacivapp-1974.