Seale Motor Co. Inc. v. Stone

62 S.E.2d 824, 218 S.C. 373, 25 A.L.R. 2d 1118, 1950 S.C. LEXIS 83
CourtSupreme Court of South Carolina
DecidedDecember 28, 1950
Docket16450
StatusPublished
Cited by6 cases

This text of 62 S.E.2d 824 (Seale Motor Co. Inc. v. Stone) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seale Motor Co. Inc. v. Stone, 62 S.E.2d 824, 218 S.C. 373, 25 A.L.R. 2d 1118, 1950 S.C. LEXIS 83 (S.C. 1950).

Opinions

StukES, Justice.

On January 20, 1949, Seale Motor Company, Incorporated, of Hazard, Kentucky, sold a Crosley station wagon to Warren Poindexter, so described in the body of the self-styled “contract”, who signed a title retention contract, in the nature of a chattel mortgage securing the unpaid portion of the purchase price, as W. E. Poindexter. The printed form was that of the seller, the names of whose officers appear at the top, one being C. M. Seale, vice-president. The issue to be determined arises out of the purported acknowledgment which appears at the foot of the contract form and upon the faith of which it was recorded on the date of execution. Copy follows:

“State of Kentucky,

County of Perry:

I, Carl M. Seale, D. C. in and for the county and state aforesaid certify there came before me in said County and State Perry, Ky. who produced the foregoing contract and acknowledged same to be his act and deed in due form of law.

Witness my hand this 20 day of January, 1949.

Prentiss Baker, Clerk, P. C.

By: Carl M. Seale, D. C. (Signed)

Notary Public, Perry County, Kentucky.

My commission expires ..............”

[376]*376The credit portion of the purchase price was $566.40, payable in twelve equal successive monthly installments, none of which has been paid. The automobile was removed from the State of Kentucky in violation of the terms of the contract and became the property of a Columbia dealer who transferred it to respondent in a trade and the latter thereby became a purchaser for value in good faith, without actual notice of the lien. The original vendor, Seale Motor Company, appellant here, located the automobile in the hands of respondent and brought this action for possession, contending that the recorded contract to it constituted constructive notice to respondent. The complaint was usual in form and the defendant, now respondent, pleaded bona fide purchaser for value without notice and also estoppel. The latter issue was submitted upon trial to a jury, that is, whether appellant negligently misled respondent into the purchase of the mortgaged property.. The verdict was for appellant. Thereafter respondent moved for judgment non obstante veredicto upon grounds which he had submitted for direction of verdict in his favor. The motion was granted and the trial court held that the adequacy of the acknowledgment should be tested by the law of this State because of the failure of appellant to plead the law of Kentucky in accord with the Uniform Judicial Notice of Foreign Law Act approved April 8, 1948, 45 Stat. 1813. It was further held that the cases of Woolfolk v. Graniteville Mfg. Co., 22 S. C. 332, and Watts v. Whetstone, 79 S. C. 357, 60 S. E. 703, necessitate the conclusion of insufficiency of the acknowledgment to entitle the contract to record, wherefore it did not constitute notice to respondent.

After the judgment for respondent notwithstanding the verdict appellant moved for permission to amend the complaint to allege its conception of the Kentucky law and to conform the pleading to the facts (meaning the acknowledgment and recording of the contract) proved at the trial, which the court refused and the appeal also embraces alleged error therein. In this connection, appellant’s brief contains [377]*377the pertinent Kentucky statutes which were introduced in evidence at the trial, as follows:

“Section 382.650. A chattel mortgage may be executed by the mortgagor or by his duly authorized agent and shall be witnessed or acknowledged as provided in Kentucky Revised Statutes 382.130 to 382.150.”

“Section 382.130. Deeds executed in this state may be admitted to record:

“(1) On the acknowledgment, before the proper clerk, by the party making the deed;

^

“(5) On the certificate of a county clerk of this state, or any notary public, that the deed has been acknowledged before him by the party making the deed * * *.

“Section 382.160. Where the acknowledgment of a deed is taken by an officer of this state or by an officer residing out of this state, he may simply certify that it was acknowledged before him, and when it was done.”

Appellant has briefed its exceptions to present three questions: First, was the acknowledgment fatally defective? Second, does the law of this State govern? And third, was it error to refuse appellant’s motion to amend the complaint? However, examination of the statutes and review of the decisions generally,.including Kentucky and South Carolina, leave no doubt that the acknowledgment should be held to be fatally defective under the law of both. States, and this result renders unnecessary consideration of the other questions which have been argued.

The Kentucky statutes have been set out above. Ours corresponding is Code Sec. 3632, as follows: “Before any deed or other instrument in writing can be recorded in this State, the execution thereof shall be first proved by the affidavit of a subscribing witness to said instrument, taken before some officer within this State competent to administer an oath. If the affidavit be taken without the limits of this [378]*378State,” etc. Decisions construing and applying the statute, including those cited supra as relied upon by the lower court, are found in the footnote to the section in the code. To them should be added the recent case of Franklin Savings & Loan Co. v. Riddle, 216 S. C. 367, 57 S. E. (2d) 910, where the acknowledgment (probate) was only latently defective, so recording on the strength of it effected constructive notice of the lien. In the case now in hand the acknowledgment was defective on its face which requires opposite result.

The manifest purpose of the quoted statute is to require for record proof of the authenticity of the instrument — that it was executed by the purported maker. Dillon & Son Co. v. Oliver, 106 S. C. 410, 91 S. E. 304. So with the Kentucky statute, supra. It requires acknowledgment, quoting and adding emphasis: “by the party making the deed.”

The claimed acknowledgment in this case contains no reference to the identity of the maker. For aught that appears, the acknowledgor may have been the mortgagee. The insertion of “Perry, Ky.” in the blank provided for the name of the acknowledgor indicates oversight but can it be said with any degree of certainty that it was intended to instead insert “W. E. Poindexter” or “Warren Poindexter” ? We do not think so. The only connection between the contract and the claimed acknowledgment is that they are annexed, are parts of the same printed form, and the latter refers to the former as “foregoing”; but that does not meet the legal requirements.

The subject in controversy is dealt with in a copious annotation in 29 A. L. R. 919, supplemented in Newton Finance Corp. v. Conner, 161 Tenn. 441, 33 S. W. (2d) 95, 72 A. L. R. 1290. From the former, at pages 982, 1001 and 1002, are the following conclusions: “It is essential that the certificate show in some way who made the acknowledgment, and that he was the person who executed the instrument acknowledged. * * *

[379]*379“The omission of the name of the grantor or affiant in the certificate, leaving a blank where the name ought to be, or simply reciting the fact of acknowledgment, but not stating by whom it was made, has been held to be fatal. * * %

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Seale Motor Co. Inc. v. Stone
62 S.E.2d 824 (Supreme Court of South Carolina, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
62 S.E.2d 824, 218 S.C. 373, 25 A.L.R. 2d 1118, 1950 S.C. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seale-motor-co-inc-v-stone-sc-1950.