Consolidated Credit Corp. v. Laurence

429 P.2d 455, 5 Ariz. App. 568, 1967 Ariz. App. LEXIS 486
CourtCourt of Appeals of Arizona
DecidedJune 29, 1967
DocketNo. 1 CA-CIV 217
StatusPublished
Cited by2 cases

This text of 429 P.2d 455 (Consolidated Credit Corp. v. Laurence) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Credit Corp. v. Laurence, 429 P.2d 455, 5 Ariz. App. 568, 1967 Ariz. App. LEXIS 486 (Ark. Ct. App. 1967).

Opinion

PORTER MURRY, Judge of the Superior Court.

Appellee, John Laurence, dba Laurence Company, hereinafter called plaintiff, on March 27, 1961, in the Superior Court of Cochise County, Arizona, took judgment against C. M. Dressel and Leota Dressel, his wife.

Thereafter, on May 23, 1961, a writ of execution was issued by the Clerk of the Cochise County Superior Court and delivered to the Sheriff of Maricopa County. On the same day, pursuant to said writ of execution, the sheriff levied upon two transport semi-trailers and two Kenworth tractors owned by C. M. Dressel and Leota Dressel.

On June 2, 1961, appellants, Consolidated Credit Corporation and Colorado Kenworth Company, referred to in this opinion as defendants one and two, filed with the sheriff their Third Party Claim to property levied upon, together with the required bonds. The two transport semi-trailers were then released to Defendant one and the two Kenworth truck trailers were released to Defendant two.

On September 28, 1961, pursuant to Title 12, Chapter 8, Article 13 of the Arizona Revised Statutes, the Superior Court entered its direction of issue, and the parties to this action thereafter filed their pleadings bringing this matter to issue. The action was tried by the Court sitting without a jury which granted judgment to the Plaintiff and against the Defendants. From this judgment the Defendants appeal.

The action was a trial of title to personal property under levy, a statutory proceeding governed by A.R.S. § 12-1331 et seq. The defendants claimed property which had been levied upon by plaintiff while executing the above judgment he held against C. M. Dressel.

The issues involved are: 1. The identification of the property subject to levy. 2. The nature of defendants’ interests in the property, and 3. The actual or constructive notice to plaintiff of defendants’ interests; the question of priorities of liens—one a domestic execution lien and the others foreign instrument liens.

The lower court held (1) That the vehicles levied upon were not, in fact, the vehicles upon which the defendants claimed their liens, (2) The liens claimed by defendants were not entitled to priority over the plaintiff’s Arizona execution lien, and (3) Plaintiff was not chargeable with notice of any liens claimed by Defendants upon the vehicles levied upon. It is from these holdings and upon these issues that Defendants appeal.

On May 3, 1960, one Calvin M. Dressel, a resident of Sterling, Logan County, Colorado, purchased from Colorado Kenworth Company of Denver, Colorado, a 1952 Ken-worth Truck tractor, Model CD825C, serial number 61811, motor number 133743, and a [570]*5701951 Kenworth Truck tractor, Model 825, serial number 60487, motor number 132021. Colorado Kenworth Company took as security for payments of the balance a chattel mortage on the two truck tractors. At the time of levy of plaintiff’s writ of execution Truck Acceptance Corporation was the holder of said chattel mortage.

The same Calvin M. Dressel, on May 6, 1960, purchased from Lincoln Sales & Service, Inc., Cedar Rapids, Iowa, a 1960 Transiport Semi-trailer (Grain), Model GRX-38, Serial Number 4025, and a 1960 Transport Semi-trailer (Grain), Model GRX-38, Serial Number 4026, by conditional sale contract thereon, and the contract was assigned to Consolidated Credit Corporation. At the time of the assignment of the conditional sale contract to it, Consolidated Credit Corporation knew that Calvin M. Dressel resided in the State of Colorado and intended to take the two trailers there but did not file or record its conditional sale contract in the State of Colorado.

Not later than August 9, 1960, Calvin M. Dressel moved to Arizona, and Consolidated Credit Corporation was aware that he resided in Arizona from and after August 9, 1960, and Colorado Kenworth Company was aware that he resided in Arizona from and after October 27, 1960, and knew his- Arizona address at some time between said date and the time of the levy of plaintiff’s writ of execution. Neither defendant ever filed or recorded their liens in accordance with Arizona law.

After moving to Arizona, Calvin M. Dressel began buying grain from plaintiff at his two places of business in Willcox, picking up the grain at both places of business with two or more truck tractors and grain trailers but never with more than two at a time. Sometimes Dressel himself would be driving one of the truck tractors and at other times other drivers would be driving the one or two truck tractors that would appear at a time. The vehicles were similar in appearance and could not be distinguished by plaintiff, and the truck tractors had the name “C. M. Dressel” painted on their fuel tanks. Plaintiff was unable to tell if there were more than two truck tractors and trailers being used by Calvin M. Dressel.

C. M. Dressel failed to pay plaintiff for all of the grain purchased from him, and plaintiff took an Arizona judgment against him. Plaintiff searched for Dressel or assets with which to satisfy the judgment, and one of his employees told him he thought the vehicles bore Colorado plates. Plaintiff searched the records of the Arizona Motor Vehicle Division but found no record of the vehicles he had seen in Willcox nor of the liens claimed by defendants, but he had no identification numbers to assist him in making the search.

Through an anonymous phone call plaintiff learned that Calvin M. Dressel had purchased some vehicles from Colorado Kenworth Company. He placed a call to that company and talked to C. A. Carletti, Jr., credit manager of the company. Upon inquiring if Carletti knew the whereabouts of Dressel, plaintiff received a negative reply. He advised Carletti that he was a creditor of Dressel looking for assets. Carletti advised him that his company had sold Dressel two truck tractors and carried a balance on them. He gave plaintiff the sale price and balance. The only description of the vehicles given plaintiff was that they were 1951 and 1952 Kenworth truck tractors. Plaintiff’s request for serial numbers was refused by Carletti. (Carletti claimed to have given plaintiff the color and cab style, and the serial numbers, he believed.) Plaintiff inquired about taking over the two trucks on which the company claimed its lien and was advised by Carletti that this might be possible, subject to a favorable credit report. In some manner—the evidence does not show how—plaintiff also was made aware of Dressel’s purchase of the two grain trailers, and a phone conversation with Charles M. Smith of that company (Consolidated Credit Corporation) followed. The conversation was similar to that with Carletti, and again serial numbers were not furnished. Plaintiff learned only that the [571]*571vehicles upon which that company claimed' its liens were two grain trailers. Plaintiff understood that the defendants and he would cooperate with each other in attempting to locate C. M. Dressel or any of his vehicles. At least two, and possibly three more phone conversations followed in which plaintiff inquired if Carletti had located Dressel or his vehicles, and he was advised that he had not.

On May 23, 1961, in support of plaintiff’s judgment against Calvin M. Dressel, the Sheriff of Maricopa County, Arizona, levied upon the following vehicles:

One Kenworth Tractor, Colorado Lie UG 172, 1961
Tab A802393

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Guirey, Srnka & Arnold, Architects v. City of Phoenix
449 P.2d 306 (Court of Appeals of Arizona, 1969)
Smith v. Goodman
430 P.2d 922 (Court of Appeals of Arizona, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
429 P.2d 455, 5 Ariz. App. 568, 1967 Ariz. App. LEXIS 486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-credit-corp-v-laurence-arizctapp-1967.