Kotis v. Nowlin Jewelry, Inc.

Steve Sitton fraudulently obtained a gold Rolex from Nowlin Jewelry (plaintiff) by forging a check for its $9,438.50 purchase price, then sold it to Eddie Kotis (defendant), a used car dealer, for $3,550. Kotis called Nowlin's to ask whether Sitton had financed the watch, but declined to identify himself, wouldn't reveal Sitton's asking price, falsely claimed not to have or want the watch, and later refused to speak with Nowlin's president after learning Sitton's check bounced, referring him instead to Kotis's attorney. Sitton was indicted for forgery and theft, and Nowlin's sought a declaratory judgment establishing sole ownership of the watch; Kotis counterclaimed as a good-faith purchaser. The trial court found for Nowlin's, including that Sitton hadn't obtained the watch through a "transaction of purchase" required for good title to pass under the relevant statute. Kotis appealed.