Ferraro v. Pacific Finance Corp.

8 Cal. App. 3d 339, 87 Cal. Rptr. 226, 1970 Cal. App. LEXIS 2045
CourtCalifornia Court of Appeal
DecidedMay 29, 1970
DocketCiv. 25644
StatusPublished
Cited by55 cases

This text of 8 Cal. App. 3d 339 (Ferraro v. Pacific Finance Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferraro v. Pacific Finance Corp., 8 Cal. App. 3d 339, 87 Cal. Rptr. 226, 1970 Cal. App. LEXIS 2045 (Cal. Ct. App. 1970).

Opinions

Opinion

ELKINGTON, J.

Defendants Pacific Finance Corporation (Pacific) and William Steitz, doing business as Bill Steitz Motor Sales (Steitz), appeal from a judgment in favor of plaintiff Pat Ferraro, entered upon jury verdicts on July 12, 1968, nunc pro tunc as of January 31, 1968. The action was brought for damages resulting from the alleged conversion by Pacific and Steitz of Ferraro’s automobile.

At an earlier trial the court directed the jury to return a verdict for Ferraro’s compensatory damages. By the instructions they were also permitted to determine whether exemplary damages should be awarded, and if so, the amount. The jury fixed the compensatory damages at $2,812 and awarded exemplary damages of $15,000 against Pacific and $8,000 against Steitz. On Pacific’s and Steitz’ motions for a new trial, a limited new trial “solely on the issue of the amount of punitive damages to be assessed” was granted.

The judgment from which this appeal is taken is based upon the verdict for compensatory damages of $2,812 returned by the first jury, and exem[345]*345plary damages of $25,000 against Pacific and $8,000 against Steitz, returned by the second jury after the limited retrial. Pacific has also appealed from a “judgment” entered August 30, 1967, by the clerk, pursuant to the directions of Code of Civil Procedure section 664, following the first jury’s verdicts. The order granting a limited new trial had the effect of vacating the earlier judgment. (Love v. Wolf, 249 Cal.App.2d 822, 840 [58 Cal.Rptr. 42]; King v. Goldberg, 159 Cal.App.2d 543, 544 [523 P.2d 1035]; Universal Film Mfg. Co. v. Kerrigan, 47 Cal.App. 255 [190 P. 475].) Since an appeal obviously cannot lie from a vacated judgment the purported appeal from the “judgment” entered August 30, 1967, must be dismissed.

Appellants’ principal contention is that the awards of exemplary damages must be set aside since they were based upon passion and prejudice of the jury.

In our inquiry we are bound by the “substantial evidence” rule. This principle holds that when a jury verdict is attacked on the ground that it is not sustained by the evidence the power of an appellate court begins and ends with the determination whether there is any substantial evidence, contradicted or uncontradicted, which will support the verdict; when two or more inferences can reasonably be drawn from the facts the reviewing court may not substitute its deductions for those of the trier of fact, here the jury. (See Green Trees Enterprises, Inc. v. Palm Springs Alpine Estates, Inc., 66 Cal.2d 782, 784 [59 Cal.Rptr. 141, 427 P.2d 805].)

Following the substantial evidence rule we accept the facts in support of the exemplary awards as they were presumably found by the jury.

The trial record discloses the following evidence.

In April 1966 one Howard Bowers bought a 1964 Cadillac automobile from defendant Steitz, a used car dealer. The transaction took the form of a conditional sales contract under which Bowers made a $600 down payment and agreed to pay the balance in monthly installments. The contract was then sold and assigned to defendant Pacific under an agreement providing that Pacific would have “ownership indicia” of the car. In preparing the necessary application for change of ownership with the Motor Vehicle Department, an employee of Steitz neglected to indicate Pacific’s security interest in, or “legal ownership” of, the Cadillac. Because of this error, some weeks later the Motor Vehicle Department forwarded to Bowers a negotiable certificate of ownership or “pink slip” of the automobile, which showed him to be the owner and the vehicle to be unencumbered.

Plaintiff Ferraro was the manager of a motel in Santa Clara County. On July 19, 1966, he learned that Bowers, a guest of the motel, had [346]*346a Cadillac automobile which he wanted to sell. Ferraro was interested. The “pink slip,” designating Bowers as the owner was exhibited. Ferraro examined and drove the car and then offered Bowers $2,700. The offer was accepted and the price was paid. Bowers delivered the endorsed “pink slip” and the automobile to Ferraro on July 20. The transfer as to Ferraro was in all respects bona fide. Ferraro thus became the absolute owner of the Cadillac automobile free of any claim of Steitz or Pacific.1

In the meantime Bowers had missed the second installment of the contract then owned by Pacific. Sometime around July 17, 1966, and “prior to July 18,” Steitz learned that the “pink slip” had been issued to Bowers. He promptly communicated this information to Pacific. On July 19 or 20 Steitz “checked with the Department of Motor Vehicles and determined that Mr. Bowers had the pink slip issued in his name.” He kept Pacific informed. Soon thereafter both Pacific and Steitz learned that the Cadillac was in Ferraro’s possession. Then Pacific heard that Bowers had given the car to Ferraro. It entered Pacific’s mind that Ferraro had purchased the car, but the company decided against making any inquiry of him. On or about July 26 Pacific decided to repossess. The company “got ahold of the ignition number and trunk number so keys could be made so [Pacific] could drive the car away.” Decision was reached to pick up the car around 3 o’clock in the morning.

Asked if there was any reason why he didn’t check with Ferraro before repossessing the vehicle, Pacific’s operations manager (since promoted to branch manager) who directly handled the transaction, replied, “[T]he easiest way is to restore the automobile first and ask questions second to be quite frank, because we get in a lot of trouble with third party people figuring they had a legal right to the car.” He then stated that such was “the policy of the company.”

Pacific then called upon its professional automobile repossessor to do the job. Upon learning of the state of the car’s title this man said, “I would like just to pass this assignment and not get involved. It might cause me some problem.” Steitz, aware of Ferraro’s ownership, had no intention to pick up the car. When asked to do so by Pacific he declined the undertaking ex[347]*347cept as Pacific’s agent, “because they own the contract, and, in fact, it was their car, as far as [he] was concerned.” Pacific accordingly by letter authorized a Steitz employee to pick up “our 1964 Cadillac.” With the letter he was furnished by Pacific with duplicate keys and a written memorandum giving Ferraro’s address, describing him as “owner of motel,” and suggesting that the job be done at “3 a.m.” The repossession admittedly was for the “account of Pacific,” not Steitz.

Ferraro’s car was picked up during the night of July 28-29, 1966, and taken to Steitz’ lot where it was held subject to Pacific’s order. When he discovered his car to be missing, Ferraro notified the police who later informed him that “Pacific Finance Company had repossessed it.”

On August 1, 1966, Ferraro’s attorney wrote Pacific as follows: “This office represents Patrick F. Ferraro who purchased the above-described automobile on July 20,1966, from one Howard Bowers. Mr. Bowers had the pink slip to the car in his possession showing him to be the legal owner. On July 28, 1966, Mr. Ferraro found his car missing and reported it stolen.

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

Related

Appel v. Wolf
S.D. California, 2023
Pacific Corporate Group Holdings v. Keck
232 Cal. App. 4th 294 (California Court of Appeal, 2014)
Vestar/Kimco Tustin v. Sesbar CA4/3
California Court of Appeal, 2014
Lugo v. Good Guys Auto Sales CA4/1
California Court of Appeal, 2013
Sunclipse, Inc. v. Butcher (In Re Butcher)
200 B.R. 675 (C.D. California, 1996)
Cobb v. University of So. California
32 Cal. App. 4th 798 (California Court of Appeal, 1995)
Cobb v. University of Southern California
32 Cal. App. 4th 798 (California Court of Appeal, 1995)
Beavers v. Allstate Insurance
225 Cal. App. 3d 310 (California Court of Appeal, 1990)
Suburban Motors, Inc. v. State Farm Mutual Automobile Insurance
218 Cal. App. 3d 1354 (California Court of Appeal, 1990)
Gagnon v. Continental Casualty Co.
211 Cal. App. 3d 1598 (California Court of Appeal, 1989)
Seeley v. Seymour
190 Cal. App. 3d 844 (California Court of Appeal, 1987)
Louis & Diederich, Inc. v. Cambridge European Imports, Inc.
189 Cal. App. 3d 1574 (California Court of Appeal, 1987)
T & O Mobile Homes, Inc. v. United California Bank
709 P.2d 430 (California Supreme Court, 1985)
Hobbs v. Bateman Eichler, Hill Richards, Inc.
164 Cal. App. 3d 174 (California Court of Appeal, 1985)
Slaughter v. Legal Process & Courier Service
162 Cal. App. 3d 1236 (California Court of Appeal, 1984)
Alvarez v. Sanchez
158 Cal. App. 3d 709 (California Court of Appeal, 1984)
Moore v. American United Life Insurance
150 Cal. App. 3d 610 (California Court of Appeal, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
8 Cal. App. 3d 339, 87 Cal. Rptr. 226, 1970 Cal. App. LEXIS 2045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferraro-v-pacific-finance-corp-calctapp-1970.