Tingley v. Smith

1937 OK 599, 72 P.2d 729, 181 Okla. 84, 1937 Okla. LEXIS 45
CourtSupreme Court of Oklahoma
DecidedOctober 19, 1937
DocketNo. 27409.
StatusPublished
Cited by2 cases

This text of 1937 OK 599 (Tingley v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tingley v. Smith, 1937 OK 599, 72 P.2d 729, 181 Okla. 84, 1937 Okla. LEXIS 45 (Okla. 1937).

Opinion

PHELPS, J.

This appeal is by sureties *85 to reverse the judgment of the trial court entered against them on a replevin bond.

As is usual in such a case, there were two lawsuits involved; the first one being the replevin action itself, and the second being the present action, on the bond filed by the former .plaintiff when he instituted the replevin action.

Fred Gantz was the mortgagee of certain personal property owned by H. G. Smith and Glen Smith. Alleging default in the mortgage, by reason of which he was entitled to possession of the mortgaged property for the purpose of foreclosing the mortgage, he filed in the district court his replevin action. Prior to the date on which the defendants were required to answer, he foreclosed the mortgage by posting notices, conducting the mortgage sale, and purchasing the property himself. The defendants thereafter filed their answer, wherein they denied that there had been any default of the provisions in the mortgage, and that therefore the plaintiff was not entitled to the possession thereof for the purpose of foreclosing the mortgage, and in the same pleading by way of cross-petition they asked damages against the plaintiff for certain tortious acts of his, including conversion of the property, said conversion consisting of the sale thereof prior to determination of the issues in the replevin action. When the case came on for trial the defendants dismissed their claims for damages against the plaintiff on all issues alleged in their answer except the aforesaid conversion, and had those issues docketed separately, so that the case was tried on the theory that if the defendants were entitled to any damages against the plaintiff, it was solely by reason of his aforesaid conversion of the property.

The trial court sustained a demurrer to the plaintiff’s evidence in that action, and submitted to the jury the question of the extent of the damages suffered by defendants by reason of plaintiff’s conversion of the property. The jury found that the reasonable market value of the property exceeded the amount of the mortgage indebtedness of the defendants to plaintiff, and returned a verdict for the defendants in the amount of said excess. The trial judge entered judgment on the verdicts, and that judgment became final. Thus, the plaintiff failed to prevail in his replevin action, and the defendants recovered judgment for damages against him for his conversion of the replevined property pendente lite.

The defendants in the foregoing action then filed this action against the sureties on the replevin bond which had been posted by plaintiff upon the commencement of the former action, the judgment not having-been paid. Thus the defendants in the first action are the plaintiffs in this action, and the sureties on plaintiff’s replevin bond in the first action are the defendants in this action.

Eight separately numbered propositions are contained in the brief of plaintiffs in error, but they are largely interrelated and may be combined for purposes of discussion. Several of these propositions, in their last analysis, are predicated upon the assumption that if the defendants in the replevin action (present plaintiffs) were indebted to the mortgagee upon ■ the date the replevin action was filed, the mortgagee was entitled to the possession of the property as a matter of law, and that, therefore no judgment could be validly entered against the sureties on the replevin bond, since the gist of the action was the right to possession at the commencement of the action. And replying thereto in their briefs, defendants in error say that this assumption is incorrect.

It is self-evident that the right of the plaintiff in the replevin action to the possession of the property, by reason of any alleged default in the mortgage, is an issue which was determined and foreclosed in that action. Only the pleadings in that action, and certain statements of counsel therein, are before us in the present record. Those pleadings reveal that the defendants therein, who are plaintiffs in this action, denied that there was any default in the mortgage. But even assuming that there was a default in the mortgage on the date the replevin action was filed, nevertheless, in view of the general denial subsequently filed therein, the defendants were entitled to a judicial determination of that question, in that action. Whether there was a default in the mortgage could not be judicially determined until the trial of the case on its merits. The defendants in that action may have produced evidence that the mortgage was not in default, in which case *86 the plaintiff’s attempted replevin of the property would have failed. But hefore the defendants had filed any answer In that action the plaintiff posted notices of sale, and sold the property under the mortgage. This was conversion. In Salisbury v. First Nat. Bank of Taloga, 99 Okla. 138, 221 P. 444, in a similar case, we held that:

“The sale of the property pending the suit, while in custodia legis, by the plaintiff, constitutes conversion and does not bind the defendant. And on the final trial of the cause, the defendant is entitled to prove the reasonable market value of the property at the time of the sale and recover same should plaintiff fail, and in the event the plaintiff prevails, defendant is entitled to .credit for such sum as the reasonable market value of the property is proven to be.”

We held in Mid-Continent Motor Securities Co. of Tulsa v. Art Harris Transfer & Storage Co. of Muskogee, 97 Okla. 139, 223 P. 130, that where a mortgagee who had brought an action for possession of mortgaged property for the purpose of foreclosure, and obtained possession thereof under a replevin bond, sold the property at foreclosure sale before the final determination of the replevin action, the same constituted conversion. That is the rule in this state, and it was so held in those decisions and in the. decisions cited below.

Section 10956, O. S. 1931, 42 Okla. St. Ann., sec. 22, provides that the wrongful conversion of personal property by the person holding the lien thereon extinguishes the lien. When the plaintiff files his re-plevin bond for the purpose of taking immediate possession of the property upon the institution of the suit, and thereby obtains possession of it, the possession is not his for all purposes, but the property is really in custodia legis, and must remain in that status until final determination of the controversy. Federal Nat. Bank of Shawnee v. Lindsey, 172 Okla. 30, 43 P. (2d) 1036.

Since in such cases the plaintiff does not have legal title to the property, his conversion thereof prior to the determination of the right to possession is a conversion of the defendant’s property, which is a tort, for the redress of which the defendant may have his damages; subject, of course, to proof of said damage.

Although the gist of the action of replevin is the right of the plaintiff to immediate possession of the property at the commencement of the action, if the rights of the parties change pendente lite, the judgment should adjust the equities 'as they stand at the rendition of the judgment. Brook v. Bayless, 6 Okla. 568, 52 P. 738; Cherry v. Sharp, 172 Okla. 241, 45 P. (2d) 70. The time of conversion of the property mortgaged, whether prior or subsequent to the commencement of the replevin action, is immaterial. Wilson Motor Co. v. Dunn, 129 Okla. 211, 264 P. 194, 57 A. L. R. 17.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gripe v. Walker
1964 OK 24 (Supreme Court of Oklahoma, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
1937 OK 599, 72 P.2d 729, 181 Okla. 84, 1937 Okla. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tingley-v-smith-okla-1937.