Rundle v. Capitol Chevrolet, Inc.

129 S.W.2d 217, 23 Tenn. App. 151
CourtCourt of Appeals of Tennessee
DecidedMarch 25, 1939
StatusPublished
Cited by10 cases

This text of 129 S.W.2d 217 (Rundle v. Capitol Chevrolet, Inc.) 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
Rundle v. Capitol Chevrolet, Inc., 129 S.W.2d 217, 23 Tenn. App. 151 (Tenn. Ct. App. 1939).

Opinion

FELTS, J.

S. B. Rundle bought a second-hand automobile from the Capitol Chevrolet, Inc. The price was $150. He paid $50 cash and promised to pay the balance, plus a carrying charge of $29.60, in 12 monthly installments of $10.80 each. The sale was upon condition that title should not pass until the car was paid for, and was evidenced by a written contract to this effect.

Before the first installment came due Rundle learned that the Capitol Chevrolet, Inc., did not have title to two of the tires which it had sold him on the car. The Apex Oil Corporation had previously sold these tires under a conditional sale, and it still held the title to them and had a debt of $28.50 against them. It called on Rundle to pay this debt or surrender the tires. He notified the Capitol Chevrolet, Inc., and asked it to adjust the matter, which it declined to do. The Apex Oil Corporation came to replevy the tires, and he surrendered them. He thereupon asked the Capitol Chevrolet, Inc., [154]*154to take back tbe car and refund tbe $50 be bad paid it, wbieb it also declined to do.

About a week later tbe first installment matured, and tbe General Motors Acceptance Corporation, to whom tbe Capitol Chevrolet, Inc., had transferred tbe conditional sale contract, repossessed tbe car, stored it in tbe garage of tbe Capitol Chevrolet, Inc., advertised and sold it for $100 to tbe Capitol Chevrolet, Inc. This company paid tbe deficit of $29.60 to tbe General Motors Acceptance Corporation and took an assignment of tbe conditional sale contract.

Three days later Bundle brought this suit in tbe court of general sessions to recover what be bad paid on tbe car. Defendant Capitol Chevrolet, Inc., denied bis right to recover and by cross-action sought to recover of him tbe deficit of $29.60, plus interest and attorney’s fees, under tbe conditional sale contract. That court allowed him a recovery of $28.50 and defendant a recovery of $29.60, and the offset tbe latter against tbe former.

He brought tbe case to tbe circuit court by certiorari. That court, trying tbe case without a jury, held that be was entitled to recover $11, the amount tbe court found it would have cost to replace tbe tires; and that defendant was entitled to recover of him $39.60, tbe deficit of $29.60 and $10 attorney’s fees; and tbe court, off-setting tbe $11 against $39.60, rendered judgment in favor of defendant against him for $28.60, taxing each party with one-half tbe costs.

Plaintiff appealed in error to this court and has assigned errors insisting that, upon tbe facts shown, defendant’s breach of warranty of title entitled him to rescind tbe sale and recover the $50 be paid on tbe car; and that tbe circuit court should have so held and allowed him a judgment for this amount against defendant and should not have allowed it any recovery against him.

Defendant has moved to dismiss tbe appeal in error because it was not perfected in time. Plaintiff was allowed 30 days from June 4, 1938, in which to perfect bis appeal in error either by giving bond or taking tbe oath. At tbe same term and on July 2 tbe court granted him “fifteen (15) days additional time within which to file bis bill of exceptions and otherwise perfect bis said appeal.” He filed the oath on July 5, which was within tbe additional time allowed; and tbe court bad power to grant such additional time. Physicians Mut. Health & Acc. Ins. Co. v. Grigsby, 165 Tenn., 151, 53 S. W. (2d), 381; Strain v. Roddy, 171 Tenn., 181, 101 S. W. (2d), 475. This additional time was allowed not only “to file bis bill of exceptions,” but also to “otherwise perfect bis said appeal,” which he did by taking tbe oath, as allowed by tbe orders of June 4 and July 2. Defendant’s motion is denied.

Defendant insists that it made no warranty of title to tbe car but that plaintiff purchased from it at bis peril. We cannot assent to this. Under the circumstances here appearing, tbe law raised [155]*155a warranty of title by defendant. Note, 16 Ann. Cas., 59; 2 Mecbem on Sales, sections 1300-1302, Benjamin on Sales (6tb Am. Ed.), section 639; 1 Williston on Sales (2 Ed.), sections 216-218.

Mecbem says (vol. 2, section 1300) : “It is also everywhere agreed that,-in a sale of a specific and ascertained chattel, any affirmation by the seller that the chattel is his is equivalent to an express warranty of title;, and that this affirmation may be implied from his conduct as well as from his words, and may also result from the nature and circumstances of the sale.”

Benjamin says (sec. 639) : “A sale of personal chattels implies an affirmation by the vendor that the chattel is his, and therefore he warrants the title, unless it be shown by the facts and circumstances of the sale that the vendor did not intend to assert ownership, but only to transfer such interest as he might have in the chattel sold.”

Summing up his discussion of the rule in United States, Mechem states (vol. 2, section 1302) : “It seems universally to be conceded here that where the seller is in possession of the goods a warranty of title accompanies the sale, upon the ground that his undertaking to sell under such circumstances is of itself an affirmation of his title” (citing many authorities).

In Trigg v. Faris, 24 Tenn. (5 Humph.), 343, the Court said: “It is a well settled principle, applicable to all sales of chattels in the possession of the vendor, that the act, or fact of sale, of itself, by operation of law, implies and involves a warranty of the title. This principle operates with as much force when the sale and transfer of the property is evidenced by writing, or by deed, as if the evidence of sale were merely verbal. And this principle does not contravene the general • rule of evidence, alluded to by the judge; because the warranty of his title is as strongly implied from the fact of sale, which fact is proved by deed, as if it were proved otherwise. It does not enlarge the writing; it arises by operation of law, from the act or fact of sale itself. ’ ’

The Court in Gookin v. Graham, 24 Tenn. (5 Humph.), 480, page 484, said: “In a sale of personal property there is always an implied warranty of title, unless it be purchased under such circumstances as clearly show that the vendee intended to risk the title; as if the vendor be not in the possession, but the same be adversely in another.”

Where one in possession of goods sells them as owner, 'the law, in order to discourage dishonesty and fraud, will import into his contract of sale a warranty of title by him. On this point the Court in Word v. Cavin, 38 Tenn. (1 Head.), 506, 509, said:

“And it is clear, that although the terms of a written contract, though it be under seal, do not in themselves, contain -or import any express covenant as to the title, yet the law, in order to give a prop[156]*156er force and effect to tbe contract, and to discourage dishonesty and bad faith, will create and supply as a necessary result and consequence of the contract, certain covenants and obligations, which will bind the parties as effectually as if they had been expressed in the strongest and most explicit terms. Id. [Addison on Con.], 49.

“This doctrine is not at variance with any established principle of the law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shelton v. Tidwell
Court of Appeals of Tennessee, 2001
Tidwell v. Morgan Building System, Inc.
840 S.W.2d 373 (Court of Appeals of Tennessee, 1992)
Smith v. Scott Lewis Chevrolet, Inc.
843 S.W.2d 9 (Court of Appeals of Tennessee, 1992)
Lorentz v. Deardan
834 S.W.2d 316 (Court of Appeals of Tennessee, 1992)
Patton v. McHone
822 S.W.2d 608 (Court of Appeals of Tennessee, 1991)
Capitol Chevrolet Co. v. Earheart
627 S.W.2d 369 (Court of Appeals of Tennessee, 1981)
Lazarov v. Arnold Schwinn & Co.
183 F.2d 673 (Sixth Circuit, 1950)
Sanders v. Tomlin
198 S.W.2d 817 (Court of Appeals of Tennessee, 1946)
Allison v. Allison
193 S.W.2d 476 (Court of Appeals of Tennessee, 1945)
Gessler v. Winton
145 S.W.2d 789 (Court of Appeals of Tennessee, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
129 S.W.2d 217, 23 Tenn. App. 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rundle-v-capitol-chevrolet-inc-tennctapp-1939.