Salkeld v. Davis

247 S.W.2d 517, 1952 Ky. LEXIS 712
CourtCourt of Appeals of Kentucky
DecidedMarch 28, 1952
StatusPublished

This text of 247 S.W.2d 517 (Salkeld v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salkeld v. Davis, 247 S.W.2d 517, 1952 Ky. LEXIS 712 (Ky. Ct. App. 1952).

Opinion

'COMBS, Justice.

Stanley D-avis, appellee here, bought a dry cleaning establishment from Marion P. Salkeld, one of the appellants, on May 1, 1946. The agreed purchase price was $1,425, of which $1,125 was paid in cas-h, and a note for $300 due 90 days thereafter executed for the balance. The note was secured by a chattel mortgage on the dry cleaning ' equipment. The note was not paid when due and Salkeld refused to accept a renewal.

There is no conflict in the testimony to this point. Beyond this point, the parties are in complete disagreement, not only as to the important facts, but also about the slightest details. Appellants contend that [519]*519when the note matured and a renewal note was refused, Davis abandoned the property. He contends 'he was forced out of his business by the appellants, who appropriated it for themselves.

We think the following facts are established with reasonable certainty: The dry cleaning business was located on Vermont Avenue in Louisville. Marion Salkeld’s wife, Alice, the other appellant here, owned an interest in the business. Marion’s brother, Arthur, not a party to this appeal, operated a shoe repairing and hat blocking business in the' rear of the storeroom where the cleaning plant was located. Marion Salkeld held a one-year lease on the storeroom which contained a clause prohibiting subleasing, the expiration date of the lease being October 25, 1946. For some reason, unexplained in the record, Davis accepted a lease on a portion of the storeroom from Arthur Salkeld, who not only had no color of right to possession, ■but, under the terms of Marion’s lease, was a technical trespasser himself. Although Marion’s lease, which was the only -claim any of the parties had to possession of the building, expired the following October, the lease from Arthur to Davis was for a purported term of one year from April 29, at a monthly rental of $15. Marion Salkeld executed and delivered to Davis -a bill of sale for the dry cleaning business. The instrument was not notarized, contained the signature of only one witness, and the county court clerk refused to admit it to record.

Davis embarked on his duties as proprietor of the dry cleaning business and Arthur continued to conduct his shoe repairing and hat blocking enterprise in the same premises. We have no criterion as to the success of Arthur’s enterprise, but Davis’ business did not flourish.- Furthermore, discord soon developed between the dry cleaner and the hat blo-cker. Complaining of the loss of certain articles from the storeroom, Arthur changed the lock on the door. Davis thereafter was admitted to the premises by courtesy of Arthur’s daughter, who kept the key to the new lock. It does not appear, however, that Davis was ever actually refused admittance. Davis and Arthur had other disagreements, the most serious of which seems to have occurred because of the failure of Davis to install an exhaust pipe and provide fans to meet Arthur’s specifications. It is impossible to determine the comparative fault of the parties in regard to this particular controversy. This was the state of affairs, however, on August 1 when Davis’ note became due and Marion refused an extension. According to Davis, Arthur then refused to accept further payment of rent on the storeroom and refused to permit him to enter the premises. In any event, Davis exercised no more control over the business or equipment, and Arthur took charge.

On October 3 Davis’ attorney notified Marion and Arthur Salkeld by letter that Davis still claimed the business. The letter was ignored and the dry cleaning business, together with the shoe repairing and hat blocking business, was sold to Herman Weiner for “around $2200.” It is admitted that Weiner was an innocent purchaser and that Davis had no advance notice of the sale.

Davis filed suit against the brothers Sal-keld, Herman Weiner, and Alice Salkeld, wife of Marion, on January 8, 1947, and subsequently filed two amended petitions. The petition as amended sets out, in sub-1 stance, the facts which have been summarized above. The prayer is'for $1425, the amount of the purchase price paid and -assumed by Davis, and $45, the amount of the rent paid by him during the three months he occupied the premises.

The case finally came to trial on May 4, 1950, and by agreement was tried by the judge without the intervention of a jury. The court rendered judgment for Davis in the amount of $1,425 against, Marion Salkeld, Alice Salkeld, and Arthur Salkeld. It appears from an affidavit' of Davis’ counsel that the trial judge informed the Sal-kelds that the judgment would be credited in the amount of $300 (this being the amount of the note for the balance of the purchase price which was not paid) upon return of the note to Davis, or execution [520]*520of a bond in that amount to- protect him from collection of the note by a holder in due course.

Appellants contend Davis failed to' prove his charges of fraud and conspiracy; that the Salkelds had a legal right to- take possession of the dry cleaning equipment under the terms of the chattel mortgage; that the action is 'based on tort, and there is no evidence of damages; that Marion Salkeld’s attorney failed to notify him of the trial date, and by reason thereof he was not adequately represented at the trial of the case.

We think it is established by the evidence that the Salkelds dealt unfairly with Davis. Their actions, when considered together, establish a pattern of conduct which impels the inference they intended to cheat and defraud him. Commencing with the execution of a void lease by Arthur, and ending with repossession and sale of the equipment by both the brothers, it is apparent that Davis was over-reached. There is no> escape from the conclusion that Arthur and Marion worked in close affinity in all their dealings with Davis, and it is shown that Marion not only was present and acquiesced in the sale of the equipment to Weiner, but received part of the proceeds. Although the Salkelds had the right under the terms of their chattel mortgage to repossess the equipment, if this could be done in a peaceable manner, they had no legal right to dispose of the equipment without notice to Davis. Commercial Credit Co. v. Cooper, 246 Ky. 513, 55 S.W.2d 381. Their profession of good faith in regard to this transaction is unconvincing in light of the fact that Davis’ attorney notified them of his claim prior to the sale to Weiner. Their arbitrary conduct in this respect reflects its shadow and beclouds the other transactions which, standing alone, might be subject to explanation.

Appellants argue very forcefully that Davis’ case, as stated in his pleadings, is based on tort, and that there is no competent evidence upon which to base the measure of damages. It is true the pleadings state a cause of action based on tort, and there is no evidence fixing the value of the property at the time it was appropriated iby the Salkelds, which ordinarily would be the measure of damage to Davis. But we think the petition also states a cause of action on unjust enrichment, or money had and received without consideration, and for which the law implies a promise to- repay. It is apparent the trial judge accepted this theory o'f the case, as evidenced by the fact the judgment is for the amount of the purchase price Davis agreed to pay for the property. We have held that a claim of this nature can be maintained as a common law action of assumpsit. Tidwell v. O’Bryan’s Adm’r, 297 Ky. 749,

Related

Commercial Credit Co. v. Cooper
55 S.W.2d 381 (Court of Appeals of Kentucky (pre-1976), 1932)
Tidwell v. O'Bryan's Adm'r.
181 S.W.2d 260 (Court of Appeals of Kentucky (pre-1976), 1944)

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Bluebook (online)
247 S.W.2d 517, 1952 Ky. LEXIS 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salkeld-v-davis-kyctapp-1952.