Stroud National Bank v. Owens

2006 OK CIV APP 37, 134 P.3d 870, 2005 Okla. Civ. App. LEXIS 128, 2006 WL 1155167
CourtCourt of Civil Appeals of Oklahoma
DecidedDecember 9, 2005
DocketNo. 101,122
StatusPublished
Cited by7 cases

This text of 2006 OK CIV APP 37 (Stroud National Bank v. Owens) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stroud National Bank v. Owens, 2006 OK CIV APP 37, 134 P.3d 870, 2005 Okla. Civ. App. LEXIS 128, 2006 WL 1155167 (Okla. Ct. App. 2005).

Opinion

OPINION BY

ROBERT DICK BELL, Judge.

¶ 1 In this action for replevin and conversion, Defendant/Appellant Dale Owens appeals from the trial court’s order imposing a lien, ordering the sale of Owens’ 1995 Bobcat, awarding a monetary judgment and assessing a civil penalty, attorney fees and costs in favor of Plaintiff/Appellee Stroud National Bank, Stroud, Oklahoma (Wellston Branch). DefendanVAppellant Kirby Kyles appeals from the trial court’s order assessing attorney fees and costs against Kyles and in favor of Bank. For the reasons set forth below, we affirm.

[874]*874I. Facts Relevant to Bank’s Action Against Owens

¶ 2 On March 10, 2001, James E. Hooker, Jr., and Wendy L. Hooker executed a promissory note and security agreement in favor of Bank. The security agreement granted Bank a security interest in a “1996 Melroe Bobcat Model #873 & accessories thereof, S# 14111321” '(the “Subject Bobcat”). Bank’s security interest in the Subject Bobcat was perfected by the filing of a UCC-1 financing statement with the County Clerk of Oklahoma County on March 13, 2001.

¶ 3 In early September, 2001, Owens purchased from the Hookers a 1995 Melroe Bobcat Model # 873 bearing serial number 514111321. Owens traded a 1966 Ford Mustang for the Bobcat. Less than a year later, Owens re-purchased the Mustang from the Hookers for $9,000.00. In September of 2002, Owens purchased a Model # 863 Bobcat from the Hookers for $2,500.00. Owens testified he did not check the UCC records prior to purchasing either Bobcat. Wendy Hooker testified she specifically informed Owens the Model # 873 Bobcat was mortgaged.

¶ 4 The Hookers defaulted on their promissory note to Bank, became insolvent and eventually filed for and received a discharge in bankruptcy. On April 17, 2003, Bank filed a replevin action against Owens to repossess the Subject Bobcat. A temporary restraining order (TRO) was entered against Owens the same day. The writ of replevin was issued May 2003, and served upon Owens. Owens filed an answer, counterclaim and cross-claim denying that he was in possession of the Subject Bobcat. Owens also requested the trial court grant him sole and exclusive ownership of the Model # 873 Bobcat, which he claimed was not the Subject Bobcat.

¶ 5 Bank later filed a second amended petition alleging Owens wrongfully and with reeldess disregard caused the depreciation in the value of the Subject Bobcat from $9,000.00 to $1,666.00 by removing its engine and bucket. Bank sought punitive damages, attorney fees and costs, together with either (1) the delivery of the Subject Bobcat in its present condition and a judgment against Owens for $7,334.00 as special damages or (2) judgment in the amount of $9,000.00. Thereafter, Bank filed a motion for summary adjudication on-the issue that the description in the filed financing statement was legally sufficient to give actual and constructive notice to Owens that Bank had a security agreement in the Model # 873 Bobcat he purchased from the Hookers. The trial court sustained the motion and the case proceeded to trial on the remaining issues.

¶ 6 At trial, Owens contended the Model # 873 Bobcat he owned was not subject to the order of delivery because it had a different year of manufacture and a different serial number than the Subject Bobcat. Owens also claimed that when he acquired the Bobcat, it was not in working order, its engine was “blown” and it was missing the bucket. Owens testified he completely rebuilt the engine and installed a bucket at his own expense. Therefore, Owens reasoned, he was entitled to deliver the Bobcat to Bank in the same condition it was in when he acquired it — without an engine and bucket. Wendy Hooker testified the Model # 873 Bobcat was in good working order when it was sold to Owens. (She testified the Model # 863 Bobcat the Hookers sold to Owens in 2002 did have a “blown motor” at the time of sale). An expert witness opined the Model # 873 Bobcat would have been worth $10,690.00 with an engine and a bucket. Without the engine, the Bobcat was worth only $1,666.00.

¶ 7 The court rendered its decision from the bench in favor of Bank on May 20, 2004. The journal entry of judgment, entered July 26, 2004, found (1) the reasonable fair cash market value of the Model # 873 Bobcat at the time of Owens’ possession was $9,000.00, (2) Owens had actual knowledge the Bobcat was mortgaged, and the description of the Bobcat on the UCC-1 was sufficient to put anyone on notice of Bank’s lien, (3) Owens refused to permit Bank to take possession of the Bobcat after demand, and (4) Owens willfully removed the motor from the Bobcat, thereby materially reducing its value, notwithstanding that a restraining order was entered and served on Owens prohibiting him from injuring or damaging the Bobcat in his possession and that his actions were in reckless disregard of Bank’s rights and a [875]*875willful violation of the court’s restraining order.

¶ 8 The court’s journal entry granted Bank a judgment against Owens for the sum of $14,000.00 ($9,000.00 for the value of the Bobcat and a civil penalty of $5,000.00 for Owens’ willful and wrongful conduct).1 The court imposed a lien on the Bobcat and ordered Owens to sell the Bobcat and apply the sales proceeds to the monetary judgment in favor of Bank. The court reserved the question of attorney fees for a later hearing. After conducting that hearing, the trial court awarded Bank $5,800.00 in attorney fees and $425.01 for costs. Owens appeals from said judgments.

- II. Facts Relevant to Bank’s Action Against Kyles

¶ 9 The Hookers also granted a security interest to Bank in a 1996 “6T-2 Trailer” and accessories (the Trailer). Bank’s security interest in the Trailer was also perfected by the filing of a UCC-1 financing statement with the County Clerk of Oklahoma County on March 13, 2001. At some point in time, Kyles obtained possession of the Trailer from the Hookers. Kyles did not check the UCC records prior to accepting the Trailer.

¶ 10 When the Hookers defaulted on their promissory note, Bank sought unsuccessfully to obtain the Trailer from Kyles. A writ of replevin was issued and served upon Kyles, and the sheriff replevied the Trailer on May 2, 2003. Bank filed an amended petition to add a claim for costs and attorney fees incurred by Bank in executing the replevin against Kyles. Bank initially obtained a default judgment against Kyles which was subsequently vacated with Bank’s consent. Numerous pleadings and objections ensued between the parties regarding Bank’s request for attorney fees and costs. The trial court granted Bank’s motion for summary judgment against Kyles on Bank’s claim for attorney fees subject to presentation of time records at a hearing. The trial court found “this was an action for replevin wherein it became necessary for the plaintiff to file suit in order to recover collateral. If Defendant Kyles claimed no interest in the collateral, then no suit would have been necessary.”

¶ 11 Bank’s counsel thereafter presented its time records and Kyles filed several pleadings opposing the award of attorney fees. Ultimately, the trial court awarded judgment to Bank against Kyles for the amount of $1,418.75 in attorney fees and $392.00 in costs. From said judgment, Kyles appeals.

III. Appellate Issues Urged by Owens

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Cite This Page — Counsel Stack

Bluebook (online)
2006 OK CIV APP 37, 134 P.3d 870, 2005 Okla. Civ. App. LEXIS 128, 2006 WL 1155167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stroud-national-bank-v-owens-oklacivapp-2005.