All Nite Garage, Inc. v. AAA TOWING, OF RENO

452 P.2d 902, 85 Nev. 193, 6 U.C.C. Rep. Serv. (West) 529, 1969 Nev. LEXIS 516
CourtNevada Supreme Court
DecidedApril 2, 1969
Docket5639
StatusPublished
Cited by10 cases

This text of 452 P.2d 902 (All Nite Garage, Inc. v. AAA TOWING, OF RENO) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
All Nite Garage, Inc. v. AAA TOWING, OF RENO, 452 P.2d 902, 85 Nev. 193, 6 U.C.C. Rep. Serv. (West) 529, 1969 Nev. LEXIS 516 (Neb. 1969).

Opinion

*194 OPINION

By the Court,

Bat jer, J.:

On June 1, 1967, the respondent filed its articles of incorporation with the Secretary of State of the State of Nevada, and entered into an agreement with Hershel Roaden individually and as the president of Marsh Tow Service, Inc., a Nevada corporation, doing business as Roaden’s Garage and Body Shop, hereinafter referred to as Marsh Towing Service, for the purchase of certain equipment, including a 1962 GMC tow *195 truck. The respondent also purchased the name Roaden’s Garage and Body Shop, and its use for a period of five years.

On June 9, 1967, the appellant filed a complaint alleging that Marsh Towing Service was indebted to it in the amount of $1,235, together with attorney fees. Prior to that date Kevin T. Shyne, the president of the respondent corporation had contacted the appellant and advised one of its officers that the respondent had bought “certain assets” from Marsh Towing Service. On the strength of an affidavit of attachment filed with the complaint a writ of attachment was issued and delivered to the sheriff. That writ was returned on June 20, 1967, entirely unsatisfied. In the meantime, counsel for the respondent notified counsel for the appellant that his client had purchased equipment from Marsh Towing Service and would proceed with a counteraction if an attempt was made to attach any of the purchased equipment. He also advised counsel for the appellant that he held $1,000 from Hershel Roaden, and offered that amount as full settlement of appellant’s claim. Counsel for the appellant acknowledged receipt of the letter of June 19, 1967, and rejected the $1,000 offer of settlement.

On June 23, 1967, the appellant caused another writ of attachment to be issued, and on July 5, 1967, the sheriff attached the 1962 GMC tow truck. The respondent, through its president, filed a verified claim to possession of the truck. Pursuant to the provisions of NRS 31.070(1) (2), 1 the appellant, through its president, furnished a third-party undertaking *196 and the tow truck was retained by the sheriff until after a hearing was held on July 27, 1967, at which time the trial court released it to the respondent as legal owner.

By motion, pursuant to NRS 31.070(2), respondent moved against the appellant for damages and attorney fees. On April 11, 1968, the trial court entered its findings of fact, conclusions of law and judgment and awarded the respondent damages in the amount of $973.82, and attorney fees in the amount of $750, together with interest and costs.

It is from that judgment that this appeal is taken upon the grounds that the respondent had “unclean hands” and should have been estopped from recovering damages and fees because of its violations of the laws in connection with the transfer of ownership and use of the 1962 GMC tow truck, and in particular: (1) That the respondent was in violation of the laws of the State of Nevada requiring the registration of motor vehicles after transfer of ownership; (2) that respondent violated the statutory requirement of filing notice of doing business under a fictitious or assumed name; and (3) that the conveyance of ownership from Marsh Towing Service, doing business as Roaden’s Garage and Body Shop, to the respondent, was in violation of the Uniform Commercial Code.

Although the trial court found that the actions of the appellant in causing the tow truck to be attached were wrongful, it nevertheless found that the respondent’s right to recover was predicated on NRS 31.070. In Cooper v. Liebert, 81 Nev. 341, 402 P.2d 989 (1965), this court said: “We hold that NRS 31.070 is a complete and valid remedy to third persons whose property has been attached, that the remedy therein provided is exclusive . . . .” The third-party undertaking, furnished pursuant to NRS 31.070 was executed by the appellant as a principal. Had the third-party undertaking not been posted with the sheriff it would have been mandatory for him to have released the tow truck pursuant to the provisions of NRS 31.070. In the undertaking, the appellant unconditionally agreed to indemnify the respondent against loss, liability, damages, costs and counsel fees, sustained by reason of the seizing, taking and withholding of the tow truck in an amount not to exceed the sum of $7,353.40.

The appellant’s liability growing out of the third-party undertaking was not only contractual, but it was mandatory under the statute. A wrongful attachment was not a condition precedent to recovery by the respondent. Only if the appellant had been able to show a bar by estoppel would the respondent have *197 been precluded from recovery. In an attempt to show grounds for estoppel the appellant argues that it was misled by acts of the respondent which it contends were unlawful, and that because of such misleading behavior, the 1962 GMC tow truck was attached on July 5, 1967, and held until July 28, 1967, when it was released by order of the trial court.

1. The trial court found that the respondent was not in violation of the law on July 5, 1967, and that the appellant was not misled concerning the ownership of the tow truck on the date of the attachment. We agree.

The appellant simply misinterpreted the meaning of the pertinent statutes and case law, and in reliance on those misinterpretations caused the tow truck to be held from July 5, 1967 until July 28, 1967. The respondent was damaged when those misinterpretations resulted in the loss of the use of its equipment. The appellant proceeded at its peril. NRS 31.070 was enacted to protect a third-party from this type of conduct.

In the case of Peterson v. Wiesner, 62 Nev. 184, 146 P.2d 789 (1944), this court said: “If appellant thought the property belonged to the Worthys, that would not relieve him of liability for causing it to be attached.”

The letter dated June 19, 1967 from respondent’s counsel to appellant’s counsel, was cautionary in nature, and indicated the respondent’s ownership of the tow truck. By his affidavit, counsel for the appellant admitted that on July 5, 1967, he knew that the respondent claimed ownership of the tow truck. Nevertheless, even after a formal third-party claim was filed, the appellant apparently relying upon a misinterpretation of the law caused the tow truck to continue to be held.

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Bluebook (online)
452 P.2d 902, 85 Nev. 193, 6 U.C.C. Rep. Serv. (West) 529, 1969 Nev. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-nite-garage-inc-v-aaa-towing-of-reno-nev-1969.