Opinion ID: 1607852
Heading Depth: 1
Heading Rank: 3

Heading: Frank Morris Buick

Text: Dr. Sherrill contends that Frank Morris Pontiac-Buick-GMC, Inc. is obligated to return to him the sum of $4,860.61 allegedly paid by mistake. The trial court held that Morris was entitled to keep the $4,860.61 as payment in full for the Skylark, and further held that Morris had the duty to transfer title to Dr. Sherrill within a reasonable time. In Wood Chevrolet Co. v. Bank of the Southeast, 352 So.2d 1350 (Ala.1977), a prior case involving the self-same UMA fleet discount operation, we held that retention of the Manufacturer's Statement of Origin by the seller does not evidence a clear intention to retain title. Rather, we held that title passes when the car is delivered to the individual owners. Thus, Dr. Sherrill obtained title to the Skylark upon its delivery to him, and was under no obligation to pay $4,860.61 to Morris in order to receive title or retain possession. The evidence reveals that Morris told Dr. Sherrill he had the option either to pay it $4,860.61, return the car or have the car taken from him through legal action. Dr. Sherrill paid under the mistaken belief that he was indebted to Morris for the price of the car and that he must pay Morris to retain possession and obtain title. In Wood Chevrolet Co. v. Bank of Southeast, supra , the dealer asserted that the individual owners were principals and UMA was agent, and because the principals retained the automobiles, they were liable for payment. We held that the individual owners did not exercise control over the dealings between UMA and the automobile dealer; UMA sought out the relationship with the car dealer, and the dealer looked to UMA for payment. The individual owner was held not liable for the debt owed by UMA to the dealer. The principle of unjust enrichment permits recovery of money paid to the defendant by the plaintiff under mistake or fraud. Birmingham Broadcasting Co. v. Bell, 259 Ala. 656, 68 So.2d 314 (1953); Roney v. Commercial Union Fire Ins. Co., 225 Ala. 367, 143 So. 571 (1932). This is the essence of the theories of unjust enrichment or of money had and received. Foshee v. General Telephone Co. of Southeast, 295 Ala. 70, 322 So.2d 715 (1975). Moreover, one who receives payment made under mistake by the payor is not relieved of liability simply because the payor could have discovered the facts but was not diligent in doing so. Dudley v. Whatley, 244 Ala. 508, 14 So.2d 141 (1943). Dr. Sherrill, having paid under the mistaken belief, in fact and in law, that he was indebted to Morris, is entitled to the return of the $4,860.61 paid Morris. Morris argues that Dr. Sherrill's agreement to pay, in return for being permitted to keep the car, is a new contract binding the parties. We do not agree. In reality, Dr. Sherrill had both possession and title. Morris' claim for payment is against UMA, not Dr. Sherrill. There was no consideration for Dr. Sherrill's agreement to pay, and thus no contract. For the foregoing reason, this cause is due to be reversed and remanded as to appellee Frank Morris Pontiac-Buick-GMC, Inc., but affirmed as to appellees Bank of the Southeast and First Alabama Bank. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED. FAULKNER, ALMON and EMBRY, JJ., concur. TORBERT, C. J., concurs specially.