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Mitchell v. Ford Motor Credit Co.
688 P.2d 42
Okla.
1984
Check Treatment

*1 42 ap- interlocutory injunction is May § 993(3).

pealable by right. O.S. 1981 to com- may not be heard here

Marshall extraordinary use of

plain it

process.

Third, against law erects barrier upon adjudicative de-

successive attacks Principles to be void.

cision that is claimed jurisdictional judicata apply to a con-

of res

troversy they same force as do to with the

other Weaver issues Mfg. Co., dispute. 582 F.2d [1980] White v. and Eaton v. White, Cir.

[10th 1978]. presently prudent No assessment can — skimpy paperwork be- — Bray’s failure to fore us of the effect

appeal from the Commission’s refusal to

vacate No. 208017 have Order prosecution injunc- of the district court

his prohibit Marshall seeks

tion suit which

here. deny appli-

I would therefore Marshall’s original jurisdiction.

cation to assume

deciding jurisdictional contest the dis- from, entirely

trict free court should be

unhampered by, premature and hence guidance.

apt-to-be-improvident IRWIN, J.,

I am authorized to state that my views.

concurs K. and Linda

Warren MITCHELL C. Mitchell, Appellees, COMPANY, CREDIT

FORD MOTOR Recovery and Able Auto Appellants.

Company,

No. 57267.

Supreme Court of Oklahoma.

April

Rehearing Denied June

$6,500.00 accepted each. The creditor installment on the first initial annual trac- approximately days after it was due. tor payment Apparently unaware on the second tractor had been received two earlier, repos- creditor elected to weeks *3 engaged second tractor. It for sess the Recovery purpose Auto Able [Recover- the tractor could not be When second er]. found, days after the debtor some it, the payment on the creditor instructed repossess the first tractor. recoverer to repossession The creditor did effect of the it two first tractor and then returned later. weeks brought conversion, The suit for debtor alleging wrongfully had the tractor been Goodman, Dunlevy, Jim K. Crowe & repossessed when he was not in default. Atkinson, City, and Jack L. Law- Oklahoma separate In a cause of action the debtor ton, appellants. for sought extinguishing security the a decree Nelson, Park, Nelson, Caywood M. John in interest in that tractor. The verdict was Park, Chickasha, appellees. & for damages favor of the debtor for actual of $60,- punitive damages and for $843.74 ALA, OP Justice: Judgment rendered on the 000.00. was security verdict and the creditor’s interest dispositive The issue on certiorari repossessed in extin- tractor was supports the evidence an award of whether guished. Appeals affirmed Court a se- actual and where opinion. by summary Because the case repossessed collateral in the cured appeared in-depth to merit an examination in erroneous belief that the debtor was pressed error into the claims of for question in the default.1 We answer this review, granted joint certiorari on the we affirmative. petition of the creditor and recoverer. time separate transactions a short pur- of the Uniform apart Mr. and Mrs. Mitchell Section 9-503 Com [debtor] party credit. The allows a secured to use chased two farm tractors on mercial Code self-help repossession Company ac- in the of collateral Ford Motor Credit [creditor] in default.3 A secured quired the installment contracts on these when the debtor is agreement provided party provisions has invoked the vehicles.2 Each who § 1-208, approximately op- 12A which afford an four annual installments of O.S.1981 insecure, portion Property right Seller shall have the 1. We must decline to review that extinguished judgment Ford court’s which trial to declare all amounts due or to become due personalty. Company's Credit lien on the immediately payable Motor due and hereunder to be petition it- for certiorari does not address and Seller shall have all the and remedies peti- self to that error. Issues not raised in Party of a Secured under the Uniform Commer- given tion for writ of certiorari will not be Code, including right repossess cial Wade, Okl., Johnson v. consideration. Property wherever the same be found with [1982], right entry free ...” retail installment contract contains the 2. The provides pertinent in § 3. 12A O.S.1981 following paragraph: part: Buyer any payment, "In the event defaults in or agreed party has on "Unless otherwise secured comply any provisions here- fails to with right possession default the to take collat- of, Property ... or the Seller deems the in party may taking possession eral. In a secured confiscation, danger of misuse or or Seller oth- judicial process proceed without ...” reasonably erwise deems the indebtedness § 61, provides that the when 23 O.S.1981 meas- the debt at will to accelerate tion arise, damages for a tort of conversion is ure of must show proper conditions compensate in- the amount which will not exercised arbitrar- statutory power was jured party proximate- for all the detriment good-faith belief ily irresponsibly but loss, ly im- whether it could have payment was caused prospect of anticipated or not. The debtor was been paired.4 just hence not limited to a difference claimed at trial that The creditor of the tractor before its conversion value repossess made in an was its decision property, return. and after When the debtor good-faith belief that honest and then re- which has been converted default, (2) attempting to was value, stored, has a distinct one measure of in violation of the con the collateral sell use value for is the reasonable the state had moved from tract and wrongful deter- period detention as notifying the creditor. The debt- without *4 by the fair market rental value.6 mined competent proof show claim rested on or’s argues punitive damages The creditor default, (2) (1) in ing account was not improperly awarded because the ac- were approved had the sale the creditor representatives its were free from tions of (3) the party to a third and first tractor fraud, oppression malice. In the or alter- cognizant of the new debtor’s creditor native, punitive damages it asserts that the conflicting evidence has address. Where award was excessive.7 jury is presented to the and its verdict been evidence, it will by competent supported damages Punitive are allowable appeal.5 not be disturbed on there evidence of reckless and wan when of another’s complains that ton The creditor may intent inf of the cost of which malice and evil be court admitted evidence trial statute, proof by erred.8 The adduced the debtor renting tractor. The a substitute ordinarily provide: evidence. it is demurrer to the While § terms of 12A O.S.1981 1-208 4. jury inadmissible exhibits in the error to allow room, party providing or his succes- “A term that one prejudiced the creditor was not here per- may payment accelerate or sor in interest thereby judge since the trial limited actual dam- require additional col- or collateral or formance expenses ages to the cost of rental and incurred inse- ‘at will’ or 'when he deems lateral himself recovering the tractor. import in words of similar shall cure’ or power that he shall have to construed to mean good only believes that the so he in the U.C.C. does not § do prospect 7. 23 O.S.1981 9. While if faith payment performance damages, or is im- explicitly provide punitive § establishing good lack of paired. burden of damages permits punitive based party against power whom the faith is on the finding law. After a that there was a non-Code [Emphasis exercised." conversion, added]. has been may be awarded Quinn’s Commercial Code See also Uniform existing statutory and case law. See under Commentary Digest, and Law 1983 Cumulative Co., Yale, v. First Nat'l Bank & Trust Davidson 2, pp. Supp. and No. at S1-57-59 § 208[A][1] Okl., 1259, (20 U.S.C.Rep. 1 - P.2d 1261 [1977] 609 pp. at S9-317-321. § 9-503[A][7][c] 562). Okl., 700, Ittner, 418 P.2d 701 5. Vickers v. Brown, Okl., 67, Sunray DX Oil Co. 477 P.2d v. good-faith belief in default A creditor’s [1966]. [1970]; McCoy, Corporation v. 70-71 Okl., Oil Gulf judged by objective insecurity an will be or 948, [1966]; P.2d Dilworth v. Forti 416 952 standard, based on commercial reasonableness. 38, er, [1965]; Neun 405 P.2d 45 Fuller v. Gilmore, Security in Personal II Interests See Property, 317, [1956]; dorf, 320 see also 293 43.4, [1965]; U.Chi.L.R. 30 § Few, Mining Company & Garland Coal 666, 672 [1962-63]. 785, Cir.1959]; Wootan v. F.2d 790-791 [10th Shaw, 205 Okl. Tecumseh, 32 Thomas v. First Nat’l Bank addition, punitive The misconduct for which [1912], In Okl. 121 P. 23 O.S.1981 be exacted is characterized objects the fact that inadmissible creditor to "op culpability of go 9 in terms of defendant's § pression, crop to to the exhibits on loss were allowed malice, presumed judge fraud or actual jury during The trial room deliberation. construing [emphasis speculative ...” Case law crop added]. the evidence loss too found op- language recognizes that malicious recovery creditor’s to warrant and sustained the show, (1) among things: other lowed were for less than the amount of did tend to punitive damages.10 arriving default; (2) at had the debtor no note was damages required amount deter oth- to determine the bal- contacted the creditor jury may and punish, properly ers because he wanted to *5 agency allegations relationship. The were very effected repossession that be of the recoverer, request that the at the equipment constituted for that collateral creditor, possession the took of tractor obligations jury not then in The default. knowledge without the or consent of the presented could conclude from the evidence undisputed debtor. facts The showed only that the creditor not indifferent to trying that in the course of to locate the actions, consequences the of its also but tractor, employees the recoverer’s process that flawed work flow demon telephone two calls to the creditor—one to disregard a reckless for the strated ascertain procedure locating the for the long span during of its time debtors. serial on the tractor and number the other which the creditor was shown to have re to inform the creditor tractor it ignorant mained of salient facts with re available, was seeking was not and that spect repossession suggestive to its also is creditor, receiving the this informa extraordinary degree negligence of of that tion, knowingly directed the recoverer to easily regarded gross.9 which could as repossess wrong tractor. In opin argues ion, The creditor further these on facts are relevant of issue pro out of agency is relationship between portion injury inflicted. cannot to We and relied upon recoverer. Where facts agree. necessarily subject A is not agency verdict establish the existence of the are undisputed conflicting because actual al- reversal and no inferences 9.In supra; Mining Company v. covery pressive indifference to even reckless held that 143, 45 P.2d 121 390 P.2d Wootan v. Keener Oil & Gas intent disregard "gross negligence”, exemplary damages, of another’s "gross 486, may Shaw, consequences”, negligence”. [1935] Few, be inferred from [1964]; supra Co. v. rights, supra. and safety note sufficient Stewart, Garland Coal & Wootan v. Morgan must be "such as is “conscious of others” “complete the court v. 172 Okl. deemed for re- Shaw, Bates, 11. Cates 10. Cates v. App., 539 P.2d west Auto duct' or consequences' plies conduct equivalent [1975]; such entire want of care or recklessness of Sopkin as is the evinces to such Darland, Sales, Inc., Darland, ”. 1393, v. Premier equivalent n [evil] supra conscious indifference to Okl.App., intent” and [1975]; note 10 537 P.2d Pontiac, ‘positive Bush v. Mid at that it "im- 340. Inc., 336, miscon- Okl. therefrom, question I am authorized to state that Chief Jus- may be drawn joins me in agency exists is one of law tice DON BARNES with whether assuming that conflict- Even dissent. the court.12 drawn from these

ing could be inferences facts, instruction was at

undisputed argument harmless error.

most is that each

contractor and reeoverer damages for punitive

have been assessed if the recover- the other. Even

the acts of independent contrac- in fact an

er had been

tor, be of no complained error of would the two defend- This is so because

avail. In the Matter of the ESTATE OF Sam regarded joint tortfeasors would be as ants ZARROW, Deceased. severally and liable for jointly and hence damages.13 all RENBERG, Renberg, George Donald and Appeals opinion is with- The Court of Renberg Kaplan, Sherri Co-Executors judgment trial court’s drawn and the Dorothy Zarrow Ren of the Estate of affirmed. berg, Appellants, v. LAVENDER, SIMMS, V.C.J., DOO-

LIN, HARGRAVE, and KAU- WILSON ZARROW, Appellee. Jack GER, JJ., concur. No. 57999. HODGES, J.,

BARNES, C.J., and concur part. part and dissent Supreme of Oklahoma. Court Justice, HODGES, dissenting part: May majority part I dissent to that puni- the award of opinion which affirms Sept. As Corrected opinion damages. my the award tive *6 $60,000 and a remittitur should is excessive required. case where a defendant

This is not a property of

intentionally confiscated anoth- Here, plain- provocation.

er without their misfortune.

tiffs were the creators of obligation, their secured

They defaulted on and anxieties

thereby creating insecurities

which, reac- unfortunately, caused an over pro- in an effort to

tion the defendants defendants’ ad- collateral. While

tect their inefficiency may justify the

ministrative and wanton conclusion of reckless

jury’s rights, the de- plaintiffs’ rectify wrong attempt to their

fendants did weeks after

by returning the tractor two facts, an this state of

repossession. Given damages does for actual $843.71 $60,- punitive award of fully justify not Merritt, Corp., Company v. 13. Cities Service Oil 12. Keel v. Titan Construction 683 [1958]. ance notes of both into take account the financial condition of auction; (3) sell at the second the tractors the defendant.11 The award—for much sold at auction with the credi- tractor was ($400,000)— sought less than the amount purchase; acceptance tor’s was far from excessive when considered mailing the correct ad- possessed light of the facts adduced and of the credi- creditor, and dress of the debtor tor’s net worth. disclosed facts, though of all the salient never- aware repos- instructed the recoverer to theless Lastly, complains the creditor did sess a tractor it knew not stand as erroneously that the trial court instructed thought mistakenly collateral for the note jury relationship principal-agent that a to be in default. and existed between the creditor recoverer as a matter of law. This instruction is This, in the and other evidence challenged the recoverer is assert because record, internal indicates creditor’s independent ed to have contractor. been operations so inefficient that there were pleadings specifically While do not was both scant coordination and communi issue, state that this was an debtor met among employees. cation While some by alleging proving the burden facts payments in accepting on them were necessary to establish the existence contracts, busily others stallment directed

Case Details

Case Name: Mitchell v. Ford Motor Credit Co.
Court Name: Supreme Court of Oklahoma
Date Published: Apr 24, 1984
Citation: 688 P.2d 42
Docket Number: 57267
Court Abbreviation: Okla.
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