Budget Plan, Inc. v. Sterling A. Orr, Inc.

10 Mass. App. Dec. 101

This text of 10 Mass. App. Dec. 101 (Budget Plan, Inc. v. Sterling A. Orr, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Budget Plan, Inc. v. Sterling A. Orr, Inc., 10 Mass. App. Dec. 101 (Mass. Ct. App. 1955).

Opinion

Riley, P. J.

In this action of replevin the plaintiffs [102]*102seek to recover an automobile sold by the plaintiff O’Meara Motors, Inc. on an alleged conditional sales contract to one Harry J. Smith of Chicopee, Massachusetts which alleged contract was later assigned to the plaintiff the Budget Plan, Inc. and which was in the possession of the defendant at the time of replevin by the plaintiffs.

The defendant’s answer is a general denial and a particular denial that the plaintiff had title or the right to possession of the property replevied, and further that the conditional sales agreement upon which the plaintiff bases its right in this action was not duly executed, acknowledged or recorded in accordance with the law and is therefore void and unenforceable as to the defendant.

At the trial before Ehrlich, J. there was evidence tending to show: that the plaintiff O’Meara Motors Inc. on or about June 7, 1952 was the owner of the automobile replevied from the defendant in this action, a Ford car with motor number B2SR 113393; that on June 7, 1952 O’Meara Motors Inc., in its place of business at Hartford, in the State of Connecticut, sold to Harry J. Smith, a Massachusetts resident, the automobile replevied in this action; that Harry J. Smith executed an agreement dated June 7, 1952, plaintiffs’ exhibit 1; that said agreement was executed and delivered in Connecticut; that the automobile replevied in this action was delivered to Harry J. Smith at the place of business of O’Meara Motors Inc. in Hartford, Connecticut; that on or about June 7, 1952 plaintiff O’Meara Motors Inc. sold and assigned for a fair and valuable consideration to plaintiff The Budget Plan, Inc. the aforesaid alleged contract of conditional sale herein referred to; that on March 20, 1933 the alleged contract of conditional sale was in default and that the balance unpaid at that time was $1796.54; that on the face of the aforesaid contract there now appears a stamp with a date of April 16, 1953 indicating a payment to The Budget Plan, Inc. of the aforesaid contract [103]*103in full; that the aforesaid stamp was affixed in error and not as a result of payment by the original vendee; that there was an arrangement on April 16, 1953 between the plaintiffs by which the plaintiff O’Meara Motors Inc. paid over the sum of $1600 to plaintiff The Budget Plan, Inc. with the understanding that if the right to proceed to collection or repossession in the plaintiff The Budget Plan, Inc. were attacked that the parties were to revert to their positions as if the $1600 had not been paid; that Harry J. Smith sold the aforesaid automobile to one Gilbert J. Kushnet, a used car dealer in Springfield, in October or November, 1932; that late in 1952 Gilbert J. Kushnet sold the aforesaid automobile to one Giannini, also of Springfield; that Giannini sold the aforesaid automobile to defendant; that defendant was an innocent purchaser without notice of any arrangement between the original vendee and either of the plaintiffs; that said automobile was replevied from defendant on October 24, 1953; that plaintiffs’ expenses in connection with the replevin suit and taking possession of the automobile originally sold to Harry J. Smith and replevied from defendant were $87.75; and that on November j, 1953 Gilbert J. Kushnet paid to defendant $1700 for an assignment of defendant’s rights in and to the automobile replevied in this action.

Both parties introduced Chapters 310 and 311 of the General Statutes of Connecticut regarding Sales of Personal Property on Condition and Retail Installment Sales Financing, respectively.

The plaintiffs seasonably filed the following Requests for Rulings:

1. If plaintiffs’, Connecticut corporations, original contract of conditional sale of replevied article, in Connecticut, was in accordance with the laws of that state, the contract and plaintiffs’ security right were established thereby and follow' the chattel into Massachusetts. Esson v. Tarbell, 9 Cush. 407, 413.
2. Plaintiffs are entitled to maintain and enforce in this [104]*104Commonwealth the title rights retained by them according to the Lex Loci Contractus. Langworthy v. Little, 12 Cush. 109, 111.
3. Whether plaintiffs’ rights are determined strictly by the Lex Loci Contractus, or by the situs of the automobile at the time plaintiffs entered into the original contract of conditional sale, the validity of the contract and the retention of security title is in accordance with the law of Connecticut. Jewett 01. Keystone Driller Company, 282 Mass. 469, 475, 479, 485.
4. Plaintiffs could not lose their rights in Massachusetts under a conditional sale made while the automobile, which was the subject of the right, was in Connecticut, merely because a Massachusetts vendor would not retain title if the same contract were written in Massachusetts. Restatement Conflict of Laws, §277a.
5. Plaintiffs’ interest in the chattel automobile sold by a conditional sales contract and delivered in Connecticut, in accordance with the laws thereof, is recognized in Massachusetts. Restatement Conflict of Laws, §§272 and 273. Wiliiston on Contracts, §339.
6. The original conditional sales contract relied on by plaintiffs, concerning the chattel replevied in this action, was drawn and executed in accordance with Connecticut lawn General Laws of Connecticut, 1949 edition as amended, Chapter 311, §6699.
7. The signature of the purchaser alone on the original contract of conditional sale concerning the automobile replevied in this action was sufficient under Connecticut law. National Cash Register v. Lesko, 77 Conn. 276, 278. Commercial Credit Corp. v. Carlson, 114 Conn. 514, 515.
8. The provisions of Connecticut law for acknowledgment and recording of conditional sales contracts do not apply where the conditional vendee is not a resident of the State of Connecticut, General Laws of Connecticut, 1949 edition as amended, Chapter 310, Sections 6692 and 6693, Massachusetts General Law's, Chapter 255, Section 1. Langworthy v. Little, 12 Cush. 109, 111.
9. The operation of the recording provisions of Section 6692 is restricted to conditional vendees or persons or corporations within the jurisdiction of the State of Connecticut. General Laws of Connecticut, 1949 edition as amended, Chapter 310, §6692; Legislative Power, Words and Phrases, Volume 24, Page 663.
[105]*105IO. The acknowledgment and recording provisions of the Connecticut law under §6692 above cited, are for the protection and government of the citizens of Connecticut. Words and Phrases, Volume 40, Statute Law.
3i. “It would seem that even unrecorded foreign contracts, invalid where made as against third persons, might be held valid in Massachusetts as against third persons whose rights accrued while the property was in Massachusetts, and who are therefore not protected against secret reservations of title.” C. C. H. Conditional Sales and Chattel Mortgage Reports, Volume 1, Page 7416, paragraph 175.
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Bluebook (online)
10 Mass. App. Dec. 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/budget-plan-inc-v-sterling-a-orr-inc-massdistctapp-1955.