In re Browning Crane & Shovel Co.

72 Ohio Law. Abs. 592
CourtDistrict Court, N.D. Ohio
DecidedJuly 8, 1955
DocketNo. 70895
StatusPublished

This text of 72 Ohio Law. Abs. 592 (In re Browning Crane & Shovel Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Browning Crane & Shovel Co., 72 Ohio Law. Abs. 592 (N.D. Ohio 1955).

Opinion

[593]*593OPINION

By FRIEBOLIN,

Referee in Bankruptcy:

To the Honorable Judges of the District Court:

C. D. Friebolin, one of the referees of said court, do hereby certify that, in the course of the above entitled proceedings before me, I considered the petition for reclamation of the Dart Truck Co. (hereinafter sometimes referred to as “Dart”) for possession of two crane carrier chassis (sometimes referred to as “chassis” or “crane carriers”) claiming title thereto and alleged to be in possession of the debtor at the time the debtor filed its petition for an arrangement under Chapter XI of the Act, 11 U. S. C. A. §701 et seq., and continuing in the possession of the debtor-in-possession when appointed as such.

The debtor-in-possession (sometimes hereinafter referred to as “Browning”) filed answer denying Dart’s title and right to possession. No issue was made of actual possession by the debtor nor of the debtor-in-possession.

After extensive hearings had, oral argument and briefs presented, I made findings of fact and conclusion of law, and thereon entered an order denying and dismissing Dart’s petition for reclamation. Said order is transmitted herewith and marked Ex. A.

The question presented is, primarily, whether Dart had title to the two crane carrier chassis, on Dec 9, 1953, which was the date upon which the debtor filed its petition for an arrangement and when the debtor was duly appointed debtor-in-possession, by this court.

The collateral, but more immediate questions were (1) whether the transaction, the contract of sale, disregarding the Ohio Vehicle Law, vested title in the debtor about Nov. 6, 1953; and (2) whether under the Ohio Vehicle Law, such title in the two chassis, vested in the debtor conceding that possession was delivered to the debtor.

Since my findings of facts and conclusions of law embody a description of the pleadings, the issues presented, and a general summary of the evidence, it will probably be sufficient to embody the document herewith; a complete transcript of the evidence is transmitted herewith, marked Ex. D; the exhibits are also transmitted herewith, marked Ex. E.

THE PLEADINGS

Dart filed a petition for reclamation alleging that on or about Nov. 6, 1953, Dart delivered possession of the two chassis to Browning; that they were delivered under an agreement that Browning deliver to Dart, chattel mortgages on said chassis and notes securing the purchase price, and upon receipt thereof to deliver title of the chassis to Browning.

It is further alleged that Browning never delivered the required mortgages and notes and that Dart had not delivered title to the aforesaid chassis; that the price of one chassis was $12,800, upon which Browning paid $1,280 in cash, leaving a balance of $11,520; and the price of the other was $13,200, of which $1,320 was paid, leaving a balance due of $11,880, to which Dart is now entitled.

It is alleged, also, that one chassis — price $12,800 and $11,520 due— was sold by Browning before the arrangement proceeding was begun and that the debtor has agreed with Dart that, in consideration of Dart’s [594]*594releasing such purchaser from any claim Dart might have, debtor has agreed to segregate the first $11,520 of the sale price to await determination by this court of the rights of the parties hereto.

Dart prays for possession of the one chassis in debtor’s possession at the daté of the bankruptcy proceeding (Dec. 9, 1953) and for an order to pay to it the sum of $11,520 received upon the sale of the other chassis, as stated in its petition herein.

Browning in its answer admits the sale of the second chassis and the agreement to segregate the money received upon its sale as stated in' the Dart petition; admits the sale and delivery of the two crane carrier chassis, denies any agreement to give a mortgage as security, denies nondelivery of title and Dart’s right to possession.

THE ISSUE

As appears from the pleadings, the evidence and briefs of counsel, the primary issue is: In whom was title to the two chassis at the date of bankruptcy, that is, on Dec. 9, 1953? In turn, this depends upon (1) the terms of the agreement of purchase between the parties, (2) its effect, in view of the bankruptcy proceedings and possession by the debtor a’t or before that date, and (3) its effect in view of the Ohio Certificate of Title Law.

THE EVIDENCE — GENERALLY

‘The article in question: A chassis or carrier chassis, as here involved, is the underpart, the base or frame, of a truck crane or power crane as manufactured and sold by Browning. This carrier chassis, like an ordinary automobile chassis, has wheels, gas tank, lights, and a cab, etc. But it also has certain other distinctive features built according to specifications furnished by Browning (Ex. 119) which will adapt the chassis to the purpose for which Browning makes a truck crane which it sells. This distinctive equipment consists of substantially heavy material — weight sometimes 25 tons — outriggers and screw jacks as shown by Ex. 2, 117 and 201. The completed truck crane as factored and sold by Browning is shown in Ex. 10, 11 and 116.

' Both parties introduced oral and documentary evidence relating to the purchase agreement for the two chassis. There is in this respect a conflict of testimony in respect to Dart’s claimed agreement of a mortgage as a condition precedent to passing title.

Upon the question of the effect of the delivery of possession of the chassis to the debtor prior to bankruptcy and its effect in view of the Ohio Certificate of Title Law, §4505.01 et seq, R. C., both parties called witnesses respecting the enforcement of that act in connection with vehicles of this kind, and some paper exhibits. In essence this involves interpretation of certain sections of that act. Oral testimony on behalf of the petitioner, Dart, was given by three witnesses, including 15 paper exhibits; on behalf of the debtor' by five witnesses, including 13 paper exhibits. The transcript comprises 355 pages, with 28 paper exhibits.

FINDINGS OF FACT

I find that:

1. On or about Oct. 15, 1953 (see Webster R. 24 and Ex. 101 and 102) Mr. Gilbertson, purchasing agent for Browning, in Cleveland, called [595]*595Dart at Kansas City, by telephone and spoke to Mr. Webster, treasurer of Dart, advising him that Browning needed two more crane carrier chassis similar to the one previously purchased by Browning from Dart. This conversation finally culminated in the oral agreement to purchase the two carrier chassis involved in this proceeding.

2. Prior thereto, Browning had purchased from Dart four carriers all upon open account with Vz per cent discount if payment made in 10 days. The first purchase was in April, 1953 — there were two purchases in April; one in June, 1953 and one in August. The first three were paid for promptly; the first two within the discount period. The August purchase was not paid for until Oct. 1953.

3. In the telephone conversation of Oct. 15, 1953, Mr. Gilbertson for Browning told Mr. Webster of Dart that Browning needed 30 days for payment “to accommodate this sale” (R. 25). Mr. Webster understood that Browning’s reason for wanting 30 days after delivery for payment, was to enable Browning “to complete their production and their financing sources, and in return to pay us.” (R. 36) Mr.

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Bluebook (online)
72 Ohio Law. Abs. 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-browning-crane-shovel-co-ohnd-1955.