Sadler v. Garrett (In re Garrett)

45 B.R. 190, 1984 Bankr. LEXIS 4429
CourtDistrict Court, E.D. Virginia
DecidedDecember 17, 1984
DocketBankruptcy No. 81-00579-R; Adv. No. 84-0196-R
StatusPublished
Cited by2 cases

This text of 45 B.R. 190 (Sadler v. Garrett (In re Garrett)) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sadler v. Garrett (In re Garrett), 45 B.R. 190, 1984 Bankr. LEXIS 4429 (E.D. Va. 1984).

Opinion

MEMORANDUM OPINION

BLACKWELL N. SHELLEY, Bankruptcy Judge.

This matter came before the Court upon the complaint of the trustee, George W. [191]*191Sadler, Jr., against L. Tyler Garrett, the debtor’s son, to determine the true ownership and title to a certain Dusenberg race ear. The defendant answered the complaint alleging that the property was a gift from his father to him and, thus, the trustee in bankruptcy has no interest in the automobile. A trial was held on this matter on September 21, 1984 at which time the Court heard evidence and argument. At the conclusion of the trial, the Court took the matter under advisement. After a review of the evidence and argument of counsel, the Court makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

Linwood R.T. Garrett is the debtor in these Chapter 7 proceedings. He is the father of L. Tyler Garrett who is the defendant in this adversary proceeding. The trustee seeks to establish that no valid gift was ever made of the subject antique Du-senberg race car from father to son. Thus, the trustee seeks a determination by this Court that Linwood R.T. Garrett is the true owner of this automobile and that George Sadler succeeds to his rights as trustee in bankruptcy.

The pertinent facts were undisputed at trial. The automobile is currently located at 5725 Meadowbridge Road, Mechanics-ville, Virginia. The car is currently in poor condition, lacking a radiator, carburetor, and does not run. The car has remained at this location since it was first brought on the premises in 1965. The Meadowbridge Road property has been owned by Linwood R.T. Garrett during the entire time the vehicle has been stored there.

The testimony revealed that Linwood R.T. Garrett was the owner of the vehicle prior to 1965. The automobile was stored in a garage on Grace Street in Richmond, Virginia. The garage was one of several garages located in the immediate area. The evidence indicated that several of these garages were destroyed by fire. At this time a Mr. Freddy Pressler, an acquaintance of Linwood R.T. Garrett, had the car towed to his place of residence on Hermitage Road, Richmond, Virginia. The relocation of the vehicle to Pressler’s residence was done without Linwood R.T. Garrett’s knowledge. Later, Pressler called the elder Garrett and notified him that the car was in his possession on Hermitage Road. Due to the fact that Mr. Pressler had no place to store the vehicle on the premises, he requested that Linwood R.T. Garrett have the car picked up and moved to another location.

The vehicle was subsequently towed from Hermitage Road to the Meadow-bridge Road property. The testimony was that Mr. Linwood R.T. Garrett’s company probably paid for the towing. The son, L. Tyler Garrett, and Mr. Pressler knew where several of the vehicle’s parts were stored and these parts were recovered and also brought to the Meadowbridge Road property. When the car arrived at the Meadowbridge Road property, L. Tyler Garrett asked his father if he would “let him get the car running.” L. Tyler Garrett stated in his testimony that the gift occurred at this point. The undisputed testimony of both the elder Garrett and his son indicate that the elder Garrett intended to make a gift of the car to his son.

The conversation between the elder Garrett and his son which prompted the elder Garrett to give the car to his son took place prior to the car being placed in the trailer. The car was subsequently transferred to a second trailer, although it is unclear how soon after the car’s arrival at the Meadow-bridge Road property that this was done. The car has remained in this trailer from 1965 to date. The trailer is owned by Mr. Lee Crenshaw.

There were no signs on the trailer which would indicate the ownership of the trailer or its contents. The only indication of ownership is the fact that the vehicle and the trailer are located on the elder Garrett’s property. In response to questions from counsel for the trustee at the trial, L. Tyler Garrett testified that no personal property tax had ever been paid on the vehicle to his knowledge, no spare parts were ever bought by him to get the car running, no [192]*192work was ever done on the vehicle except to clean it once, and no one ever offered to purchase the vehicle from him.

L. Tyler Garrett testified that he was employed at the Division of Motor Vehicles (“DMV”) from January 2, 1970 to November of 1973. He indicated that while employed for DMV he researched the records of old car titles for evidence of a title to the subject automobile. This occurred in 1970. He further testified that he could not find a title for it in the records at DMV. Although DMV has a system for acquiring title to old cars which may never have been titled, Mr. Garrett testified that he did not seek to obtain a title because his understanding of the law was that you do not need a title to the vehicle unless you want to license it. Since the car had never been licensed, it was logical that there was no title. Since he did not wish to license it either, he did not seek a title.

L. Tyler Garrett owns other tangible personal property which he states was given to him by his father. This property consists of a boat with a trailer, an engine for the boat, and a hydroplane. Mr. L. Tyler Garrett testified that this property has at one time or another all been stored on the elder Garrett’s property, as has other property owned by the younger Garrett’s brother.

Finally, Mr. Linwood R.T. Garrett testified that offers had been made to him by others to purchase the car. Lee Crenshaw, the owner of the trailer, had made one offer. With respect to other possible offers, the elder Garrett could not recollect the specifics.

CONCLUSIONS OF LAW

The issue before the Court in this case is whether the facts as given are sufficient to establish a valid gift under Virginia law from Linwood R.T. Garrett to his son, L. Tyler Garrett of an antique Dusenberg race car. This Court must, therefore, inquire into the requirements of a valid gift under Virginia law in order to resolve this issue.

In Virginia, in order for there to be a valid gift of personal property, it must be shown that there existed a present intention on the part of the donor to make a gift, coupled with a delivery, either actual or constructive, such as to divest the donor of all dominion and control over the property and place it in the donee. Taylor v. Smith, 199 Va. 871, 102 S.E.2d 160 (1958). In addition to the common law requirements of a valid gift, Virginia Code § 55-3 states in pertinent part that “[n]o gift of any goods or chattels shall be valid unless by deed or will, or unless actual possession shall have come to and remained with the donee or some person claiming under him.” Va.Code § 55-3 (Repl.Vol.1981.)

The trustee takes the position that even assuming that this Court finds an intent to make a gift sufficient to satisfy the requirements of Virginia law, nevertheless the gift fails for lack of sufficient delivery because at no time did L. Tyler Garrett ever come into the actual possession of the vehicle as required by Virginia Code § 55-3. This Court does in fact conclude that Linwood R.T. Garrett held the requisite intention to make a gift of his Dusenberg race car in 1965 at the time the vehicle came onto the premises at the Meadowbridge Road property. The Court also finds that it was the intention of the parties that the gift be valid.

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Cite This Page — Counsel Stack

Bluebook (online)
45 B.R. 190, 1984 Bankr. LEXIS 4429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sadler-v-garrett-in-re-garrett-vaed-1984.