Finance & Guaranty Co. v. Defiance Motor Truck Co.
Decision Date | 01 February 1924 |
Docket Number | 111. |
Citation | 125 A. 585,145 Md. 94 |
Parties | FINANCE & GUARANTY CO. v. DEFIANCE MOTOR TRUCK CO. |
Court | Maryland Court of Appeals |
Appeal from Superior Court of Baltimore City; James P. Gorter Judge.
"To be officially reported."
Action by the Defiance Motor Truck Company against the Finance & Guaranty Company. Judgment for plaintiff, and defendant appeals. Affirmed.
Argued before BRISCOE, THOMAS, PATTISON, URNER, ADKINS, and OFFUTT JJ.
William Lentz, of Baltimore (France, McLanahan & Rouzer, of Baltimore, on the brief), for appellant.
Frank Gosnell, of Baltimore (Marbury, Gosnell & Williams and George Weems Williams, all of Baltimore, on the brief), for appellee.
The appeal in this case is from a judgment of the superior court of Baltimore City, in favor of the appellee, in an action of replevin brought by it against the appellant for the recovery of a motor truck, which it had sold under a conditional sales agreement to the Allegany Motor Company, which had sold it to one Whitacre under a similar agreement, which it assigned to the appellant.
The Defiance Motor Truck Company is an Ohio corporation engaged in the manufacture and sale of motor trucks, and on January 31, 1923, it sold the truck involved in this case to the Allegany Motor Company, a corporation, and a licensed automobile dealer with offices and showrooms in Cumberland engaged in the business of buying and selling automobiles and on the same day the vendor and the vendee executed a conditional sales agreement to secure the payment of a balance of $1,975.54, due on account of the purchase price of the truck, which was on January 31, 1921, recorded among the miscellaneous records of Allegany county. The agreement, which was duly acknowledged on behalf of the vendee, was in the following form:
The Allegany Motor Company bought the truck for resale, and when it secured possession of it, it was placed in its show or storeroom in Cumberland, and on March 12, 1921, it sold it to William F. Parsons, and the company took from him a conditional sales agreement to cover the unpaid balance of the purchase price, amounting to $2,361.33. It assigned that agreement to the appellant in this case, and later that company reassigned it to the Allegany Motor Company. Parsons defaulted in his payments on the truck and it came again into the possession of the Allegany Motor Company, which then sold it to John T. Whitacre for $2,645, of which $1,058 was paid in cash, and the balance secured by a conditional sales agreement which was likewise assigned to the appellant. Whitacre also defaulted in his payments and the appellant in April, 1922, took possession of the truck and thereafter sold it for $425. In September, 1922, the Defiance Motor Company in order to learn where the truck was, through its sales and service departments, addressed to the appellant the following two letters:
To these letters the appellee sent this reply:
Default having been made in payments of the balance covered by the conditional sales agreement between the Motor Company and the Defiance Motor Truck Company, the appellee demanded of the appellant that it return the truck. The appellant refused to comply with the demand on the ground that it had had no actual notice of the conditional sales agreement, and that as an innocent purchaser for value without notice it was not affected by any equities growing out of the relations between the Defiance Motor Truck Company and the Allegany Motor Company. The appellee then brought this suit against the appellant to secure possession of the truck, and, the verdict and judgment being against the defendant, it took this appeal.
The only exception found in the record relates to the court's rulings on the prayers, and it rests upon the proposition that the appellee, having no actual knowledge or notice of the conditional sales agreement between the appellee and the Allegany Motor Company, was not in any way bound or affected thereby. In support of that proposition it contends that regardless of any statute in force in this state relating to conditional sales agreements, it would be contrary to public policy to permit a manufacturer to retain a lien under such an agreement on a truck sold to a dealer who might resell it, because the existence of such a lien is inconsistent with...
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