Liberty National Bank & Trust Co. v. Garcia

1989 OK 96, 776 P.2d 1265, 1989 Okla. LEXIS 115, 1989 WL 72727
Supreme Court of Oklahoma·Decided July 5, 1989·No. No. 64677·Published·Cited by 2 cases

Opinion

HARGRAVE, Chief Justice.

The determinative issue in this appeal is whether the trial court erred in permitting the defendant to file a third-party petition adding a third-party defendant after summary judgment had been entered for the plaintiff. We hold that it did.

Liberty National Bank had a perfected security interest in a 1979 Ford Bronco purchased by Pauline Garcia and Liberty’s lien was duly noted on the vehicle certificate of title. Subsequently, Mrs. Garcia presented the certificate of title to Cynthia Griffin Tag Agency, which issued a new certificate in the name of Pauline and Tony Garcia. Liberty’s lien was omitted from the new certificate of title, apparently due to error by the tag agency’s employee.

Tony Garcia sold the Bronco to Hudiburg Chevrolet, Inc., presenting the “clean” certificate of title. Hudiburg then sold the vehicle to Rick Gore, a bona fide purchaser for value, who obtained a new certificate of title in his name, with no lien reflected thereon. Neither Hudiburg nor Gore knew of the existence of Liberty’s lien.

When Mrs. Garcia defaulted on her loan from Liberty, Liberty sued Mrs. Garcia and also Rick Gore for pre-judgment replevin of the vehicle on December 9, 1982. Hudi-burg was not named in the original action. Both Liberty and Gore moved for summary judgment, filing affidavits and briefs. Gore asserted the superiority of his title as a bona fide purchaser for value without notice, stating that he had purchased the vehicle from Hudiburg Chevrolet, Inc. and had been given a certificate of title with no lien noted thereon. The trial court granted summary judgment in favor of Liberty for possession of the vehicle, concluding as a matter of law that Liberty had a “special ownership and security interest in the property currently in the possession of the defendant”.

In the journal entry granting summary judgment for Liberty, the trial court gave defendant Rick Gore leave to file a third-party petition against Hudiburg Chevrolet, Inc., within fifteen days from the date thereof. The third-party petition does not appear in the record on appeal, but apparently Gore sought to recover for breach of warranty. Hudiburg entered its appearance on March 23, 1983. On March 28, 1983, Rick Gore filed his petition in error to this Court, appealing the summary judgment entered in favor of Liberty against Gore.

Hudiburg Chevrolet filed a motion to dismiss the third-party petition on the ground that the summary judgment in favor of Liberty was a final judgment which was currently on appeal, and that the trial court could not add additional parties to the judgment. The trial court overruled Hudi-burg’s motion to dismiss on June 1, 1983, and Hudiburg subsequently filed its answer and a motion for summary judgment which was denied. The fourth party, Cynthia Griffin, has not appealed.

On June 12, 1984, the Court of Appeals affirmed the summary judgment in favor of Liberty National Bank and Trust Company against Rick Gore.1

On April 26, 1985 Rick Gore filed a motion for summary judgment against Hudi-burg Chevrolet.

On May 24, 1985, the trial court entered an order permitting Hudiburg Chevrolet to file a fourth-party petition against Cynthia Griffin Tag Agency. Before Griffin’s answer time had run, the trial court granted defendant Rick Gore’s motion for summary judgment in the sum of $5,600.00 against Hudiburg Chevrolet. It is from that judgment that Hudiburg Chevrolet appeals.

Hudiburg asserts numerous grounds for reversal but we shall consider only Hudi-burg’s assertion that the trial court erred in permitting Hudiburg’s joinder as a third-party defendant after the court had en[1267] tered judgment for the plaintiff. We agree.

The procedural aspects of the case arose under Oklahoma’s former pleading code.2 The portions dealing with third-party practice are set out below:

Title 12 O.S.1981 § 273.1 B:

“A defendant may assert a third-party claim against a person who is not a party to the action within the time that he has to answer, and with permission of the court he may assert such a claim after the answer date has expired, but in either case the third-party defendant must be served with process and copies of the third-party claim must be delivered or mailed to all other parties to the action or their attorneys of record. Subsequent pleadings shall be the same as in other cases.”

Title 12 O.S.1981 § 323:

“All claims which arise out of the transaction or occurrence that is the foundation of the plaintiffs claim and which contain common questions of fact, may be joined in one action, and any person who is liable on such a claim may be joined as a party to the action. The court may order a separate trial of any claim or of any issue in the furtherance of a just and prompt determination of the controversy and to avoid delay or prejudice. Nothing herein permits the joinder of liability insurers or creates any right of contribution or indemnity which has not heretofore existed.”

Also, Title 12 O.S.1981 § 231 provides that any person may be made a defendant who has or claims an interest in the controversy adverse to the plaintiff, or who is a necessary party to a complete determination or settlement of the question involved therein.

Title 12 O.S.1981 § 236 provides that the court may determine any controversy between parties before it, when it can be done without prejudice to the rights of others, or by saving their rights; but when a determination of the controversy cannot be had without the presence of other parties, the court must order them to be brought in.

Third party practice is permissive except as described in § 236 above. The language of the above statutes refers to the time frame of “the action”. Section 273.1 B establishes the time frame for joinder as either the answer date or later, by permission of court and mailing copies to all other parties “to the action”. Section 323 says “may be joined in one action”, and “as a party to the action”. This contemplates that the addition of parties “to the action” would be, ipso facto, during the pendency of that action.

In interpreting the joinder provisions of Oklahoma’s former pleading code, we have said that our policy is to balance countervailing interests: (1) the interest of plaintiff in controlling the scope and extent of his cause of action and not having new claims or parties complicate or confuse his case, (2) the interest of defendant in having all parties and claims joined in same action to prevent vexatious suits and possible inconsistent judgments, (3) the interest of third parties in having access to a forum where there is possibility that stare decisis, res judicata or collateral estoppel may subsequently prevent them from seeking redress if not made a party to the original action, and (4) the general policy of applying relevant statutes liberally in the interest of justice and judicial economy by having the full subject matter of controversy settled in one action. Gettler v. Cities Service Co., 739 P.2d 515, 517 (Okl.1987).

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Liberty National Bank & Trust Co. v. Garcia, 1989 OK 96, 776 P.2d 1265, 1989 Okla. LEXIS 115, 1989 WL 72727 (Okla. 1989).

1989 OK 96 (Liberty National Bank & Trust Co. v. Garcia) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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