Gessler v. Winton

145 S.W.2d 789, 24 Tenn. App. 411, 1940 Tenn. App. LEXIS 47
CourtCourt of Appeals of Tennessee
DecidedJune 15, 1940
StatusPublished
Cited by8 cases

This text of 145 S.W.2d 789 (Gessler v. Winton) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gessler v. Winton, 145 S.W.2d 789, 24 Tenn. App. 411, 1940 Tenn. App. LEXIS 47 (Tenn. Ct. App. 1940).

Opinion

FELTS, J.

J. H. Gessler and 0. II. Riddle, partners, sued Hense Winton for breach of warranty of title to six mules bought by them from him at a public auction. His defense was that he made no warranty in fact and none could be implied in law because he sold the mules not as owner but merely as auctioneer for a disclosed third party. The trial judge, hearing the case without a jury, su;tained this defense and dismissed the suit. Plaintiffs appealed in error and insist that defendant bound himself personally upon an implied warranty because he sold the mules as the owner or at least as agent for an undisclosed principal and because he contracted in his own name and not as agent.

Defendant was a dealer in livestock, having a sale barn at Deeherd, Tennessee, where he regularly sold at public auction cattle, horses and mules. At these sales he would sell his own livestock and also that of other persons which had been sent to him to be sold by him for them on commission. On March 17, 1938, he had a sale, and plaintiffs bought twenty-two mules and two mares and paid defendant therefor by check, and he delivered the stock to plaintiffs.

Six of these mules were later taken by a superior title. Andy Smithson had sold these mules to Rube Love by a conditional sale contract, retaining the title to secure the purchase price; and Rube Love’s brother, A. L. Love, had carried these mules to defendant’s *414 auction, where, as stated, they were sold to plaintiffs. After plaintiffs had sold them to other persons they were taken from such persons in an action of replevin by Andy Smithson. Plaintiffs notified defendant of this and drew on him for $1,035, the price they had paid him for these particular mules. He declined to pay the draft, advising plaintiffs by letter that the mules had been sold to them by “Mr. Love” and that he had been advised Smithson would not be able to establish title to the mules. In the action for replevin there was a final judgment for Smithson; and plaintiffs had to reimburse their vendees for the value of the mules.

There was a conflict in the evidence as to the disclosures by defendant at the sale of these mules to plaintiffs. Gessler (Riddle was not present) testified that when the mules were offered for sale defendant said, “Here are some mules from Buffalo Valley,” and called some one’s name, and said “he can tell you about the mules;” that some one did state that they were good work mules; but that he bought them, thinking they belonged to defendant. Defendant testified that he announced that “these mules belong to Love Brothers from Buffalo Valley,” and asked Love to tell the crowd about the mules; and that A. L. Love stated that they were sound and well broken to work. Several other witnesses for defendant said that he announced that the-mules were “Love’s mules.” A. L. Love, witness for defendant, testified that defendant announced that'the mules “belonged to Love” and that he then told the crowd how good the mules were; but that he did not represent that they were his mules. Rube Love was not present. A. L. Love did not disclose that Smithson held title to the mules under the conditional sale to Rube Love.

As soon as the bidding was over defendant gave Gessler a bill of sale, for all his purchases, including the sis mules in question, which was as follows:

*415 “Deeherd, Tenn., March 17, 1938

“Sold to J. H. Gessler

“Hense Winton

“Dealer in Mules and Horses

“Auction Sales Every Thursday

Defendant, on cross-examination was asked Row many of the mules on this bill of sale belonged to him, and admitted that he owned most, if not all, of them except numbers 92, 93, and 94, listed as “Bought from A. L. Love,” the six mules in controversy. *416 He was also cross-examined about tbe stipulation in the bill of sale by which he retained title to the livestock until “all checks, drafts or notes” given therefor had been paid, and he stated that if plaintiffs’ check had not been paid he would have tided to repossess these six mules as well as all the others under this stipulation.

We agree with the learned trial judge that the preponderance of the evidence is that defendant announced he was selling these six mules as an auctioneer for Love Brothers. G-essler admits he was not paying attention to what defendant said, and he evidently failed to understand defendant’s announcement. But we think he is nevertheless chargeable with knowledge of what was publicly announced to prospective bidders.

It is true that where one in possession of a chattel sells it as owner the law implies a warranty of title by him. Code, sec. 7206; Rundle v. Capitol Chevrolet, Inc., 23 Tenn. App., 151, 129 S. W. (2d), 217. This is also true where an auctioneer sells personal property without disclosing his agency or his principal. See cases cited in Annotations, 23 A. L. R., 122, 14 B. R. C., 307; Mechem on Agency (2d Ed.), Vol. 2, sec. 2342; 7 C. J. S., Auctions and Auctioneers, sec. 13, p. 1270; 5 Am. Jur., 488. But where he discloses his principal he is not responsible to the buyer for the title unless he makes an agreement himself pledging his own responsibility. Benton v. Campbell, P. & Co. [1925], 2 K. B., 14 B. R. C., 295; Mercer v. Leihy, 139 Mich., 447, 102 N. W., 972. We think this is the meaning of our statute, Code, sec. 7206, which is as follows:

“In a contract to sell or a sale, unless a contrary intention appears, there is

“ (1) An implied warranty on the part of the seller that in ease of a sale he has a right to sell the goods, and that in case of a contract to sell he will have a right to sell the goods at the time when the property is to pass.

“(2) An implied warranty that the buyer shall have and enjoy quiet possession of the goods as against any lawful claims existing, at the time of the sale.

“(3) An implied warranty that the goods shall be free at the time of the sale from any charge or encumbrance in favor of'any third person, not declared or known to the buyer before or at the time when the contract or sale is made.

“(4) This section shall not, however, be held to render liable a sheriff, auctioneer, mortgagee, or other person professing to sell by virtue of authority in fact or law goods in which a third person has a legal or equitable interest. (Ib., sec. 13.)”

This statute does not apply where “a contrary intention appears.” It would not prevent an auctioneer from becoming personally liable where he contracts in his own name as principal and not as agent.

What is the effect of the bill of sale or invoice given by *417 defendant to Gessler? It shows the mules were "sold to J. H. Gessler” by "líense Winton” and “said Hense Winton” retained title to them until the cheek given for them was paid. That is, defendant sold as principal and not as agent. While the bill of sale described the six mules in question as "Bought from A. L. Love,” it similarly described all the others by listing the names of the persons from whom defendant bought them, and it contained nothing to indicate that he was selling any of the mules to Gessler as agent or otherwise than as principal.

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Cite This Page — Counsel Stack

Bluebook (online)
145 S.W.2d 789, 24 Tenn. App. 411, 1940 Tenn. App. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gessler-v-winton-tennctapp-1940.