RAY WOODS, ETC.,
v.
JAMES E. THOMPSON
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Ray Woods, a car seller in Texas, brought a replevin action to recover an automobile after a complex transaction involving fraud. The Florida Supreme Court affirmed the trial court's judgment for the defendant-purchaser, holding that a bona fide purchaser for value is protected and that the verdict was supported by evidence despite certain jury instructions that were irrelevant.
The court held that there was sufficient evidence of a sale, though voidable between the original parties. A bona fide purchaser for value is protected under these circumstances, and the verdict for the defendant-purchaser was supported by the record. The loss should fall on the party whose conduct enabled the wrongdoer to commit the fraud.
“Where one of two innocent parties must suffer through the act or negligence of a third person, the loss should fall upon the one who by his conduct created the circumstances which enabled the third party to perpetuate (perpetrate) the wrong or cause the loss.”
Establishes the controlling principle that the loss should fall on the party whose conduct enabled the fraud, supporting judgment for the bona fide purchaser.
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Join FLexlaw to unlock all legal intelligenceAbner negotiated with plaintiff-appellant Woods in Dallas, Texas to purchase an automobile and was given an invoice in exchange for checks. One of Abn…
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Appellant-plaintiff brought a replevin action and upon trial the verdict was “for the defendant” and the trial court entered a final judgment that defendant recover the automobile in the hands of the sheriff.,
Motion for new trial was denied and plaintiff appeals and assigns as grounds for appeal six alleged errors of the trial judge.
The first assignment of error complains that the trial judge erred in not directing a verdict for the plaintiff.
The second and third assignments of error complain bf the trial judge, in this replevin case, having given the jury a charge on the law relating to the consignment of personalty to a factor. In the present case there was no controversy involving the law relating to consignee or factors. In the case of Marriott v. Meadows, 138 Fla. 436, 189 So. 415, the rights of the parties were directly affected by the law relating to factors. These charges given seem to have been taken from this case and the authorities therein cited.
The fourth assignment of error complains about the trial judge charging the jury upon the law as contained in Section 319.15 F. S. 1941, F. S. A. relating to the enforcement of Liens against motor vehicles and subsequently purchasers and the rights of the lienor when the lien is not recorded, etc.
The fifth and sixth assignments relate to the form of the verdict and judgment.
The record brought here by appellant shows that one Abner negotiated with appellant (in Dallas, Texas) for the purchase of the car; that Abner was given an invoice for the car in exchange for some checks; that one of Abner’s checks for payment was dishonored; that Abner brought the car to Florida and sold it to defendant-appellee using a forged title certificate of Arkansas to evidence his title; that the car was delivered to Abner in exchange for two checks one of which was a traveler’s check but the title certificate was to be withheld until Abner’s personal check cleared, which it did not.
*114The prime question is whether or not there was a “sale.” It is our conclusion that there was sufficient evidence for the jury to conclude there was a sale. It is a matter of law that it was voidable as between the parties but that a bona fide purchaser for value will be protected under the circumstances. An important question is whether the delivery was conditional upon the check being honored by the bank upon which it was drawn or whether the seller waived payment in cash at time of delivery, subject to his rights and remedies in event the check was not honored.
“ . . . Where under the terms of the sale the title passes tq the buyer, though the seller had the right to retain the possession until the price was paid, and the buyer wrongfully acquired possession without payment, it has been held that the buyer, in replevin to regain possession, must found his complaint on his special property and is not entitled to recover under a complaint alleging an absolute title. It would be otherwise, however, if no title had passed to the buyer.” 23 R. C. L. 1388. — and
"Where one of two innocent parties must suffer through the act or negligence of a third person, the loss should fall upon the one who by his conduct created the circumstances which enabled the third party to perpetuate (perpetrate) the wrong or cause the loss. American Process Co. v. Florida White Pressed Brick Co. 56 Fla. 116, text 121, 47 So. 942, 16 Ann. Cas. 1054." Commercial Credit Co., Inc. v. W. M. Parker, 101 Fla. 928, 933, 132 So. 640.
As between the parties the sale was voidable but considering that the subject matter was an automobile capable of being speedily moved to any part of the country, that there is evidence that part of the purchase price was actually paid, that plaintiff gave Abner an invoice reciting there was no collateral agreement or understanding and that the law favors bona fide purchasers for value, it is our conclusion that the record supports the verdict.
It appears that the trial judge did not err in denying plaintiff’s motion for a directed verdict; that his charge relating to consignment to factors was irrelevant to the issues but no harm has been made to appear; that the law relating to the *115enforcement of liens was likewise irrelevant and harmless; and that if the verdict and judgment are not in the proper form that it will in nowise prejudice the plaintiff.
Affirmed.
THOMAS, C. J., BUFORD and ADAMS, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
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Volusia Disc. Co., Inc. v. Alexander K-F Motors, 88 So. 2d 302 (Fla. 1956)…as exhibited to [*307] the finance company as evidence of the dealer’s title and as indicating that the security interest of the finance company was adequately protected by the unrestricted title transferred to the dealer. Compare Woods v. Thompson, 159 Fla. 112, 31 So. 2d 62. By the foregoing analysis of the testimony appearing in the record before us, we are not here intending to hold that upon a full trial the Discount Company appellant should necessarily be successful. We do here hold, however, that th…
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Universal C. I. T. Credit Corp. v. Gen. Fin. Corp. OF Fla., 176 So. 2d 102 (Fla. 3d DCA 1965)…ently was exhibited to the finance company as evidence of the dealer’s title and as indicating that the security interest of the finance company was adequately protected by the unrestricted title transferred to the dealer. Compare Woods v. Thompson, 159 Fla. 112, 31 So. 2d 62.” As in Volusia, supra, there are conflicts oil material issues of fact in this cause. The question of whether the actual title to the automobile ever vested in Matthews, as a result of the delivery and acceptance of the check, and th…
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Richter's Jewelry Co., Inc. v. Frank's Fine Jewelry, Inc., 188 So. 2d 37 (Fla. 3d DCA 1966)…nt is entitled to a summary final judgment as a matter of law. Accordingly, the judgment appealed is reversed and the cause remanded with directions to enter judgment not inconsistent with this opinion. Reversed and remanded. . Woods v. Thompson, 159 Fla. 112, 31 So. 2d 62 (1947); E. E. Alley Co. v. Ball, 102 Fla. 1034, 136 So. 704 (1931).…
Authorities Cited
- Am. Process Co. v. Fla. White Pressed Brick Co., 56 Fla. 116 (Fla. 1908)
- Commercial Credit Co. v. Parker, 101 Fla. 928 (Fla. 1931)
- Marriott v. Meadows, 138 Fla. 436 (Fla. 1939)