Hertz Corp. v. Paloni

619 P.2d 1256, 95 N.M. 212
CourtNew Mexico Court of Appeals
DecidedNovember 6, 1980
Docket4439
StatusPublished
Cited by13 cases

This text of 619 P.2d 1256 (Hertz Corp. v. Paloni) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hertz Corp. v. Paloni, 619 P.2d 1256, 95 N.M. 212 (N.M. Ct. App. 1980).

Opinion

OPINION

LOPEZ, Judge.

Hertz sued Paloni in district court for damages arising from lost revenue and use of one of its rental vehicles which had been stolen and was recovered on Paloni’s business premises, the Standard Truck Stop in Albuquerque. Paloni counterclaimed for storage fees and also requested damages for abuse of process. The vehicle had been abandoned at Paloni’s truck stop. Paloni had been aware of its presence there for about ten months. When he learned that Hertz owned the car, he notified Hertz that he had it on his lot. Hertz then replevied the car and, having obtained possession of it, caused its action to be dismissed, ex parte. The case was reinstated on Paloni’s motion. The court granted Paloni summary judgment on his claim for storage fees, and dismissed all other claims, of both parties, with prejudice. Hertz and Paloni both appeal.

In May of 1978, a Pontiac Le Mans was stolen from Hertz’ office in Denver, Colorado. Paloni discovered this car had been left on his premises around May 15th. He moved the car for safe-keeping, locked it and placed signs in the windows saying “Held for Storage.” In early June, he notified the Albuquerque Police Department that the car was on his property. After that, he heard nothing from them. Nine months later, in March 1979, he notified the Bernalillo County Sheriff’s Department that this car, of unknown ownership, was sitting on his property. Captain Fullington, whom he had notified, made a quick investigation and learned that the car had been reported stolen and that it belonged to Hertz. The theft report had been filed by Hertz in Denver in November of 1978. Paloni immediately notified Hertz in Albuquerque that he had the car. He wanted storage fees of $5.00 per day, however. In response, Hertz obtained a writ of replevin and recovered the car. In order to obtain this writ, Hertz’ agent, Michale Couch, had filed an affidavit stating that he believed Paloni would conceal, dispose of, or waste the property during the pendency of the action. Later, in his deposition, Couch stated under oath that he had no reason to believe this. On April 19, 1979, Hertz, having obtained possession of the car, moved to have its compl'aint dismissed with prejudice. The court granted the motion. Although no answer had been filed, as of that date, Paloni’s attorney had filed an entry of appearance and a notice to take the deposition of Mr. Couch. Couch had been served with a subpoena on April 11th. On Paloni’s motion, the district court reopened the lawsuit. Hertz amended its complaint to seek damages for loss of use of its automobile. Paloni filed his counterclaim. The court dismissed with prejudice Hertz’ complaint and Paloni’s claim of abuse of process. It granted Paloni summary judgment on his claim for storage fees.

The issues before us are: 1. whether summary judgment against Hertz on its claim of wrongful detention was proper; 2. whether Paloni should have been awarded storage fees on summary judgment; and 3. whether the district court should have awarded summary judgment against Paloni on his abuse of process claim. We affirm the district court on the third issue only. Summary judgment is proper if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. N.M.R.Civ.P. 56(c), N.M. S.A. 1978. Summary judgment will not be granted if the court finds evidence sufficient to create a reasonable doubt as to the existence of a genuine issue. Pharmaseal Laboratories, Inc. v. Goffe, 90 N.M. 753, 568 P.2d 589 (1977), citing Goodman v. Brock, 83 N.M. 789, 498 P.2d 676 (1972).

I. Hertz’ claim for damages for loss of use.

Because there is a genuine issue of material fact in dispute, summary judgment on Hertz’ claim was improper. The factual issue in dispute is whether Paloni is in the business of garaging, storing or repairing vehicles for the public.

The sole claim for damages for loss of use in the amended complaint is that Paloni wrongfully detained the car in that he violated § 66-3-203, N.M.S.A. 1978. Paloni asserts that this statute does not apply to him. The statute reads:

An operator of a place of business for garaging, repairing, parking or storing vehicles for the public, in which a vehicle remains unclaimed for a period of thirty days, shall, within five days after the expiration of that period, report in writing to the New Mexico state police at Santa Fe and the sheriff of the county in which the unit is stored, setting forth the make of car, model-year, [and] engine, serial and vehicle numbers of the vehicle unclaimed. A person who fails to report a vehicle as unclaimed in accord with this subsection forfeits all claims and liens for its parking or storing and is guilty of a misdemeanor punishable by a fine of not more than twenty-five dollars ($25.00).

In essence, Paloni claims that he is not “an operator of a place of business for garaging, repairing, parking or storing vehicles for the public”. Id. His business is the operation of the Standard Truck Stop. He does lease space on the premises to a wrecker service and to a business which repairs vehicles. There is evidence that Paloni allows truckers who use his stop to park their cars while they are on their runs, and that he has, on at least one other occasion, charged storage fees for a vehicle that was parked there. The question of whether Paloni is in the business of garaging, repairing or parking, vehicles for the public is a question of fact. It is a material fact because Hertz’ wrongful detention claim is based on the statute. Since the claim is limited to this statute, other theories of liability for wrongful detention have not been considered.

II. Paloni’s counterclaim for storage fees.

As a matter of law, Paloni has no claim for storage fees. The district court erred in granting him summary judgment on this issue.

Hertz maintains that Paloni’s action for storage fees is barred by § 66-3-203. Paloni asserts that this statute is not applicable to him. Clearly, if § 66-3-203 does apply to Paloni, it would bar his suit, due to his undisputed failure to notify the New Mexico State Police and the county sheriff that he was in possession of an unclaimed vehicle within the time limit prescribed in that statute.

However, even if § 66-3-203 does not apply to Paloni, he has no cause of action. Paloni asserts no statutory right to storage fees. His claim is based on common law. A person who, in the absence of a mutual contract of bailment, lawfully acquires the possession of another’s personal property is generally considered to be a constructive bailee. Mack v. Davidson, 55 App.Div.2d 1027, 391 N.Y.S.2d 497 (1977); United States Fire Insurance Co. v. Paramount Fur Service, Inc., 168 Ohio St. 431, 156 N.E.2d 121 (1959). A constructive bailee is a person who acquires possession of another’s property by mistake, accident or through force of circumstances under which the law imposes upon him the duties of a bailee. Armored Car Service, Inc. v. First National Bank of Miami, 114 So.2d 431 (Fla. App.1959); Capezzaro v. Winfrey, 153 N.J. Super. 267, 379 A.2d 493

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Bluebook (online)
619 P.2d 1256, 95 N.M. 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hertz-corp-v-paloni-nmctapp-1980.