Manufacturers Acceptance Corporation v. Vaughn

305 S.W.2d 513, 43 Tenn. App. 9, 1956 Tenn. App. LEXIS 148
CourtCourt of Appeals of Tennessee
DecidedAugust 31, 1956
StatusPublished
Cited by11 cases

This text of 305 S.W.2d 513 (Manufacturers Acceptance Corporation v. Vaughn) 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
Manufacturers Acceptance Corporation v. Vaughn, 305 S.W.2d 513, 43 Tenn. App. 9, 1956 Tenn. App. LEXIS 148 (Tenn. Ct. App. 1956).

Opinion

SHRIVER, J.

This began as a replevin suit for the recovery of a 1953 Chevrolet automobile growing out of the following sequence of events.

1. W. L. Cookston traded in his 1953 Chevrolet sedan automobile to Gentry Chevrolet Co. on the purchase of a truck, in August 1954. There was a lien on the Chevrolet in favor of General Motors Acceptance Corp. (hereinafter referred to as G.M.A.C.) to secure $640.39.

*12 2. Gentry Chevrolet Co. then, on August 16,1954, paid off the lien owed by Cookston to G.M.A.C., and about 30 days later, G.M.A.C. forwarded the certificate of title, which was in its possession, to Cookston with a statement showing that the lien had been satisfied.

3. In the meantime Gentry Chevrolet Co. sold the Chevrolet to one Ray Vaughn, taking his old car in trade and gave him a bill of sale to the Chevrolet and had him execute a title retention note for the balance of the purchase price. This sale and conditional sales contract were not registered with State Department as required by Statute.

4. Vaughn then set about trying to get possession of the certificate of title to said automobile. He went to a representative of Gentry Chevrolet Co. who said it was in the files but later stated that it had not been returned from G.M.A.C. Upon inquiry at the office of G.M.A.C. he was told that it had been mailed to Cookston. He then went to Cookston’s home and procured the certificate from the latter’s wife.

5. A few days later Vaughn and a man named Henderson went before M. L. Potter, a Notary Public in Hamilton County, where Henderson posed as Cookston and executed an assignment of the title certificate to Vaughn.

6. Vaughn then went to the Southern Acceptance Corp. to get a loan on the vehicle but was refused. He was told that it would be necessary for him to have the title transferred to his name. He, thereupon, made application through the County Court Clerk, to the State Motor Vehicle Division, for a transfer of .the title to him.

*13 He then took his copy of the application for transfer to Manufacturers Acceptance Corp. and was granted a loan of $600 on one occasion and about $400 on another.

7. About three weeks later Manufacturers Acceptance Corp. took Vaughn’s copy of the application for title transfer and appended their lien notice and other necessary papers thereto and forwarded it to the Motor Vehicle Division in Nashville.

8. Before the aforesaid papers of Manufacturers Acceptance Corp. were received by the Motor Vehicle Division in Nashville, Vaughn’s application had been received and acted on. A clear and free title certificate had been forwarded to him.

9. Armed with a certificate showing no encumbrances Vaughn went back to Southern Acceptance Corp. and borrowed $797.14.

10. Southern Acceptance Corp. promptly forwarded the title certificate along with their lien and other papers to the Motor Vehicle Division and the certificate was returned showing Southern to be the only lienor.

11. Shortly thereafter, Vaughn took the Chevrolet back to Gentry Chevrolet Co., surrendered it and was given a release of the note and chattel mortgage which he had executed to them.

12. By this time Manufacturers Acceptance Corporation’s papers had reached the Motor Vehicle Division where it was observed that these papers antedated those of Southern Acceptance Corporation, whereupon, the Division requested Southern to return their papers for correction. Southern refused to do this.

*14 I

The Proceedings

1. Manufacturers brought this suit in replevin against Gentry Chevrolet Co. and Yaughn.

2. Gentry Chevrolet Co. filed an answer and cross-bill bringing in G.M.A.C., Southern Acceptance Corp. and M. L. Potter, the Notary Public, and his surety.

3. Southern also filed a cross-bill and there are numerous amendments, answers, etc., so that all necessary parties are before the Court.

4. On averment in the bill that there was default in the payments due on complainant’s loan to Vaughn, the replevin was issued persuant to fiat and served on Gentry Chevrolet Co., who then had possession, and the automobile in question was turned over to complainant, Manufacturers Acceptance Corp.

5. The Chancellor wrote a full and well reasoned opinion which was made a part of the record and which was implemented by a decree as follows:

“This cause came on to be heard on the 29th day of September, 1955, before the Hon. H. J. Garrett, Chancellor, upon the various pleadings, the depositions and exhibits of witnesses and argument of counsel; at which time the Court took the matter under advisement and requested briefs to be filed on behalf of all of the parties, from all of which the Court rendered an opinion on the 15th day of December, 1955, which is as follows:
“Opinion — See pp. 69 thru 79.
*15 “It appears that the Gentry Chevrolet Co., Inc. never had title to the automobile in question and has no valid claim to said automobile.
“In regard to the conflict as to the superiority of liens, the Court is of the opinion that the lien of the Southern Acceptance Corporation is superior to that claimed by the Manufacturers Acceptance Corporation, and, furthermore, it is the only valid lien of record.
“The Court is of the opinion that the General Motors Acceptance Corporation was in no way guilty of any negligence or violation of the requirements of the Motor Vehicle Title and Registration Acts, and it is therefore, absolved of any liability.
“As to the liability of the defendant, M. L. Potter, Notary Public, and his surety, Great American Indemnity Company, the Court is of the opinion that his actions did not. cause any of the losses involved in this matter, and he is also absolved of any liability.
“A pro confesso was taken by both Gentry Chevrolet Co., Inc. and Manufacturers Acceptance Corporation as to the defendant, Raymond Vaughn, and they both are entitled to recover from him.
“It is, therefore, ordered, adjudged and decreed that:
“1. The cross-complainant, Southern Acceptance Corporation, is entitled to satisfy its judgment of Seven Hundred Ninety-six and 14/100 Dollars ($796.14) which has been obtained in the Justice of the Peace Court of Marion County, Tennessee under *16 the terms and provisions of the chattel mortgage which it now holds.
“2. The Gentry Chevrolet Co., Inc. is entitled to recover the amount of One Thousand Six Hundred Thirty-nine and 44/100 Dollars ($1,639.44) from the defendant, Baymond Vaughn.
“3. The Manufacturers Acceptance Corporation is entitled to recover the amount of One Thousand Two Hundred Sixty-eight and 16/100 Dollars ($1,-268.16) from the defendant, Baymond Vaughn.
“4.

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Bluebook (online)
305 S.W.2d 513, 43 Tenn. App. 9, 1956 Tenn. App. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manufacturers-acceptance-corporation-v-vaughn-tennctapp-1956.