General Electric Capital Auto Lease v. Violante

817 A.2d 376, 358 N.J. Super. 171, 2003 N.J. Super. LEXIS 84
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 10, 2003
StatusPublished
Cited by1 cases

This text of 817 A.2d 376 (General Electric Capital Auto Lease v. Violante) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division 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, 817 A.2d 376, 358 N.J. Super. 171, 2003 N.J. Super. LEXIS 84 (N.J. Ct. App. 2003).

Opinion

The opinion of the court was delivered by

KESTIN, P.J.A.D.

In July 1999, plaintiff, General Electric Capital Auto Lease (GECAL), sued Alfonso Violante alleging breach of an installment sales contract for a Lexus automobile and asserting a “perfected security interest” in the ear.2 In a separate count of the complaint, GECAL also sued David’s Towing Service and David Brigati, Jr. t/a David’s Towing Service (collectively, “David’s”) for possession of the car, alleging that it had been taken to David’s at Violante’s behest and that it was being wrongfully held as security for the payment of the towing and storage services rendered by David’s. In its answer, David’s admitted GECAL’s ownership of the vehicle, asserted its contract with Violante and plaintiffs implied consent to such charges for services regarding the automobile as Violante had incurred, and stated that possession of the [173]*173vehicle had already been turned over to GECAL. Affirmative defenses were pleaded, including GECAL’s responsibility as owner of the vehicle “for all costs of towing and storage,” and GECAL’s obligation to answer for the obligations incurred by its lessee.

In a combined cross-claim and counterclaim, David’s asserted an entitlement to payment from GECAL as owner of the vehicle and from Violante, as the person who requested storage and repair. The pleading alleged that, on March 12, 1999, Violante had engaged David’s to “retrieve a motor vehicle which had been vandalized” and to repair the damages. The repairs were not undertaken because the insurer had never inspected the vehicle and authorized the work. On April 28, 1999, in response to GECAL’s inquiry about the vehicle, David’s demanded payment for “pickup, towing charges and storage charges.” From that time until mid-July, discussions ensued between GECAL and David’s regarding their respective claims, but no resolution was reached. After the complaint was filed and served, those parties agreed that David’s would return the vehicle to GECAL in exchange for GECAL’s guarantee that any judgment entered in David’s favor would be paid. GECAL’s answer to the counterclaim asserted several affirmative defenses, including lack of authority on Violante’s part to incur liability by GECAL for repairs or storage charges, and David’s failure to mitigate damages by taking early, reasonable steps to determine the actual ownership of the vehicle.

On June 23, 2000, a default was entered against Violante in respect of all claims.3 The matter proceeded on David’s counterclaim against GECAL. After a case management conference, the trial court, in a letter to counsel dated September 25, 2000, identified the issues as purely questions of law, i.e.,

[174]*174the applicability of N.J.S.A 2A:44-21 regarding its availability to attach a lien to the lessor’s interest without its permission. Also, the applicability of [IW.S.A] 39:10A-8 regarding an abandoned vehicle at a repair facility leased without permission of the owner.

A briefing schedule was established with a view to an argument date in November, 2000.

Oral argument occurred on November 15 and, on December 12, an “order granting summary judgment” to GECAL was entered. The judge’s reasons for the ruling were expressed in a written addendum to the order.4 He referred to language in paragraph four of the lease between GECAL and Violante, which provided:

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.

The judge concluded that

[t]he possibility of a lien was contemplated in the lease and it is apparent that the lessee is responsible for the lien.

and further that

N.J.S.A 2A:44-21 clearly does not apply to leased vehicles.
* * *
The statute does not apply on its face to the attachment of the lien because “lease” is not mentioned anywhere in the statute. The statute applies only to those vehicles which have had historically recorded lien documents with them.
It is also implicit in the lease that the lessor understood by the language that a lien might attach to its interest and even included language that the lessee would have to indemnify it in the event a lien did attach.
For the reasons stated above, the garage man is not entitled to payment for towing and storage by the lessor, pursuant to the statute on which they base their claim, and pursuant to the terms of the lease itself.

David’s subsequent motion for reconsideration was denied.5 Since we address fully the merits of the issues raised before the [175]*175trial court and on appeal, we need not consider whether the motion for reconsideration was timely.

On appeal, GECAL frames two issues in response to David’s contention that “GECAL is responsible for towing and storage charges for its leased vehicle:”

POINT I DOES N.J.S.A. 2A44-21 MAKE A MOTOR VEHICLE OWNER/LESSOR LIABLE FOR STORAGE CHARGES AND/OR CREATE A LIEN IN FAVOR OF THE GARAGE KEEPER IN THE ABSENCE OF THE STATUTORILY REQUIRED KNOWLEDGE AND CONSENT TO THE SERVICES RENDERED TO THE VEHICLE?
POINT II DOES THE MOTOR VEHICLE REPAIR FACILITY ACT, N.J.S.A. 39:10A-14 AND -20, MAKE A LESSOR OWNER LIABLE FOR STORAGE CHARGES OR IS THIS MERELY A MECHANISM TO PREVENT A SALE AND TO RECOVER A VEHICLE ABOUT TO BE SOLD AFTER NOTICE AND DUE PROCESS?

During oral argument before the trial court, David’s stressed the lease terms that required the lessee to maintain and repair the vehicle at his expense, arguing that in order for the lessee to have the ability to see to repairs of the vehicle, the lessor must be deemed to have given the lessee authority to order the repairs. The argument continued:

“it is at least implicit in the agreement that the lessee has the authority to bind and, therefore, is acting with the consent of the lessor.”
* * *
[The lease] intends that if, because of the lessee’s conduct in having those things done a lien applies and attaches, that the lessee will then indemnity the lessor from any obligations ... that the lessor is responsible for. That is an obligation between those parties, has nothing to do with the person for [whose] benefit ... a lien attaches!,] and a lien attaches ... when a service is performed.

The motion judge posed a question to counsel based upon a hypothetical situation in which a lessee abandons the vehicle:

Who’s in a better position to ameliorate the accumulation of Hens, the lessor or the garage man who has the car with the lease papers probably in the glove compartment, with the registration certificate that says, if I’m going to get a lien, [176]*176I’d better notice this leaseholder [sic] that I’m charging him $35 a day to keep this car here.

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

Related

General Electric Capital Auto Lease v. Violante
848 A.2d 732 (Supreme Court of New Jersey, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
817 A.2d 376, 358 N.J. Super. 171, 2003 N.J. Super. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-capital-auto-lease-v-violante-njsuperctappdiv-2003.