Murdock Acceptance Corp. v. Woodham

Facts

Parks Auto Sales was owned and operated by T.C. Parks, husband of Mrs. Myrtle W. Parks. A number of 'Statement of Trust Receipt Financing' were filed each year consecutively from 1961 through 1964. Each was signed by Murdock Acceptance Corporation, as 'entruster' and by Parks Auto Sales by T.C. Parks as 'trustee.' Woodham (P), obtained a judgment against Parks It was recorded September 15, 1964. On December 29, 1964, another financing statement was executed by Murdock and T.C. Parks and filed of record January 7, 1965. This instrument was indexed under Murdock's name rather than Parks'. Mr. Parks died intestate July 11, 1965, and no administration was had on his estate. Mrs. Parks, without any change in the appearance of the business, took possession and control of 'Parks Auto Sales,' and converted all property to her own use, and operated the business under the same name, even though there was no administration of the estate of T.C. Parks, sole owner of the auto agency. An attorney in fact, Adelyn W. Farr, executed a trust receipt on September 28, 1965, naming Murdock as 'entruster' and Parks Auto Sales as 'trustee.' This trust receipt covered three of the automobiles upon which levy was made. A similar instrument was executed October 23, 1965, which included the other three automobiles involved in this controversy. On December 14, 1965, a writ of execution on Woodham's judgment was issued. At nine o'clock the following morning, a statement of financing was filed naming Murdock as entruster and 'Parks Auto Sales by Mrs. Myrtle W. Parks' as trustee. At eleven o'clock that same morning, the sheriff of Newton County, acting under the writ of execution, advised Mrs. Parks that he was making levy of execution on the six automobiles involved. The trial court's judgment was in favor of the judgment creditor, Mrs. Woodham (P) and Murdock (D) appealed. 

Issues

Rule of Law

Holding and Decision

Legal Analysis

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