Clay v. Harris

592 N.E.2d 1154, 228 Ill. App. 3d 475, 170 Ill. Dec. 474, 1992 Ill. App. LEXIS 694
CourtAppellate Court of Illinois
DecidedMay 7, 1992
Docket4-91-0821
StatusPublished
Cited by5 cases

This text of 592 N.E.2d 1154 (Clay v. Harris) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clay v. Harris, 592 N.E.2d 1154, 228 Ill. App. 3d 475, 170 Ill. Dec. 474, 1992 Ill. App. LEXIS 694 (Ill. Ct. App. 1992).

Opinion

JUSTICE KNECHT

delivered the opinion of the court:

Plaintiff, Alonzo Clay, as independent executor of Erma W. Dahl’s estate, appeals the Livingston County circuit court’s dismissal of his complaint against defendant, William A. Harris, to recover the sale price of a car sold to Harris at an auction and for damages for storing the car. Clay argues the circuit court judge erred by concluding Harris could rescind their contract. We disagree and affirm.

On August 20, 1989, Clay, as independent executor of the estate of Erma Wesley Dahl, auctioned a 1973 Chevrolet Caprice automobile. Harris successfully bid $4,100 on the car. No announcement was made during the auction about whether a certificate of title to the car would be available. After the auction, Harris’ son paid for the car and requested the certificate of title to it. The auctioneer told him Clay had the certificate of title. Harris’ son drove the car to Harris’ home.

The following day, Harris went to Clay’s office to obtain the certificate of title. He discovered Clay did not have the certificate. Clay told Harris that, after looking through the decedent’s papers, he could not find the certificate. He offered to try to secure a certificate of title to the car and stated he could apply for a lost title.

When Harris inquired further, Clay told him he did not know how long it would take to secure a lost title, but he would not cash Harris’ check for the car until he received the certificate of title. Harris told Clay he needed to use the car on Friday, August 25, for a trip out of State, and if he did not receive the certificate of title by 5 p.m. on this date, he would return the car to Clay. He explained he needed the title to legally drive the car or to obtain a license for the car.

Harris stopped in Clay’s office again on Wednesday, August 23, and was told Clay had not located the certificate. Clay rejected Harris’ suggestion he consider accepting the second highest bidder’s offer for the car. Harris again explained he needed the certificate before 5 p.m., August 25.

Because he had not received the certificate of title shortly before 5 p.m. on August 25, Harris drove the car to Clay’s office, parked it, gave the keys to Clay’s secretary and indicated to her where the car was parked. Clay testified the car was returned to him in this way on or before August 30 and had since been stored in his garage. Harris’ check for the car and other items purchased at the auction had not yet been deposited. Harris retrieved this check from the bank and wrote a new check for other items purchased, less the $4,100 for the car.

Clay received a duplicate certificate of title to the car on September 15, 1989. He requested it sometime after the auction and it was issued by the Secretary of State on September 13, 1989. On September 15, Clay wrote to Harris to tell him he had received the duplicate certificate. Clay also stated that he expected to receive Harris’ check for the car shortly. Harris did not respond.

On September 20, 1990, Clay filed a complaint against Harris for the car’s purchase price and storage costs. The circuit court denied Clay’s summary judgment motion. At the June 11, 1991, bench trial, the circuit court concluded the parties had entered an oral contract by virtue of Harris’ bid on the car and Clay’s acceptance of Harris’ bid. He also found the contract contained an implied term requiring Clay to deliver the certificate of title to Harris within a reasonable time. The parties were given an opportunity to file memoranda regarding the effect of Clay’s failure to deliver a certificate of title with assignment and warranty of title to Harris when the car was given to him.

On July 12, 1991, the circuit court ruled in favor of Harris and dismissed Clay’s claim for $4,100 as payment for the car. The judge held the contract between the parties required Clay to deliver to Harris a properly executed certificate of title. Clay’s failure to do so when possession of the vehicle was transferred to Harris constituted delivery of nonconforming goods. He further reasoned Harris provided Clay a reasonable time to cure this nonconformity by allowing him five days to obtain the title. Harris could rescind the contract because Clay did not provide title within that time. The judge also denied Clay’s request for damages amounting to $770 for storing the car. Clay’s post-trial motion was also denied. This appeal followed.

Clay raises numerous arguments why the trial court erred by concluding Harris could rescind his agreement to purchase the car. He begins by providing this court a long explanation about why his case is important. Each case reviewed by this court is decided based on the merits. Although the bases for Clay’s additional arguments are difficult to discern, we will address each as fully as possible.

Clay argues the Illinois Vehicle Code (Vehicle Code) (Ill. Rev. Stat. 1989, ch. 951/2, par. 1 — 100 et seq.) should not override general sales principles. He directs us to section 2 — 401(2) of the Uniform Commercial Code — Sales (Commercial Code) (Ill. Rev. Stat. 1989, ch. 26, par. 2— 401(2)), which states title to goods sold passes to the buyer when the seller physically delivers the goods. He also directs us to the traditional rule that a sale at a public auction is final and title to the property passes to the bidder once the auctioneer strikes off the item. See Ill. Rev. Stat. 1989, ch. 26, par. 2 — 328(3).

However, the trial court indicated the question of when title to the vehicle passed to Harris was not the guiding factor. We agree. The issue raised is whether, pursuant to the parties’ agreement, an implied term was that Clay deliver a certificate of title to Harris.

Clay contends their contract did not require him to deliver a certificate of title to Harris. He notes he did not discuss this topic with any bidder before the auction, and the topic was not announced during the auction. The court did not, however, find there was an express agreement between the parties. Rather, Clay’s obligation to deliver the title to Harris was implied. We note Clay’s actions intimate he presumed he was selling the car with the certificate of title. He testified he thought the certificate was within the papers he had given to the auctioneer. He also told Harris the auctioneer had the certificate. When Harris told Clay the auctioneer did not have it, Clay told Harris he would not cash Harris’ check until the certificate was replaced through the Secretary of State.

Harris argues the trial court correctly concluded the parties’ agreement contained an implied term requiring Clay to deliver a properly executed certificate of title to Harris when he took possession of the car. In the alternative, the title, at a minimum, had to be delivered within a reasonable time after Harris took possession of the car. Clay’s failure to meet this implied term constituted delivery of nonconforming goods and permitted Harris to rescind the contract.

Clay seems to argue a sale completed at an auction cannot be rescinded based on provisions of the Vehicle Code. He bases this argument on cases which have concluded that because the Vehicle Code is penal in nature it must be strictly construed. See Smith v. Rust (1941), 310 Ill. App.

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Bluebook (online)
592 N.E.2d 1154, 228 Ill. App. 3d 475, 170 Ill. Dec. 474, 1992 Ill. App. LEXIS 694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clay-v-harris-illappct-1992.