Mercantile Acceptance Corp. v. Globe Indemnity Co.

Globe Indemnity Company appeals from a judgment in favor of Mercantile Acceptance Company in an action to recover on a statutory bond issued by Globe to W. C. Jones, doing business as W. C. Jones Auto Sales.

The action went to trial on two different causes of action, each based on fraud, against Globe alone as the default of Jones had been entered previously.

Before discussing the contentions made by appellant, we shall give a brief summary of the evidence, bearing in mind the familiar rule that the evidence and all inferences that may be reasonably deduced therefrom must be viewed in the light most favorable to the respondent and that conflicts in the testimony must be disregarded.

Jones was a used car dealer. Mercantile Acceptance Corporation is and was an automobile finance company. On April 30, 1958, Jones “floored” with Mercantile Acceptance a 1956 Ford sedan which belonged to one Martinez. He delivered the ownership certificate which was unsigned and signed a trust receipt and promissory note. In return Mercantile issued a draft to Jones which he endorsed and turned over to Mercantile to be applied on his account. Martinez testified that he had loaned the car to Jones but…