Campbell v. Pollack

221 A.2d 615, 101 R.I. 223, 3 U.C.C. Rep. Serv. (West) 703, 1966 R.I. LEXIS 377
CourtSupreme Court of Rhode Island
DecidedJuly 21, 1966
DocketEx. Nos. 10836, 10837
StatusPublished
Cited by15 cases

This text of 221 A.2d 615 (Campbell v. Pollack) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell v. Pollack, 221 A.2d 615, 101 R.I. 223, 3 U.C.C. Rep. Serv. (West) 703, 1966 R.I. LEXIS 377 (R.I. 1966).

Opinion

*225 Kelleher, J.

These two actions in assumpsit were consolidated and heard 'by a justice of the superior court sitting without a jury. They are before us solely on the defendants’ exceptions to the decision of the trial justice awarding the plaintiff in each case the sum of $8,240 plus interest.

The record shows that in 1963 and for some time prior thereto Providence Auto Magic Car Wash, Inc., a Rhode Island corporation, hereafter called Magic Car Wash, operated an automatic car wash, SO' called, on premises located on North Main street in Providence. Magic Car Wash was the assignee of a lessee’s interest in an instrument covering these premises dated March 30, 1955. The original lessee had erected on this property a cinder block and frame 'building which housed the car wash. The lease provided that on its termination all buildings, structures and improvements would become the property of the lessors. Another provision of this lease stated that the lessors had a first and prior lien on all buildings, structures and improvements to secure payments of any obligations under the lease.

On April 1, 1961, Magic Car Wash executed and delivered to defendant Bilotti a chattel mortgage in the amount of $12,000 which ¡by its terms purportedly covered the cinder block building and certain items of personal property. The mortgage contained a covenant that the mortgaged property was free and clear from any encumbrances “except the interest of lessors under lease dated March 30, 1955.”

In 1963 apparently the magic disappeared from the car-washing business because Magic Car Wash went into receivership. The superior court by a decree dated De *226 cember 9, 1963 entered in the receivership proceedings, authorized defendant Bilotti to foreclose his chattel mortgage and he was also' given leave to become the purchaser at any foreclosure sale.

The defendant Bilotti then employed defendant Pollack as the auctioneer to conduct the mortgagee’s sale. Pollack advertised in the Providence Journal the date, time and place of sale.

The auction with Pollack in charge was held on February 18, 1964. Attorneys representing the lessors appeared at the sale and both informed the auctioneer that anything being sold at the auction sale was subject to' any interests that the lessors might have in the property pursuant to terms of the lease. An announcement to this effect was made by the auctioneer prior to the sale. The mortgaged property was bid in by an attorney representing defendant Bilotti for $6,500.

About a week after the foreclosure sale plaintiff contacted defendant Pollack and began negotiations for the sale of the car wash. Campbell is a resident of Pawtucket, Rhode Island, where he operates a garage in which he repairs automobiles. He testified that he met Pollack on the premises of the car wash and was told by him that everything within the four walls with the exception of a soft-drink machine was included in the sale.

The sale price was $8,000 and in addition to this the sum of $240 was added for the Rhode Island sales tax.

On March 10, 1964, Pollack delivered a bill of sale to Campbell. It read “'Contents of Magic Car Wash * * * Price $8000.00 Sales Tax $240.” On this date Campbell paid Pollack $1,000. Campbell then began preparations incidental to removing the car wash to his garage in Pawtucket. The bill of sale originally called for the removal of the contents of the car wash m> later than “3/31/64.” Because Campbell was experiencing difficulty *227 making the necessary arrangements for the move to Pawtucket, the figures 3 and 31 were scratched out of the bill of sale. He made two additional payments to Pollack. On March 16, 1964, he paid an additional $1,000 and on March 19, 1964, he made the final payment of $6,240. Upon the receipt of the final payment, Pollack delivered the keys to the premises to plaintiff. From this date until early April, plaintiff visited the premises about half a dozen times and on several occasions removed certain small articles to his garage in Pawtucket.

On April 9, 1964, Mr. 'Campbell’s son went to the car wash with a moving man so that an estimate could be obtained as to the cost of moving the equipment. Upon his arrival at the North Main street location, Campbell’s son was met by an attorney who in behalf of the lessors informed him that pursuant to the terms of the lease, the boiler, hot-air blowers and fluorescent lighting could not be removed from the premises. The attorney also told plaintiff’s son that it was doubtful whether the conveyor chain, which moves a ear through the washing process, could be removed. This chain was embedded in the floor of the building.

Thereupon plaintiff engaged the services of an attorney who on April 9, 1964, sent a letter to defendant Pollack rescinding the sale and demanding the return of the purchase price. The letter stated that plaintiff was rescinding the sale because, among other things, Pollack could not deliver the boiler, lights and the blowers. The plaintiff then returned to the premises certain small items which he had taken to Pawtucket.

This litigation then followed. It was stipulated at the trial that Pollack was acting as Bilotti’s agent and all payments made to Pollack were delivered to Bilotti.

The defendants have briefed only their exception to 'the decision of the court in its award for plaintiff in each

*228 case. This being so, all of defendants’ other exceptions not being briefed or argued are deemed to be waived. Dolman v. Saltzman, 100 R. I. 327, 215 A.2d 232.

The defendants’ first contention is that the trial justice should have classified the boiler, hot-air blowers and lights as equipment and not as improvements. This being the true nature of these items, they contend, title to- them did not pass to the lessors pursuant to the terms of the lease. Accordingly, they say, the bill of sale conveyed to plaintiff good title to these specific items.

The trial justice in his decision found that the boiler, blowers and light fixtures which were chattels before their annexation had become an integral part of the building. The boiler was used to heat the premises. In his decision the trial justice likened the blowers to radiators. He stated that they were quite necessary in distributing the heat throughout the premises. He found, therefore, that all of these items should be classified as improvements. After an examination of the transcript and the superior court’s decision in this ease^ we are satisfied that these items were properly classified as improvements and not equipment under the provisions of the lease.

The term “improvements” as used in the instant lease means a chattel which by the manner of affixation to the real estate is so changed in character that it cannot be removed without the consent of the landlord.

In support of this contention that the property in question was equipment, defendants directed our attention to the case of 839-41 Market Street Corp. v. Darling Stores Corp., 355 Pa.

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221 A.2d 615, 101 R.I. 223, 3 U.C.C. Rep. Serv. (West) 703, 1966 R.I. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-pollack-ri-1966.