Charles Evans BMW, Inc. v. Williams

Brief Fact Summary.

Charles Evans BMW appealed a judgment requiring them to return a vehicle purchased from a fraudulent seller.

Synopsis of Rule of Law.

A party is a good-faith purchaser if the party unknowingly purchases goods from a counterfeit seller.

Facts.

Williams purchased a car from Hodge and Hodge sold the Car to Charles Evans BMW. When Williams determined the check from Hodge to be counterfeit, and the local police required Charles Evans BMW to refund the purchase price of the vehicle and return the vehicle to Williams. Charles Evans BMW initiated action against Williams and the trial court granted summary judgment to Williams.

Issue.

Whether a party qualifies as a good-faith purchaser if the party unknowingly purchases goods from a counterfeit seller?

Held.

Yes. Charles Evans BMW is a good faith purchaser and retains title for the vehicle because there is no evidence that Charles Evans BMW acted fraudulently in purchasing the vehicle. The judgment of the trial court is reversed.

Discussion.

Williams voluntarily delivered the car to Hodge, so Hodge had voidable, rather than void title. Hodge therefore had the power to transfer good title to Charles Evans BMW.