## Facts

- Mrs. Ballard owned a Corvette that had been substantially damaged in an accident and kept at her home.
- Without Ballard’s knowledge or consent, her son, Tyrone, removed the remaining hull of the Corvette and sold it.
- Tyrone sold the hull to George Martin, who did not know Tyrone lacked authority or good title to transfer the vehicle.
- Johnny Wetzel bought the hull from Martin for $900.
- At the time Wetzel obtained it, the Corvette was essentially a “mere hull.”
- Wetzel spent about 100 hours of labor and roughly $5,000 in parts and expenses restoring the vehicle.
- After restoration, the Corvette’s market value was approximately $7,950.
- Ballard later located the restored Corvette and sued Wetzel to recover possession, claiming her ownership was superior because the hull had been taken and sold without authorization.
- After a bench trial, the circuit court found Wetzel was a good-faith purchaser for value and that title to the restored vehicle vested in him by accession. Ballard appealed.

## Issues

1. Whether the evidence preponderated against the trial court’s finding that Wetzel was a good-faith purchaser for value without notice of Ballard’s claim or a defect in title.
2. Whether, given Wetzel’s good-faith purchase and substantial restoration work, the doctrine of accession vested ownership of the restored Corvette in Wetzel rather than Ballard.

## Decision

- The Court of Appeals affirmed the judgment for Wetzel and remanded.
- Because the case was tried without a jury, the court reviewed the record de novo with a presumption of correctness as to factual findings, unless the evidence preponderated otherwise.
- The court concluded the evidence did not preponderate against the trial court’s determinations.
- The court agreed that Wetzel qualified as a good-faith purchaser for value under the statutory definitions and the proof at trial.
- The court upheld the trial court’s conclusion that, once restored, the Corvette became Wetzel’s property by accession.
- The court noted Ballard’s claim, if any, was properly pursued against her son, who caused the loss.

## Legal Principles

- In a bench trial, appellate review is de novo on the record with a presumption that the trial court’s factual findings are correct unless the evidence preponderates otherwise. (Tenn. R. App. P. 13(d))
- Under the UCC as adopted in Tennessee, “purchase” includes taking by sale and other voluntary transactions creating an interest in property. (Tenn. Code Ann. § 47-1-201(32))
- “Good faith” means “honesty in fact in the conduct or transaction concerned.” (Tenn. Code Ann. § 47-1-201(19))
- A buyer is not a good-faith purchaser if the buyer has notice of facts that would put a reasonably prudent person on inquiry as to another’s claim or a defect in title.
- A “good faith purchaser for value” is one who gives sufficient consideration and is honest in the transaction.
- Under the common-law doctrine of accession, when a good-faith possessor substantially transforms property or adds labor and materials that significantly increase its value, title to the improved item may vest in the improver, leaving the original owner to seek recovery from the wrongdoer responsible for the unauthorized transfer.

## Conclusion

The Court of Appeals affirmed the finding that Wetzel bought the Corvette hull for value without notice of Ballard’s ownership claim and, after investing substantial labor and expense to restore what was essentially a hull, acquired title to the restored vehicle by accession; Ballard’s remedy lay against her son, not the innocent purchaser-restorer.


Ballard v. Wetzel, 1997 Tenn. App. LEXIS 699 (Oct. 16, 1997)