General Motors Acceptance Corp. v. Wilcox

95 S.W.2d 1368, 1936 Tex. App. LEXIS 748
CourtCourt of Appeals of Texas
DecidedJuly 3, 1936
DocketNo. 8310.
StatusPublished
Cited by2 cases

This text of 95 S.W.2d 1368 (General Motors Acceptance Corp. v. Wilcox) 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
General Motors Acceptance Corp. v. Wilcox, 95 S.W.2d 1368, 1936 Tex. App. LEXIS 748 (Tex. Ct. App. 1936).

Opinion

*1369 BLAIR, Justice.

This appeal is from an order overruling the plea of privilege of appellant to he sued in Bexar county, its domicile. Appellee sued appellant in Williamson county for damages for the conversion of an automobile on which he had a chattel mortgage, and maintained venue in that county under subdivision 9 of article 1995, which provides that where a suit is based upon a trespass it may be brought in the county where the trespass was committed.

The venue of the suit rests upon the time of the accrual of the cause of action for conversion of the automobile as being determinative of the place of the accrual of such cause of action. The trial court found that appellee had a first mortgage on the automobile in question and that appellant committed the act of conversion of it in Williamson county. Appellant contends that regardless of whether appellee had a first mortgage on the automobile, it was not guilty of any wrong and committed no act of conversion in taking possession of the automobile, because the agents of the mortgagor voluntarily surrendered possession of the automobile to appellant, and that therefore no act of conversion was committed until it refused to surrender the same upon reasonable demand, which demand and refusal occurred in Bexar county. We do not sustain the contention.

The facts are as follows: R. E. Kinsel was a retail automobile dealer at Granger, Williamson county, Tex. Appellant sold him a carload of Chevrolet áutomobiles, including the one in suit, the purchase price being evidenced by a note, and title to the automobile being reserved by a “trust receipt,” dated February 26, 1934. On March 13, 1934, Kinsel executed to appellant a “demonstration agreement,” by which Kin-sel was given the right to use the automobile in suit as a demonstrator. None of these instruments was recorded. On March 27, 1934, Kinsel executed appellant another trust receipt, dated February 26, 1934, in which appellant retained title to the automobile and which authorized appellant to take possession of and to sell same at public or private sale, under the condition's stipulated. This instrument was filed for registration on April 10, 1934. In the meantime, on March 13, 1934, Kinsel borrowed $450 from appellee, executed notes aggregating $465, and secured them by a chattel mortgage on the automobile, which mortgage was filed for registration in Williamson county on the next day. Appellee did not know of the trust receipts of appellant, which under the decisions of this state were mere mortgages on the automor bile, at the time he loaned Kinsel the $450 and accepted the notes and mortgage on the automobile. In the latter part of May, 1934, Kinsel disappeared from Granger and his whereabouts were unknown, leaving the automobile in question at his place of business. On June 1, 1934, appellant’s agent took possession of the automobile under the terms of the trust receipt, the agent testifying that the employees of Kinsel voluntarily surrendered the automobile to him at Granger, Tex. The agent immediately sent the automobile to. Georgetown, Tex., where he stored it for some seven or eight days, then moved it to Austin, Travis county, where it was placed in storage; and then caused the automobile to be moved to San Marcos, Hays county, where the same was later sold by appellant under its trust receipt agreement.

At the time appellant took possession of the automobile, two of appellee’s notes secured by the chattel'mortgage on the automobile in suit were past-due and unpaid, and none of the notes was ever paid. The mortgage authorized appellee to' take immediate possession of the property upon failure of Kinsel to pay any part of said indebtedness when it became due; and further provided that the property should not be taken out of Williamson county. It is settled law in this state that the conversion of personal property amounts to a “trespass” within the meaning of that term as used in subdivision 9 of article 1995. Frankfurt v. Grayson (Tex.Civ.App.) 80 S.W.(2d) 486; Bowers v. Bryant-Link Co. (Tex.Com.App.) 15 S.W.(2d) 598; Palmer v. Pinkston (Tex.Civ.App.) 282 S.W. 668; 68 C.J. p. 11, wherein “conversion” is defined as follows:

“The legal wrong denominated ‘convex sion’ is any unauthorized act of dominion or ownership exercised by one person over personal property belonging to another in denial of, or inconsistent with, his right.”

In 26 R.C.L. 1136, the rule is stated: “A mortgagee of chattels, with present right of possession, may maintain trover against a wrongdoer for the conversion of mortgaged property.”

In Texas the right of the mortgagee to sue for conversion is not dependent upon his possession, or his right of possession of the property, because his injury is just as great in one case as the other. Buffalo Pitts *1370 Co. v. Stringfellow-Hume Hdw. Co., 61 Tex.Civ.App. 49, 129 S.W. 1161; Fouts v. Ayres, 11 Tex.Civ.App. 338, 32 S.W. 435.

In the case of Farmers’ National Bank v. Dublin National Bank (Tex.Civ.App.) 55 S.W.(2d) 567, it is held that a junior mortgagee, with constructive notice of a senior mortgagee, who consents to taking the mortgaged property out of the county and the sale thereof, agreeing that the proceeds be paid on the junior mortgage debt, is liable in conversion to the senior mortgagee. The relation of appellant and appellee was that of junior and senior mortgagee, respectively, and appellant had constructive notice of the senior registered mortgage of appellee at the time he took possession of the mortgaged property and moved same out of the county, and sold it.

There is no merit to appellant’s contention that the automobile was voluntarily surrendered to it by employees of Kinsel. There was no proof that the employees had any authority to act for Kinsel. But even if this were true, such delivery would not be binding upon appellee, who held a senior registered mortgage on the automobile. If .Kinsel had been present and had willingly and voluntarily delivered the automobile to appellant’s agent, that fact would not have made the possession thereby acquired lawful as against appellee. Bailey v. Culver (Tex.Civ.App.) 175 S.W. 1083; Lasater v. Vandiver (Tex.Civ.App.) 29 S.W.(2d) 428; Equitable Loan Society v. Taylor Bros. Jewelry Co. (Tex.Civ.App.) 189 S.W. 516; Beaumont Rice Mills v. Dishman (Tex.Civ.App.) 72 S.W.(2d) 365.

Norjis there any merit to the contention of appellant that the conversion was not completed until there was a demand for the possession of the automobile and a refusal to deliver same by appellant. As between appellant and Kinsel that rule may have been applicable, but the rule has no application as between appellant and ap-pellee, who held a prior registered mortgage on the automobile, which was notice to the world of its existence. As between Kinsel, the mortgagor, and appellee, the senior mortgagee, both the mortgage and the statute (article 5496) prohibit the removal of the mortgaged property out of the county; and in the case of Oswald v. Giles (Tex.Civ.App.) 178 S.W. 677, 679, it is held: “The purchase of the property by the defendants with notice of the mortgage and its removal from the county of Galveston, without the consent of the holder of the mortgage, was a conversion of the property, and plaintiff, as the assignee of the mortgage, was entitled to sue therefor.”

In 26 R.C.L.

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95 S.W.2d 1368, 1936 Tex. App. LEXIS 748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-acceptance-corp-v-wilcox-texapp-1936.