Exchange National Bank of Tampa v. State

88 Misc. 2d 444, 388 N.Y.S.2d 971, 1976 N.Y. Misc. LEXIS 2683
CourtNew York Court of Claims
DecidedJuly 16, 1976
DocketClaim No. 58122; Claim No. 58275
StatusPublished
Cited by9 cases

This text of 88 Misc. 2d 444 (Exchange National Bank of Tampa v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exchange National Bank of Tampa v. State, 88 Misc. 2d 444, 388 N.Y.S.2d 971, 1976 N.Y. Misc. LEXIS 2683 (N.Y. Super. Ct. 1976).

Opinion

Sidney Squire, J.

This was a joint trial before me in Rochester of these two claims. In Claim No. 58122, the Exchange National Bank of Tampa ("the Bank”), based in the State of Florida, seeks damages of $10,364.24 with interest "for negligence of the State of New York in the issuance of a Certificate of Title to a 1973 Buick automobile * * * to one, Bob Swan * * * without including in said certificate the name of claimant as a lien holder”. In No. 58275, the claim filed by Lou Holtz Buick, Inc. ("Holtz”), a Rochester automobile dealer, demanded $6,975 for substantially the same alleged negligent acts.

The Bank’s claim (verified pleading) was filed herein on January 7, 1974 and served on the Attorney-General on the same day. The Holtz claim was filed herein on March 13, 1974 and served on the Attorney-General on the same day. Each of these acts was timely.

When the respective claims were filed and served, each of the claimants was represented by different Rochester law firms. Upon a subsequent substitution of attorneys, Holtz’s counsel also became attorneys for the Bank. Thus at trial, both claimants were represented by the same law firm.

During the trial, Holtz’s oral motion to amend its claim by adding a demand for interest, was granted by me in open court. A written order thereon was signed and filed in the clerk’s office.

In Ocala, Florida, on June 5, 1973 one Bob Swan had purchased from a Buick dealer, Caviness Motor Company, a new 1973 Buick Riviera for $6,304.24 including a $6 charge for a Florida vehicle registration and a certificate of title.

On the same day in Tampa, Florida, Swan had obtained a loan from the Bank to finance the purchase. His obligation was evidenced by an "instalment note” of that date to the Bank’s order for $7,014.24 payable in 36 successive monthly installments of $194.84 each, beginning July 15, 1973. As collateral security for the debt, Swan simultaneously signed a "security agreement” describing the automobile and the indebtedness, giving the Bank "a security interest” in that vehicle. In the security agreement, Swan specifically promised to keep the Buick, i.e., the "Collateral”, at 6400 - 18th St. [446]*446North, St. Petersburg, Florida, and not to "remove the Collateral from said state without the written consent of Secured Party” (the Bank).

The Bank’s actual cash advance to Swan ("amount financed”) was $6,000. The remainder of his $7,014.24 obligation consisted of $10.65 for documentary stamps, $10 for "other charges” and $993.59 for "original discount”, i.e., precomputed interest for the 36 months.

Florida was then and has continued to be a vehicle certificate of title ("VCT” or "CT”) State. In due course the Florida VCT for Swan’s Buick was issued on June 26, 1973 and sent to the Bank, the lien holder. The certificate showed "Registered Owner (last name, first) swan bob 6400 18 st n st pete fl”; and "1st LIEN HOLDER EXCHANGE BANK P O BOX 3304 TAMPA FL 33601”, opposite which there were entered, under "date”, "06/05/73” and under "amount of lien”, "$7,014.24”.

Swan did not possess the Florida CT. That was kept by the Bank. The only evidence that Swan had was a "vehicle invoice” from the dealer. On the invoice there were typewritten a description of the Buick, the purchase terms, and alongside of the heading (misspelled) "Lein” (i.e., Lien), there was "Exchange Bank of Tampa $7014.24”.

Swan drove the Buick to Rochester, New York, some time before July 12, 1973. On that day he appeared at the Auto License Bureau ("the Auto Bureau”) in the Monroe County Clerk’s office and made a written application on the defendant’s Department of Motor Vehicles ("DMV”) form MV-82TD for a New York registration and a New York CT. The form served for both purposes although entitled in the alternative "application for registration or title” (emphasis supplied).

The New York State Uniform Vehicle Certificate of Title Act (Vehicle and Traffic Law, tit X, art 46) had been enacted by chapter 1134 of the Laws of 1971, to become effective on July 1, 1972 and to be applicable to vehicles beginning with those manufactured on or after July 1, 1972 and designated as a 1973 model (§ 2102, subd [a], par [10]). The provisions thereof applied to Swan’s 1973 Buick automobile.

The MV-82TD application form required that 14 numbered items be filled in by Swan. No. 3 was for his street address, No. 4, his city, State and zip code, and No. 5, his county of residence. As filled in, the entries for Nos. 3, 4 and 5 were: "6400 18th St. No., St. Pete Fla. 33702 Pinellas”. Other [447]*447numbered entries gave details of the automobile and insurance.

Above Nos. 13 and 14 there appeared in solid capital letters: "FOR 1973 AND NEWER VEHICLES, COMPLETE ITEMS 13 AND 14.” No. 13 asked whether the "Vehicle Was Purchased” used or new. No. 14 had four lines for the applicant to insert: "First Lienholder’s Name (if none — enter 'None’)”, the "Lien Date” and the "Mailing Address” as to number and street, city, State and zip code of the first lien holder. Identical details were to be supplied as to a second lien holder. Immediately below these four lines for No. 13 and No. 14, at the bottom of the page there were printed in even larger solid capital letters: "be sure to complete form and sign the other side.” (Nothing on the form was in larger characters than the said admonition at the bottom of the page.) Nevertheless, Swan did not fill in anything for Nos. 13 and 14. All of the said lines remained blank.

On the face of that form there was a right-hand column headed "this column for office use only”. About three quarters of the page down, among other printed abbreviations there was the printed letter "L”. That letter was a symbol for "Lien”. Around the "L” the Auto Bureau clerk had drawn a circle to denote that the item had received her attention. Alongside of the "L” she wrote "O”, i.e., zero. The lady testified before me that her zero near to the "L” meant "no lien”.

On the reverse side of that form, Bob Swan signed his certification to the defendant’s department:

"I. I CERTIFY THAT:

"1. The information given on this application is true.”

Annexed to his application, Swan submitted only the Florida dealer’s invoice of June 5, 1973. Based on that (and the requisite taxes, fees and proof of insurance coverage), on said July 12, 1973 the Auto Bureau issued and handed to Swan at the County Clerk’s office, a State of New York registration and plates for the Buick. This was done without the submission of a Florida CT by Swan.

The next step was the transmittal of the approved application form and supporting documentation from Rochester to the title bureau of the defendant’s DMV in Albany (L 1971, ch 1134, § 3, amdg Vehicle and Traffic Law, § 205; 15 NYCRR 20.7). Within that bureau there was the screening and control [448]*448section. Its function was to examine and approve the submitted evidence of ownership and status as to any liens. If any proof were defective or insufficient, the set of papers became "a pullout”, and was referred to the department’s title services section for review and disposition. (The prescribed procedures for handling rejected applications included notification to [a] the applicant or [b] an erroneously omitted lienholder or [c] both, as the situation required.)

In the processing of Bob Swan’s application, there was no "pullout”.

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Bluebook (online)
88 Misc. 2d 444, 388 N.Y.S.2d 971, 1976 N.Y. Misc. LEXIS 2683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exchange-national-bank-of-tampa-v-state-nyclaimsct-1976.