Shephard v. Van Doren

60 P.2d 635, 40 N.M. 380
CourtNew Mexico Supreme Court
DecidedAugust 11, 1936
DocketNo. 4068.
StatusPublished
Cited by9 cases

This text of 60 P.2d 635 (Shephard v. Van Doren) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shephard v. Van Doren, 60 P.2d 635, 40 N.M. 380 (N.M. 1936).

Opinions

SADLER, Chief Justice.

This appeal is for review of a judgment in replevin. The plaintiff, who prevailed below, does business at Plainview, Tex., in the name of Shephard Chevrolet Company, conducting an automobile agency, selling new and used cars. He sold to one C. H. Little a certain used Chevrolet automobile, 1931 model, bearing engine number 2456779, under a conditional sales contract, duly filed with the county clerk in Lamb county, Tex., county of the purchaser’s residence, so as to constitute constructive notice of plaintiff’s contract. Under the laws of the state of Texas, the conditional sales contract was the equivalent of a chattel mortgage in plaintiff’s favor on the automobile in question.

Little, original purchaser, placed the automobile in possession of one Leo Parks, who transported same to Roswell and there had the motor number changed from 2456779 to 1392476. Parks subsequently pleaded guilty before the district court of Chaves county to a criminal offense involving this alteration of the engine numbers and received a sentence which was suspended. After this change in numbers, the car came again into possession of Little, who returned it to Texas. While there the plaintiff checked same and finding it to be the identical car theretofore sold Little, but with the motor number changed, made notation of the change in motor number on his (plaintiff’s) copy of the conditional sales contract and redelivered same into Little’s possession. Little returned it into Parle’s possession. The latter took the car to Roswell, where he sold it to one Carl Johnson, who in turn sold same to Elwood Van Doren, the defendant herein. Neither Johnson nor Van Doren had actual knowledge of plaintiff’s lien at the time of their respective purchases.

Little having defaulted in meeting the payments due under his purchase contract, and the plaintiff’s right to possession arising by its terms, he located the car with defendant and demanded its return to him. Possession being refused, he instituted this action in replevin. From a judgment in his favor, the defendant prosecutes this appeal.

While several points are presented and argued, only one of them need be considered, since it appears decisive. It is, in substance, that plaintiff’s act, after regaining possession of the automobile bearing a false engine number, in restoring the automobile to the original purchaser still bearing such false and altered number, denied to any subsequent good-faith purchaser the intended means of connecting it with plaintiff’s conditional sales contract; and that by reason thereof the plaintiff is estopped from asserting his lien against such a purchaser.

The trial court of its own motion made, findings as follows:

“On the date of the purchase of said automobile by C. H. Little, the plaintiff gave-to C. H. Little a bill of sale thereto and at the same time and a part of the same-transaction C. H. Little gave to the plaintiff the conditional sales contract heretofore mentioned which, under the .laws of the State of Texas is a mortgage.

“That the said C. H. Little turned the-said automobile over to one Leo Parks,, who brought the same to Roswell, New Mexico, and while in Roswell, New Mexico, had the motor number to said car-changed from 2456779 to 1392476.

“Thereafter, one Carl A. Johnson bought from Leo Parks the said automobile paying therefor a valuable consideration without actual knowledge of any interest oí: the plaintiff in and to said automobile.

“Thereafter the said Carl A. Johnson-sold to the defendant the automobile in. question and the defendant had no actual knowledge of any claim, right, title or in, terest of the plaintiff in and to said automobile. That both Carl A. Johnson and; the defendant were purchasers in good faith believing the said Leo Parks was the-owner of said car.

“That the conditional sales contract from the plaintiff to Little heretofore mentioned' was duly filed for record ini the. chattel; mortgage records of Lamb County, Texas, on the 21st day of June 1932.

“That under the laws of the State of Texas the filing of such conditional sales contract (or chattel mortgage as it is under the laws of the State of Texas) is constructive notice to all the world as to its contents.”

The defendant requested, and the trial court made, the following findings touching the issue under discussion, to wit:

“That subsequent to the original sale of said automobile by plaintiff to C. H. Little, and prior to the purchase of said automobile by the defendant, the engine therein had been changed or the numbers on the engine therein had been changed from 2456779 to 1392476 of which fact plaintiff had full knowledge, and that plaintiff after such change in engine or numbers had been made, had said automobile in his or its possession and noted on the original conditional sales contract, which he had in his possession such change in numbers, and thereafter allowed said automobile to go out of his possession and back to the possession of said C. H. Little, and that at the time of the purchase of said automobile by the defendant there was no record in any county in the State of Texas that plaintiff had a conditional sales contract with anyone on an automobile with an engine in the same numbered 1392476, and that defendant had no knowledge constructive or otherwise of such engine change or number changes.

“That at the time of the purchase by defendant of the automobile in question from Carl Johnson, the engine in said automobile was numbered 1392476, and that the plaintiff had knowledge that the engine in said car had such number, and that he had no conditional sales contract on record in the State of Texas with anyone upon an automobile bearing engine number 1392476.”

The two findings just quoted stand before us unchallenged by any exception on plaintiff’s part. Read in connection with other findings of the court, it must be taken as the fact that no substitution of the engine occurred, only the identifying numbers thereof being changed. Indeed, Parks, charged with having altered the motor numbers, pleaded guilty to having done so and received a suspended sentence therefor.

We have then this situation: The plaintiff, by instruments duly executed and filed for record in Lamb county, Tex., has a lien on a certain 1931 model Chevrolet automobile, bearing engine number 2456779. We may assume for purposes of our decision, as contended by the plaintiff and held by the trial court, that pursuant to the holding in Hart v. Oliver Farm Equipment Sales Company, 37 N.M. 267, 21 P.(2d) 96, on the facts here shown and under ordinary conditions, this lien would be recognized and enforced in New Mexico. Subsequent to reservation of the lien the automobile comes back into possession of the mortgagee bearing a false engine number. With knowledge that such is the case, the mortgagee, after noting the false number on his copy of the contract or mortgage, redelivers the car into original purchaser’s possession, and thereafter it passes into the hands of one who pays value without actual knowledge of any claim, right, title, or interest of the plaintiff in and to said automobile.

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Bluebook (online)
60 P.2d 635, 40 N.M. 380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shephard-v-van-doren-nm-1936.