Goldenberg v. Federal Finance & Credit Co.

133 A. 59, 150 Md. 298, 1926 Md. LEXIS 30
CourtCourt of Appeals of Maryland
DecidedApril 7, 1926
StatusPublished
Cited by7 cases

This text of 133 A. 59 (Goldenberg v. Federal Finance & Credit Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldenberg v. Federal Finance & Credit Co., 133 A. 59, 150 Md. 298, 1926 Md. LEXIS 30 (Md. 1926).

Opinion

Offutt, J.,

delivered the opinion of the Court.

This appeal presents, a single question, which, is whether the claim of the holder of a conditional contract of sale, which is in default, to the possession of property covered thereby, is superior to the lien of a mechanic for charges for repairs thereto, and that question arises from the following facts, which have been agreed upon by the parties.

On August 26th, 1924, the Stallings Ripple Chevrolet Company, Inc., sold an automobile to Leo Rossiter, under a conditional sales contract for $784.87, of which $261.67 was paid in cash, and the balance was to be paid in twelve monthly instalments of $43.60 each, the title to remain in the vendor or its assigns until the purchase price had been paid in full, and on the same day the vendor assigned that contract to the Federal Finance and Credit Company. That .contract in part provides:

“Title to the car and equipment thereon shall not pass by delivery to the buyer, but shall remain in the seller or his assigns unless the following conditions are performed by the buyer: That the said note be paid in installments as it falls due; that the car be not removed from the state in which the buyer now resides, or be sold or encumbered or otherwise disposed of, or be used for carrying passengers for hire without the written *300 consent of the holder, or be used for carrying intoxicating liquor; that the car be kept insured against loss by fire and theft with insurance companies acceptable to the seller, for not less than the amount owing and until fully paid, payable to and to protect the interest of the seller; that the car be operated and used in conformity with all laws and ordinances applicable thereto and to indemnify and save harmless the seller from any and all loss, or damage to persons or property caused by said car or by the use and operation thereof to which the seller might possibly be subjected; that the car be kept in good condition and that any equipment, repairs or accessories placed upon the said car shall be at the buyer’s expense and become a component part thereof and included in the terms of this agreement; and that all charges, taxes and license fees against the said ear be paid by the buyer. * * * It is agreed and acknowledged that the within contraes covers all conditions and agreements between the parties, either oral or written with reference to the property sold.”

After its execution the contract was duly recorded on August 29th, 1924, in the Superior Court of Baltimore City, and thereafter two instalments were paid on account of the balance due under it, but after those payments the vendee defaulted; andt the Federal Finance- and Credit Company sought to recover possession of the automobile under the power conferred by the contract. But it found that it was in the possession of S. II. Goldenberg*, trading’ as the Motor Sales and Service Company, who held it as security for storage and repair charges amounting to $120, and he refused to surrender it before those charges had been paid. These charges were incurred upon the order of the vendee, who directed Goldenlberg to take the machine, which was broken down on one of the streets of Baltimore City, to his garage and repair it, and the repairs which he made, and for which he charged $113.95, were “absolutely necessary” to put it in running condition. And when he made them he had no actual knowledge of any elaim or lien against it.

*301 Upon the refusal of the appellant to deliver the automobile to it, the appellee brought an action in replevin against him for the recovery thereof, in the Baltimore City Court, where, as a result of subsequent proceedings, a judgment for tbe plaintiff for tbe property replevined or for $480.85 damages was entered, and from that judgment the defendant appealed.

The plaintiff offered one prayer which was granted, and the defendant two, which were refused, and those rulings are the subject of the first and only exception found in the record. The plaintiff’s prayer submitted the proposition that if the jury found that it had purchased for value the conditional sales contract covering the automobile sold by tbe Stallings Ripple Chevrolet Company to Rossiter, and tbat be bad defaulted in bis payments thereunder, that it was entitled to the possession of the automobile, and that its claim thereto was superior to the lien of the appellant for charges for storage and repairs to it. The defendant’s first prayer was a demurrer to the evidence, while. its second prayer was in substance the converse of the plaintiff’s prayer, and it, as well as its first prayer, was based upon tbe theory tbat since under the contract the vendee was bound to keep tbe machine in good repair, tbat tbe vendor waived its claim in favor of such persons as, at the request of the vendor, made such repairs to it as were necessary to keep it in “good condition.”

In dealing with those conflicting propositions, it becomes necessary to construe both the contract and the statute, defining the relative rights of vendors under conditional sales contracts and the holders of liens for repairs on the property covered by the conditional sales contracts, because in particular cases those rights must depend upon the terms of the contract as well as upon the statute. When the case of Meyers v. Auto Co., 143 Md. 107, was decided, there was no statute in force in this state which gave to the person repairing ah automobile a lien for bis charges, since the Act of 1918, ch. 403, then in force, only allowed liens for storage charges *302 and for furnishing tires and accessories, and the lien of tho repairman for charges for repairs rested upon the common law. The Court in that case therefore was dealing with the priorities between common law and statutory liens. But after that case was decided the Act of 1918 was amended by chapter 417 of the Acts of 1921, by giving to persons rebuilding or repairing automobiles a lien on the same for their charges for such rebuilding or repair. By section 55 of article 21, Bagby’s Code, the appellant was at the time he rendered the service upon which his lien claim is based charged with notice of the appellee’s rights under the conditional contract of sale. So that the rights of both parties rest wholly upon the contract and the statute, and must ■be measured by tbe terms thereof. By the words of the statute the repairman’s lien which it allows is expressly subordinated to the rights of the holder of a conditional sales contract on the property repaired. That is to say, the same statute which gives the lien subordinates it to the rights of persons holding the title to it under a conditional sales contract, so that, unless there is found in the terms of the contract itself some provision which would estop the vendor or his assignees from asserting their claim against a garageman who claimed a lien for necessary repairs to the automobile, and we have found none in this ease, by the express terms of the statute the lien of the garageman for storage and repair ■charges is subordinate to the rights of the holder of the conditional sales contract covering the property stored or repaired. And unless the contract itself conferred upon the vendee the right tO' subject the chattel to a lien for repairs, no act of his could confer npon the garageman any lien on or claim against the property stored or repaired superior to that of the vendor.

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Bluebook (online)
133 A. 59, 150 Md. 298, 1926 Md. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldenberg-v-federal-finance-credit-co-md-1926.