Court Opinion

ID: 9667450
Source: CourtListenerOpinion
Date Created: 2023-08-24 01:45:50.269857+00
Date Added: 2024-06-11T18:15:37.868211
License: Public Domain

MORGAN, Justice
(dissenting).
I dissent.
I disagree with the trial court decision which imposed liability under one theory and I disagree with the majority decision which imposes liability under an entirely different theory.
Under the findings of fact and conclusions of law, the trial court’s theory of liability is clearly predicated on the failure of the bank to secure the title to the vehicle in question when the check given in payment thereof was cashed. In essence, Findings of Fact No. 8 noted that Bateman endorsed the check, No. 9 found that Bate-man had received two checks in return which the record shows were divided one-half payable to himself and one-half to his alleged sister Peggy, and No. 10, crucial to me, is that the bank did not require the certificate of title to be attached to the check when cashed. Based on these findings, the trial cóurt concluded that the bank did not follow community standards for handling the purchase of cars and the ultimate conclusion that Dykstra is entitled to recover because of bank’s negligence. While I have no disagreement with the trial court’s findings as far as they go, I would hold that they do not support the conclusion of law that the bank was negligent in this case for failure to follow community standards.
First of all, we have to realize that Dyks-tra was dealing with a con artist who drew *865the so-called agreement with Dykstra and signed it for himself and on behalf of his sister. As the trial court correctly notes, the bank was not a party to the original agreement but later had knowledge of its terms. As I read this so-called agreement, community standards for handling purchase of cars went out the window since the agreement specifically provided payment as of the date thereof and further and most important, provided: “I Jim Bateman will have title mailed in ten days to Vernon Dykstra.” How can the bank be faulted under that agreement? Further, the agreement is so deficient in that it merely identified a “1977 Eldorado” without further identification as to model, motor or identification number. Any bank trying to enforce the usual community standards would have had difficulty knowing that the title tendered was the correct one as I assume that more than one 1977 Eldorado was built in 1977.
To the trial court’s theory of liability, the majority opinion apparently adds an additional theory of improper endorsement which the majority terms forgery. The majority opinion preserves that theory for appellate review through the artifice of referring to the trial court’s memorandum opinion. The majority opinion pays lip service to our long standing rule that the memorandum opinion is not considered on review and that our review is limited to the trial court’s findings of fact and conclusions of law. Christiansen v. Strand, 82 S.D. 416, 147 N.W.2d 415 (1966); Connelly v. Sherwood, 268 N.W.2d 140 (S.D.1978). The majority then blatantly ignores this rule. I would hold that the issue of the endorsement is not properly before us; but even assuming that it were, it adds nothing to the trial court’s decision inasmuch as the impropriety of the endorsement did not proximately cause any injury to Dykstra. Dykstra’s loss was not occasioned by charging his account with $8900, but rather, his loss was solely caused by the failure of Bateman to produce the title for the car.
The only case law cited by the majority in support of their opinion is Flaherty v. Bank of Kimball, 75 S.D. 468, 68 N.W.2d 105 (1955). In Flaherty, the bank was sued for charging depositor’s account with excess sums of money because the payees had increased the amount payable on the checks. Here, in contrast, the bank paid out by cashier’s checks, as previously noted, exactly the amount for which the check was drawn by. Dykstra and exactly the amount that the agreement stated Dykstra had that day paid to Bateman.
The effect of the trial court’s opinion and the majority opinion is to make the bank insurer against Dykstra’s loss which was based on his own ineptitude or cupidity. Granted, Dykstra was dealing with a con artist. The record, however, indicates that he is a responsible business executive who should have protected himself by verifying some of the details of ownership. He was not dealing with a reputable dealer, but he apparently did nothing further than look under the hood, kick the tires, and road-test the car.
I would reverse the decision of the trial court and remand with instructions to enter judgment in favor of the bank.
I am authorized to state that Justice WOLLMAN joins in this dissent.