Holtzlander v. Brownell

453 N.W.2d 295, 182 Mich. App. 716
CourtMichigan Court of Appeals
DecidedMarch 20, 1990
DocketDocket 105996
StatusPublished
Cited by26 cases

This text of 453 N.W.2d 295 (Holtzlander v. Brownell) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holtzlander v. Brownell, 453 N.W.2d 295, 182 Mich. App. 716 (Mich. Ct. App. 1990).

Opinion

Per Curiam.

On October 27, 1987, following a bench trial, the Newaygo Circuit Court entered judgment allowing plaintiffs Zenith and Mary Holtzlander to recover a number of motor vehicles which had been included in business property *718 previously sold under contract to defendants John and Doris Brownell. The judgment also awarded $1,500 to defendants on their counter-complaint for overtime wages earned by John Brownell while employed by plaintiffs. Defendants appeal as of right. We affirm.

In June of 1982, the parties contracted for the sale of the business known as Zenith Used Cars and Auto Parts, located in While Cloud, Michigan. When defendants subsequently defaulted on the contract, plaintiffs filed suit in January, 1984, for breach of contract and received a default judgment against defendants.

On November 6, 1984, in settlement of the default judgment, the parties again contracted for the sale of the business. The property conveyed under the contract included seventy-five junk cars used for parts.

In 1985, defendants filed for bankruptcy, and the business property conveyed under the November 6, 1984, contract was abandoned by the bankruptcy trustee.

On October 8, 1986, plaintiffs filed suit to recover the business property, and on May 22, 1987, defendants filed their counter-complaint, dated May 5, 1987. As part of their counter-complaint, defendants claimed that their contract of sale with plaintiffs was void because plaintiffs refused to transfer title to the motor vehicles conveyed under the contract. Further, defendants sought $17,370.54 in regular and overtime wages allegedly earned by defendant John Brownell while employed by plaintiffs from 1976 to June of 1982. Defendants’ counter-complaint also alleged claims for conversion and breach of contract.

Defendants argue that the trial court erred in finding, as a matter of law, that the title transfer provisions of the Michigan Vehicle Code, MCL *719 257.1 et seq.; MSA 9.1801 et seq., do not require the signature of the seller and delivery of said title to the buyer at the time of transfer of an inoperable motor vehicle sold for junk and salvage purposes. Defendants contend that the trial court should have rescinded the sale contract and ordered monies paid by defendants under the contract returned to defendants, where plaintiffs failed to properly transfer title in accordance with the code on the seventy-five junk cars used for parts.

MCL 257.233(4); MSA 9.1933(4) of the vehicle code requires:

The owner shall indorse on the back of the certificate of title an assignment of the title with warranty of title in the form printed on the certificate with a statement of all security interests in the vehicle or in accessories on the vehicle and deliver or cause the certificate to be mailed or delivered to the purchaser or transferee at the time of the delivery to the purchaser or transferee of the vehicle. The certificate shall show the payment or satisfaction of any security interest as shown on the original title.

Failure to comply with the title transfer provisions of § 233 renders the sale of a motor vehicle void. Bayer v Jackson City Bank & Trust Co, 335 Mich 99, 105; 55 NW2d 746 (1952); Whitcraft v Wolfe, 148 Mich App 40, 50; 384 NW2d 400 (1985), lv den 425 Mich 865 (1986).

With respect to an "owner,” as defined under MCL 257.37; MSA 9.1837, who sells a motor vehicle to a "dealer,” as defined under MCL 257.11; MSA 9.1811, for junk or salvage, the code provides, as an alternative, a more informal method of title transfer, pursuant to MCL 257.242; MSA 9.1942, which provides:

*720 An owner may sell a vehicle to a dealer for salvage by writing on the face of the certificate of title in bold print the word, scrap, along with the signature of the owner or authorized agent, and by then assigning the certificate of title to the dealer purchasing the vehicle. A certificate of title shall not again be issued for the vehicle.

Further, MCL 257.235a; MSA 9.1935(1), as amended by 1980 PA 398, provides:

Notwithstanding any other provision of this act or of Act No. 94 of the Public Acts of 1937, as amended, being sections 205.91 to 205.111 of the Michigan Compiled Laws, a licensed dealer or junk dealer who purchases a vehicle for the purpose of destroying or junking the vehicle may accept a certificate of title which has been assigned to the transferor by a properly indorsed assignment on the back of the certificate of title. The dealer shall write the word “junk” on the face of the certificate of title above the signature of the dealer or an authorized agent of the dealer and forward the certificate to the secretary of state, together with a fee of $4.00 instead of a fee or tax otherwise applicable. This section shall not apply to a transfer unless the fee and certificate of title are received by the secretary of state within 10 days after the date of the vehicle’s purchase by the dealer. A certificate of title shall not again be issued for the vehicle.

The code also provides for subsequent transfers of salvage or junk vehicles between dealers, as in this case, pursuant to MCL 257.217c(2); MSA 9.1917(3)(2), which provides in pertinent part:

If a dealer, other than a vehicle scrap metal processor, acquires ownership of a late model vehicle which is a distressed vehicle from an owner and receives an assigned certificate of title, the dealer shall surrender the assigned certificate of *721 title to the secretary of state and apply for a salvage certificate of title within .5 days after the dealer receives the assigned certificate of title. The dealer may sell the vehicle to another dealer by assigning the salvage certifícate of title to the buyer.

Given the plain language of the vehicle code, we find no basis for the trial court’s conclusion that the code’s title transfer provisions are inapplicable to inoperable or salvage vehicles.While the word "may,” which is a discretionary word, Macomb Co Road Comm v Fisher, 170 Mich App 697, 700; 428 NW2d 744 (1988), is used in the emphasized sentence of § 217(c)(2) above, we construe that sentence to read that a dealer may sell to another dealer and, if he or she does, then the salvage certificate of title must be properly assigned to the purchasing dealer. We do not find that a reasonable interpretation of the applicable vehicle code sections would permit a seller of an inoperable motor vehicle to comply or not comply with the code’s title transfer provisions at the seller’s discretion. Statutes are to be construed so as to avoid absurd or unreasonable consequences. Joy Management Co v Detroit, 176 Mich App 722, 731; 440 NW2d 654 (1989), lv den 433 Mich 860 (1989).

Thus, plaintiffs’ failure to properly transfer title in the junk cars to defendants was a breach of plaintiffs’ duties under the sale contract. However, the agreement was not merely for the purpose of acquiring the junk cars alone.

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

Related

Harbor Xpress LLC v. Yatooma Oil LLC
Michigan Court of Appeals, 2023
American Door Systems Inc v. Jennifer Fiore
Michigan Court of Appeals, 2023
Roland Tindle Do v. Legend Health Pllc
Michigan Court of Appeals, 2023
Vista Property Group LLC v. Debra Schulte
Michigan Court of Appeals, 2020
Carla Ellen Skaates v. Nathan Kayser
Michigan Court of Appeals, 2020
2 Crooked Creek LLC v. Jim L Frye
Michigan Court of Appeals, 2020
Chalk Supply LLC v. Ribbe Real Estate LLC
Michigan Court of Appeals, 2020
Meemic Insurance Company v. Louise M Fortson
Michigan Court of Appeals, 2018
Jacqueline Nowicki-Hockey v. Bank of America
Michigan Court of Appeals, 2017
Chesterfield Exchange, LLC v. Sportsman's Warehouse, Inc.
572 F. Supp. 2d 856 (E.D. Michigan, 2008)
Able Demolition, Inc v. City of Pontiac
739 N.W.2d 696 (Michigan Court of Appeals, 2007)
Lewis v. Horace Mann Insurance
410 F. Supp. 2d 640 (N.D. Ohio, 2005)
Heidtman Steel Products, Inc. v. Compuware Corp.
164 F. Supp. 2d 931 (N.D. Ohio, 2001)
Omnicom of Michigan v. Giannetti Investment Co.
561 N.W.2d 138 (Michigan Court of Appeals, 1997)
Martino v. Cottman Transmission Systems, Inc.
554 N.W.2d 17 (Michigan Court of Appeals, 1996)
Admiral Insurance v. Columbia Casualty Insurance
486 N.W.2d 351 (Michigan Court of Appeals, 1992)
Pye v. Chrysler Corp.
475 N.W.2d 461 (Michigan Court of Appeals, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
453 N.W.2d 295, 182 Mich. App. 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holtzlander-v-brownell-michctapp-1990.