Colella v. Essex County Acceptance Corp.

192 N.E. 622, 288 Mass. 221, 1934 Mass. LEXIS 1259
CourtMassachusetts Supreme Judicial Court
DecidedOctober 25, 1934
StatusPublished
Cited by16 cases

This text of 192 N.E. 622 (Colella v. Essex County Acceptance Corp.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colella v. Essex County Acceptance Corp., 192 N.E. 622, 288 Mass. 221, 1934 Mass. LEXIS 1259 (Mass. 1934).

Opinion

Field, J.

This suit in equity was brought by Pasquale Colella against the Essex County Acceptance Corporation, herein called the defendant, for a decree adjudging a certain automobile the property of the plaintiff, free of liens or claims of the defendant, and enjoining the defendant from instituting any proceeding at law or in equity whereby the plaintiff’s control, use and possession of such automobile may be interfered with, from assigning, transferring or delivering to any person the conditional sale contract covering this automobile and from instituting any proceeding at law or in equity against the plaintiff for moneys claimed to be due under said conditional sale contract, or by reason of the plaintiff’s having purchased the automobile and now having possession thereof. The bill alleges fraud on the part of the defendant. The defendant filed an answer containing denials of the allegations of fraud and a counterclaim in which it alleged that, under the terms of a conditional sale contract, it is the present holder of the legal title to the automobile, that one Allen B. Newhall appears as maker of the conditional sale contract and the note attached thereto, a copy of which is annexed, that said Newhall is liable to the defendant for the unpaid balance due thereunder, and that it is essential that the said Newhall be made a party to this proceeding. The defendant also by way of counterclaim asks the affirmative relief of a decree establishing its rights as the owner of the automobile, free of all claims of the plaintiff, enjoining the plaintiff from preventing the defendant from obtaining possession thereof and ordering the plaintiff to deliver the automobile to the defendant, and, in the alternative, in the event that the defendant’s title is not established in this [225]*225proceeding, ordering said Newhall to pay to the defendant the amount of its claim under the conditional sale contract. Newhall filed an answer to this counterclaim in which he admitted that he signed the conditional sale contract and note, a copy of which is annexed to the defendant’s answer.

The case was referred to a master who made a report which has been confirmed by an interlocutory decree from which no appeal was taken. The facts found by the master include the following: George W. Nixon, Inc., sold to Allen B. Newhall the automobile in question. The defendant is the present holder of a conditional sale contract for the automobile executed by Newhall in March, 1931, under the terms of which title to the automobile remains in the seller or its assigns until all payments called for by the contract have been made. The last payment made by Newhall on the contract was in November, 1931, and a balance of $900 then remained due. In May or June, 1931, Newhall surrendered the automobile to George W. Nixon, Inc., and bought another from that corporation. George W. Nixon, Inc., attempted to sell and did deliver the automobile in question to one Parker who attempted to sell and did deliver it to the plaintiff for cash and another automobile. Newhall, when he delivered the automobile to George W. Nixon, Inc., knew that the corporation intended to resell it and later learned of the resale. The defendant had no knowledge of the transaction and did not learn that New-hall was no longer in possession of the automobile until October or November, 1931. Sometime before February 23, 1932, the defendant learned that the automobile was in the possession of the plaintiff and on February 23, 1932, "the matter was first brought to the attention of the plaintiff when a demand was made upon him by a representative of” the defendant for this automobile. The master finds that title to the automobile still remains in the defendant under the terms of the conditional sale contract with Newhall and, so far as they are questions of fact, that the plaintiff was misled and damaged by the action of Newhall, and that Newhall is still liable to the defendant upon the conditional sale contract. There is no finding of fraud on [226]*226the part of the defendant. The plaintiff alleges and the defendant admits that the defendant caused a replevin writ to be delivered to a deputy sheriff for the purpose of replevying the automobile, and that demand was made upon the plaintiff on March 11, 1932, for such automobile. This suit was brought on that day. No copy of the conditional sale contract is incorporated in the master’s report, but we treat the copy referred to in the answers of the defendant and Newhall, as the plaintiff has treated it, as before the court for the determination of the rights of all parties.

A final decree was entered establishing the claim of the defendant against Newhall in the sum of $1,123.30 — apparently the unpaid balance of the purchase price with interest and attorney’s fees — with costs and ordering execution to issue therefor, and further ordering that upon payment of this sum the defendant execute and deliver to the plaintiff a bill of sale of the automobile, free from encumbrances arising out of the conditional bill of sale, that upon the failure of Newhall to pay the execution within thirty days of the date of the decree the plaintiff pay the defendant this amount, that upon payment by the plaintiff of this amount the defendant execute a bill of sale of the automobile and assign and deliver to the plaintiff the execution above referred to, and that upon the failure of Newhall to pay the execution within thirty days of the decree and the failure of. the plaintiff to pay as ordered within forty days of the decree and the return to the court of the execution above referred to unsatisfied, an execution issue payable to the defendant against the plaintiff. From this final decree the plaintiff and Newhall appealed, but the appeal of Newhall has not been argued and we treat it as waived.

The plaintiff does not now contend that he is entitled to the relief'sought by his bill. And no contention is now made that the defendant is not entitled to the relief against New-hall which the decree gives. The only controversy on this appeal is between the plaintiff and the defendant, and is whether the defendant is entitled to the relief against the plaintiff which is given by the decree. The defendant, which [227]*227has not appealed from the decree, contends that it should be affirmed. The plaintiff contends that the only decree which could be issued against him “is one to the effect that upon certain conditions the automobile in question should be returned” to the defendant.

When the present bill in equity was brought — and when each of the demands was made on the plaintiff for the automobile —■ Newhall, the conditional vendee, was in default in the payment of instalments under the conditional sale contract, and also had failed to comply with the provision of the contract that he would not “sell, lend, pledge, assign, encumber or dispose of said Motor Vehicle or this contract or any interest therein” until all amounts due under the contract had been paid. In these circumstances, according to the terms of the contract, the defendant was entitled to recover from Newhall the balance due under the contract and to take possession of the automobile. It was not required to elect between these remedies. The contract provided that upon default by the purchaser in payment of any instalment or failure to comply with any provision of the contract “the Seller may declare the entire amount then unpaid immediately due and payable and may collect same from the Purchaser as liquidated damages for the breach of this contract, and may take possession of said Motor Vehicle ....

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Cite This Page — Counsel Stack

Bluebook (online)
192 N.E. 622, 288 Mass. 221, 1934 Mass. LEXIS 1259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colella-v-essex-county-acceptance-corp-mass-1934.