General Electric Capital Auto Lease v. Violante

848 A.2d 732, 180 N.J. 24, 2004 N.J. LEXIS 549
CourtSupreme Court of New Jersey
DecidedMay 25, 2004
StatusPublished
Cited by5 cases

This text of 848 A.2d 732 (General Electric Capital Auto Lease v. Violante) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Capital Auto Lease v. Violante, 848 A.2d 732, 180 N.J. 24, 2004 N.J. LEXIS 549 (N.J. 2004).

Opinions

Justice ZAZZALI

delivered the opinion of the Court.

In this case, a garage keeper who towed and stored a leased vehicle at the request of the lessee seeks to recover payment from the lessor for the value of those services by enforcing a lien against the vehicle pursuant to the Garage Keeper’s Lien Act, N.J.S.A. 2A:44-20 to -31(Act). That statute entitles a garage keeper to secure payment for storage, maintenance, repairs, and [28]*28other services performed “at the request or with the consent of the owner or his representative” by imposing a lien on the motor vehicle serviced. N.J.S.A. 2A:44-21. The lessor challenged the garage keeper’s right to a lien, arguing that the Act does not permit a lien for services furnished at the lessee’s request because the lessee is neither the owner nor the owner’s representative. The trial court dismissed the garage keeper’s lien claim and the Appellate Division affirmed.

We must determine whether a lessee is a lessor’s “representative” within the meaning of the Act when the lease agreement requires the lessee to service and repair the vehicle. We hold that by so obligating the lessee, the lessor confers upon the lessee the powers of a “representative” to provide the lessor’s consent to services and repairs contemplated by the lease agreement. The garage keeper, therefore, can pursue its lien claim against the vehicle for those services that the lessee authorized as the owner’s “representative.”

We also address the garage keeper’s claim that N.J.S.A. 39:10A-14 makes a lessor, as the vehicle’s owner, liable for all charges related to storage and repairs. N.J.S.A. 39:10A-14 supplies owners with a mechanism for preventing a garage keeper from disposing of an abandoned motor vehicle. Because, in this appeal, the lessor’s vehicle was not “abandoned” in the statutory sense, N.J.S.A. 39:10A-14 does not afford the garage keeper with a basis for recovery against the lessor.

I.

This case comes to us on appeal from a motion for summary judgment granted in favor of the lessor. Accordingly, we must accept as true the evidence supporting the garage keeper and accord that party the benefit of all favorable inferences. R. 4:46—2(c); Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 536, 666 A.2d 146, 154 (1995). Viewed in that light, the pertinent facts are as follows.

[29]*29In July 1997, Alfonso Violante (lessee) leased a 1994 Lexus GS300 from Bob Ciasufii Lexus, who then assigned “all right, title, and interest in and to the Vehicle and [the] Lease” to respondent General Electric Capital Auto Lease (GECAL or lessor). As a result of the assignment, the vehicle’s Certificate of Title lists GECAL as the vehicle’s owner.

The lease agreement contains the following provisions:

USE AND CARE OF THE VEHICLE

1. USE AND RETURN OF THE VEHICLE

This Lease gives you 1 the right to use the Vehicle, according to the terms of this Lease, until this Lease ends____

2. VEHICLE CARE AND CONDITION

You will pay all expenses for the use and care of the Vehicle. This includes, but is not limited to, expenses for maintenance, insurance, repairs, gas, oil and tires. You will have the Vehicle serviced regularly as recommended by the manufacturer and as required by any warranty or service contract. You will maintain the Vehicle in good working order and condition, keep service and repair records, and allow us to inspect the Vehicle and records at any reasonable time. You will not make any change to the Vehicle, such as adding or removing parts, that would reduce the Vehicle’s value or usefulness. All additions to the Vehicle that cannot be removed without reducing the Vehicle’s value or usefulness will become our property.

3. EXCESS WEAR

You are responsible for all repairs to the Vehicle that are not the result of normal wear. These repairs include, but are not limited to, those necessary to: (i) replace any tire that has less than 1/8 inch of remaining tread or is not of at least the same size and type that was on the Vehicle on the Delivery Date; (ii) repair or replace any item that is damaged, broken, missing, not in good condition, not in good working order, or that would be covered by collision or comprehensive insurance whether or not such insurance is actually in force____

4. LIENS, CLAIMS AND TICKETS

Unless we consent in writing, you will not transfer any interest in the Vehicle or this Lease. You will not create or let continue a lien on the Vehicle or this Lease. You will tell us as soon as possible if anyone claims a lien or other interest in the Vehicle or this Lease. You will indemnify us and hold us harmless for all liability (including strict liability), losses and expenses arising from the use, location or condition of the Vehicle, or from a lien or other interest you give or let continue without our written consent. This means that if, because of one of these matters, a [30]*30claim is made against us or the Vehicle or we incur losses or expenses, you will pay to defend us and you will pay the claim, losses and expenses____
[(Emphasis added.)]

The agreement also gives the lessee the option to purchase the automobile at the end of the lease term for $14,677.50.

On March 12,1999, during the term of the lease, the automobile was vandalized. The lessee, who by that time had defaulted on his lease payments, contacted petitioner David’s Towing Service (David’s) and requested towing and repair services for the damaged vehicle. That day, David’s towed the vehicle to its garage. Although the vehicle remained in its possession from the towing date until August 1999, David’s did not undertake any repairs. According to David’s, it delayed servicing the automobile based on the lessee’s indication that his insurance company first had to inspect the damage.

GECAL learned that the vehicle was being stored at the repair shop in late April 1999, almost six weeks after David’s had towed the vehicle. On or about April 28, 1999, GECAL requested access to the vehicle for inspection and removal. David’s denied that request because GECAL refused to pay the towing charges and storage fees that had accumulated since March 12, 1999.

In July 1999, GECAL commenced an action in Superior Court against the lessee for breach of the lease contract and repossession of the vehicle and against petitioners David Brigati, Jr. and David’s Towing Service (collectively, David’s) for replevin of the vehicle. After the complaint had been filed and served, David’s agreed to release the car to GECAL in return for GECAL’s promise to pay any judgment for towing and storage costs that David’s might be awarded against it.

David’s then filed a combined crossclaim and counterclaim against GECAL and the lessee. David’s asserted that under New Jersey law, GECAL, as the vehicle’s owner, and the lessee, as the individual that requested services, were jointly and severally liable for the towing and storage bill of $6,550.83, $6,010.20 of which was attributable to storage fees. David’s also claimed that by requir

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Bluebook (online)
848 A.2d 732, 180 N.J. 24, 2004 N.J. LEXIS 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-capital-auto-lease-v-violante-nj-2004.