Century Insurance v. Glidden Buick Corp.

174 Misc. 149, 20 N.Y.S.2d 108, 1940 N.Y. Misc. LEXIS 1770
CourtCity of New York Municipal Court
DecidedMay 17, 1940
StatusPublished
Cited by1 cases

This text of 174 Misc. 149 (Century Insurance v. Glidden Buick Corp.) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Century Insurance v. Glidden Buick Corp., 174 Misc. 149, 20 N.Y.S.2d 108, 1940 N.Y. Misc. LEXIS 1770 (N.Y. Super. Ct. 1940).

Opinion

Di Pirro, J.

This is an action for damages based on an alleged conversion by the defendant of a used automobile upon which plaintiff’s assignor claims to have had a prior chattel mortgage of $300. Plaintiff asks that the lien of its mortgage be enforced and for damages for the taking of the chattel in violation thereof.

The essential facts of the case are not in dispute. One John Petrone, the owner of the automobile which is the subject-matter of this action, executed a promissory note and chattel mortgage thereon to plaintiff’s assignor in consideration of a loan made to him in the sum of $300. It is conceded that the execution of the mortgage took place at the office of plaintiff’s assignor, located in New York county, at which time the automobile was placed at the street curb outside of the office where Petrone had brought it for inspection.

The mortgage was duly recorded in the office of the register of Bronx county on the morning of the following day, June 10, 1937. It has been agreed that this mortgage, or a copy thereof, was never filed in the office of the register of New York county. Some time thereafter the promissory note and chattel mortgage were assigned to the plaintiff, who thereupon became subrogated to all of the rights of its assignor.

Prior to said assignment and on or about July 24, 1937, Petrone traded in this car to the defendant as part consideration on the purchase price of another automobile, which, for the purpose of this opinion, shall be designated as a new automobile. The used car was thereafter sold by the defendant for the sum of $350.

At the time of the trade-in Petrone signed a “ Used Car Contract,” in which, after a description of the used car is given, there appears the representation “ of which I am the owner, free and clear of all encumbrance.” Acting upon this in apparent good faith, delivery of the new automobile was made to him by the defendant. There is no claim made by the defendant either in the pleading or in the evidence that any independent search was made or instituted by them at the time of the transaction in any county of the city of New York for existing liens or mortgages.

The contract signed by Petrone and the inventory card maintained by the defendant, both of which are marked in evidence, unmistakably shows Petrone’s residence to be in the Bronx. This [151]*151residence also appears on the registration certificate of the used car which was issued by the State Bureau of Motor Vehicles to Petrone and transferred by him to the defendant, on July 29, 1937. Again on the certificate of sale of the new car, which was filed by the defendant as dealer on July 29, 1937, the address of the vendee thereof is similarly given.

The evidence is, therefore, conclusive that the defendant should or must have been aware at all times during the above transaction of the fact that Petrone was a resident of Bronx county.

It is now defendant’s contention that by virtue of the fact that Petrone brought his car to the Manhattan office of plaintiff’s assignor for their inspection at the time of the loan, it was incumbent upon said assignor, under the provisions of section 232 of the Lien Law, to file the chattel mortgage executed by Petrone, or a true copy thereof, in the office of the register of New York county in addition to the Bronx, and that their failure so to do is a bar to this suit. The provisions of the Lien Law which are pertinent hereto are sections 230 and 232. Section 230 states that a chattel mortgage “ is absolutely void * * * as against subsequent purchasers * * * in good faith, unless the mortgage, or a true copy thereof is filed as directed_in this article.” Section 232 provides: If the chattels mortgaged are in the city of New York at the time of the execution of the mortgage, the mortgage or a true copy thereof must be filed in the county where the mortgagor alleges to reside at the time of the execution of the mortgage, and in the county where the property is situated.” The defendant contends and cites in support thereof that “ In order to maintain the validity of a chattel mortgage as against creditors and subsequent purchasers and mortgagees in good faith, there must be a strict and rigid observance of the statutory requirements.” (Industrial Loan Assn. v. Saul, 34 Misc. 188.) It is elementary, however, that the court is not precluded from inquiring into what was reasonably the intent of the Legislature.

The rule has been laid down that in construing statutes effect must be given to the evident intention of the Legislature, and that meaning is to be adopted which prevents unreasonableness and inconsistency, and which promotes in the fullest measure the appaient policy and object of the Legislature. (Matter of Stockwell, 210 App. Div. 753; People ex rel. Babcock Co. v. Law, 209 id. 526.)

There can be no doubt but that the situation here presented is representative of scores of similar transactions each business day, and the interpretation to be given to the statute in question becomes commercially significant.

[152]*152No authority pertaining directly to the facts at bar has been produced by either side and the paucity of cases even remotely bearing thereon is striking.

Conceding that the provisions of the statute were complied with in so far as it required the filing of the mortgage in the county wherein the mortgagor resided, the question is presented as to the significance to be ascribed to the additional filing requirement in the county where the property is situated.”

The stated object of the enactment of the statutes governing the filing of chattel mortgages is to prevent imposition upon subsequent mortgagees and purchasers. Approaching the problem with this principle borne firmly in mind, what seems confusing becomes clear and workable. If notice and protection are to be considered the keynote, then the emphasis should be placed on the necessity for some degree of permanence and stability to be attached to the mechanics of filing.

Reference to Funk & Wagnall’s New Standard Dictionary of the English Language indicates the definition of “ situate ” to be 1. To give a specific position to; fix a site for; 2. To place in á certain position; subject to definite conditions or circumstances; (rare) having a fixed place or a relative position; (archaic) residing; dwelling.

To say that an automobile, which is brought to a designated point solely for the purpose of visual inspection and then driven away, is situated ” at that location within the contemplation of the statute, would be to strain unnaturally and unreasonably at the normal meaning of the word. (People v. Ruthven, 160 Misc. 112; Reis & Co. v. New York Trust Co., 136 id. 141.)

A fundamental maxim of construction is to interpret statutes in a manner which will not tend toward an absurd result. (People ex rel. Glick v. Russell, 181 App. Div. 322; Public Service Commission v. N. Y. Central R. R. Co., 193 id. 615; People ex rel. Barnes v. Warden, 127 Misc. 224.) It is difficult to conceive how the defendant, or others similarly situated, would be benefited in matters of this nature, in the event the court saw fit to uphold the principle it advances herein.

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Bluebook (online)
174 Misc. 149, 20 N.Y.S.2d 108, 1940 N.Y. Misc. LEXIS 1770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/century-insurance-v-glidden-buick-corp-nynyccityct-1940.