Linn v. Reid

196 P. 13, 114 Wash. 609, 1921 Wash. LEXIS 671
Washington Supreme Court·Decided February 23, 1921·No. No. 16083·Published·Cited by 24 cases

Opinions

Mitchell, J.

— The facts in this case are not in dispute. Those pertinent to the decision are substantially as follows: On November 8, 1919, the plaintiff, a resident of Lewis county, was the owner of a Maxwell car; on that day two persons, driving a Hudson car which they had stolen from its owner in Portland, traded it to the plaintiff for the Maxwell car, each giving to the other the possession of the car traded for; thereafter the lawful owner of the Hudson car caused the plaintiff to surrender it; on November 15, 1919, the plaintiff found the Maxwell car in the possession of the defendant, who, on November 10, 1919, had purchased it from the persons who had obtained it in the trade with the plaintiff; the defendant paid to the two men for the Maxwell car the sum of $275, which was its reasonable value; before the purchase, the defendant, upon inquiry, was informed by the two men that they were from Centralia, Washington, were butchers by occupation, and that they were desirous of selling the Maxwell car as they were moving to the city of Tacoma; the defendant’s refusal of plaintiff’s demand to deliver the car resulted in this action of claim and delivery.

The trial resulted in findings of fact substantially as above set out, to which no exceptions were taken. Prom the findings the court concluded the defendant was a bona fide purchaser of the Maxwell car, but that the [611]*611plaintiff was the lawful owner of it and. entitled to recover possession of it. From a judgment in favor of the plaintiff, the defendant has appealed.

In considering the case, sight must not be lost of the manner in which respondent surrendered his car. He traded it and delivered possession of it to the two persons who traded and delivered to him possession of the Hudson car. There was no element of trespass on the part of the two persons in getting the Maxwell car. It was voluntarily surrendered by the respondent who parted with possession of it with intent to pass title to the wrongdoers, thus giving to them all the indicia of ownership and the apparent right of disposal. Under such circumstances, in the absence of a statutory rule to the contrary, a bona fide purchaser from the vendee will he protected. It is hut the enforcement of the old and familiar rule that, of two innocent persons one of whom must suffer by the fraud of a third person, he who has put it in the power of such third person to commit the fraud must he the sufferer. The basis of protection to the bona fide purchaser, in cases such as the present one, is the voluntary act of the original vendor in parting with both the title to and possession of the property. Unless this difference in the manner in which property is acquired from its lawful owner is kept in mind — that is, whether by trespass, or by the voluntary act of the lawful owner — a misunderstanding of the well-reasoned cases may follow.

In the case of Cochran v. Stewart, 21 Minn. 435, it was said:

“The true rule, as we think, is that in case of the sale and delivery by the owner of personal property, although he may have been induced to make such sale and delivery by fraudulent acts and representations of the vendee, amounting to a felony by statute, the [612]*612vendee may convey a good title to a bona fide purchaser.”

The same principle is clearly set forth and approved by this court in the ease of Woonsocket Rubber Co. v. Loewenberg Bros., 17 Wash. 29, 48 Pac. 785, 61 Am. St. 902, quoting with approval from the case of Barnard v. Campbell, 58 N. Y. 73. Other authorities to the same effect are: Benjamin, Sales (7th ed.), §§ 433 et seq.; 24 R. C. L. 378, § 665; 35 Cyc. 361-2, par. g.

Respondent contends the case of Globe Milling Co. v. Minnesota Elev. Co., 44 Minn. 153, 46 N. W. 306, repudiates the doctrine of the Cochran v. Stewart case, supra. We do not so understand. Only a casual reading of that case shows it turned upon the question of delivery of the property; it having been found the owners had never delivered the personal property, and hence there was no element of estoppel against their claiming against one who claimed to .be a purchaser from the owner’s vendee. For that reason, it was held the rule in the case of Cochran v. Stewart, supra, did not apply.

Respondent’s counsel, however, calls attention to § 2129, Rem. Code, which is as follows:

“All property obtained by larceny, robbery, or burglary, shall he restored to the owner; and no sale, whether in good faith on the part of the purchaser or not, shall divest the owner of his rights to such property; ...”

And §2601 (Id.), which is as follows;

“Every person who, with intent to deprive or defraud the owner thereof — (1) Shall take, lead or drive away the property of another; or (2) Shall obtain from the owner or another the possession of or title to any property, real or personal, by color or aid of any order for the payment or delivery of property or money or any check or draft, knowing that the maker or drawer of such order, check or draft was not author[613]*613ized or entitled to make or draw the same, or by color or aid of any fraudulent or false representation, personation or pretense or by any false token or writing or by any trick, device, bunco game or fortune-telling; or (3) . . .;or(4) . . .;and(5) . . .; Steals such property and shall be guilty of larceny.”

Therefrom it is argued that appellant’s vendors having obtained the car from respondent under circumstances amounting to larceny, therefore, under the express provisions of § 2129 of the code, the sale of the car to the appellant, whether he purchased it in good faith or not, did not divest the respondent of his right to the property.

An examination of the history of this legislation, coupled necessarily with the intent of the legislature in enacting § 2129 of the code, will show that the judgment in this case cannot rest upon this contention of the respondent. The question here turns not upon the meaning to be given to that portion of §2601 (Id.), defining larceny applicable to the act of appellant’s vendors in obtaining the car from the respondent (subdivision 2, obtaining goods by false pretenses), but upon the meaning of § 2129 preserving property rights in stolen goods — that is, goods obtained by larceny, robbery or burglary, as those terms were understood and intended to be used by the legislature at the time it enacted what is now § 2129 of Remington’s Code.

The first territorial legislature of 1854 enacted the following laws, viz.:

Laws of 1854, p. 83, §§ 45 and 46, defining grand and petit larceny, each of which required the feloniously stealing, taking and carrying, leading or driving away the personal property or goods of another. Section 53, p. 84:

[614]*614“Every person who shall falsely represent or personate another, and in snch assumed character, shall receive any money or other property whatever intended to he delivered to the party so personated, with intent to convert the same to his own use, shall be deemed guilty of larceny. ’ ’

Section 55, p. 85, embezzlement of money or other property, declared to be larceny.

Section 51, p'. 84 :

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Linn v. Reid, 196 P. 13, 114 Wash. 609, 1921 Wash. LEXIS 671 (Wash. 1921).

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