Steve Sitton forged a check belonging to his brother, went to Nowlin’s Jewelry, and misrepresented that he had his brother’s authorization to make a purchase. He bought a gold ladies’ Rolex watch with a diamond bezel for $9,438.50. The next day, Sitton called Eddie Kotis, the owner of a used car dealership, and asked if he would be interested in buying the watch. Kotis had bought several used cars from Sitton over the years and had never had problems with him. Kotis expressed interest, so Sitton showed him the watch. Sitton explained that several months earlier he had sold his house and used the proceeds to buy the watch for his girlfriend. Kotis had a good general knowledge of the value of Rolex watches. He realized this one was in excellent condition. Kotis bought the watch for $3,550.

At some point on that same day, Kotis telephoned the jewelry store and spoke with Cherie Nowlin. He described the watch, and asked if the store had sold such an item within the past few months. Kotis at first refused to identify himself. Ms. Nowlin said that Sitton had bought the watch the day before. She did not have the payment information available and said she would call him back. When Nowlin called Kotis, she told him that payment had been by a check that had not yet cleared. Kotis told Nowlin that he did not have the watch and that he did not want it. Kotis refused to tell Nowlin how much Sitton was asking for the watch.

The bank dishonored the check, the state prosecuted Sitton for forgery and theft, and Nowlin sued to recover the watch.

Questions:

1. Was Kotis a bona fide purchaser entitled to retain the watch?

2. What title did Sitton obtain when he purchased the watch?

3. Kotis paid $3,550 for the watch; he clearly gave value. What evidence supports Kotis’s argument that he acted in good faith? 

4. What evidence supports Nowlin’s argument that Kotis did not act in good faith?