Knisley v. Wright

387 P.2d 154, 192 Kan. 279, 1963 Kan. LEXIS 415
CourtSupreme Court of Kansas
DecidedDecember 7, 1963
Docket43,413
StatusPublished
Cited by3 cases

This text of 387 P.2d 154 (Knisley v. Wright) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knisley v. Wright, 387 P.2d 154, 192 Kan. 279, 1963 Kan. LEXIS 415 (kan 1963).

Opinion

The opinion of the court was delivered by

Parker, C. J.:

This appeal stems from a controversy over the validity of the sale of a new house trailer under the provisions of G. S. 1959 Supp., 8-135.

The case was submitted to the district court on a stipulation of facts which will be highly summarized for purposes of discussing the issues presented for review.

On June 10, 1959, defendant sold plaintiffs a new 1959 Tulsan house trailer for a cash price of $4,045.00, pursuant to a conditional *280 sales contract. There was no down payment. The deferred payment balance was $5,377.63. As additional security plaintiffs gave defendant a real estate mortgage.

At the time of the sale defendant was actively engaged in the business of buying, selling or exchanging new house trailers, held a dealer’s contract for the sale of Tulsan house trailers from the manufacturer, and had an established place of business in the City of Wichita.

The trailer was delivered to plaintiffs on June 12, 1959. Defendant also delivered to plaintiffs a manufacturer’s statement of origin which was duly assigned to the plaintiffs. Plaintiffs never applied for or received a certificate of title to the house trailer.

Plaintiffs made payments totaling $765.00, the last payment being made on March 8, 1960. After April 8, 1960, the note, contract, and mortgage were in default.

On or about May 12, 1960, plaintiffs advised defendant they had a party interested in purchasing the house trailer and requested the defendant to consider such party if possible. Defendant then asked plaintiffs for the Kansas Certificate of Title. They informed him they had never applied for or obtained a Kansas Certificate of Title and that they still had the statement of origin. Thereupon plaintiffs executed a power of attorney to defendant and gave him the statement of origin and requested that he apply for issuance of the Kansas Certificate of Title in their names. In conformity with this request defendant procured the certificate of title in their names and made application for registration of the trailer.

Defendant while dealing in Mobil Homes had not registered with the Motor Vehicle Department of the State of Kansas as a registered or franchise dealer for the Tulsan Mobil Homes [had not made application for a dealer’s license plate]. Pie became a registered franchise dealer on June 1, 1960. On June 8, 1960, the certificate of title to the trailer was issued to plaintiffs.

On or before May 26, 1960, because of plaintiffs’ default, defendant repossessed the house trailer and posted notices of sale. On June 11, 1960, defendant purchased the trailer at the sale for $2,500.00. The sale was properly and legally consummated in all respects.

On June 14, 1960, plaintiffs brought an action to set aside the sale of the house trailer, together with the real estate mortgage securing the payment of the purchase price, and to recover payments *281 made in the sum of $765.00, on grounds that such sale was fraudulent and void under G. S. 1959 Supp., 8-135.

Defendant filed an answer and cross petition in which he sought judgment against the plaintiffs in the sum of $2,072.63 plus interest and the foreclosure of the mortgage on the real estate.

On September 26, 1962, the district court resolved the issues and rendered judgment for the defendant on his cross petition in the sum of $2,618.18 plus interest and ordered the mortgage foreclosed and the property therein described foreclosed and sold in the manner provided by law.

Thereupon plaintiffs perfected the instant appeal.

Turning to the merits of the appeal it may now be stated the appellants contend that in order to make a valid sale, a franchise dealer must apply for and obtain dealers license plates under the provisions of G. S. 1959 Supp., 8-136 (a) or register each new vehicle separately and deliver a certificate of title properly assigned for all vehicles sold as provided in G. S. 1959 Supp., 8-135.

The contentions thus advanced require consideration of the motor vehicle registration statutes in effect at the time of the transaction on June 10, 1959. For that- reason no reference need be made to G. S. 1961 Supp.

G. S. 1959 Supp., 8-135 (b) provided in part:

“. . . Upon the transfer and sale of any vehicle by any person or dealer, the new owner thereof shall, within ten (10) days from date of such transfer of said vehicle, make application to the department for registration of said vehicle and after such time it shall be unlawful for the owner or any other person to operate such vehicle upon the highways of this state unless said vehicle has been registered as provided in this act and for failure to make application for registration as provided in this section, a penalty of two dollars ($2) shall be added: . . .”

It will be noted that this provision places, a responsibility on the “new owner” but none on the “dealer.”

G. S. 1959 Supp., 8-135 (c), so far as here material, provided:

“. . . Certificate of title: No vehicle required to be registered hereunder shall be registered or number plates issued therefor, either original issue, or duplicate, unless the applicant for registration thereof shall at the same time present satisfactory evidence of ownership and make application for an original certificate of title for such vehicle. (1) Said application for certificate of title shall be made by the owner or his agent upon a blank form to be furnished by the department and shall contain all liens or encumbrances thereon, and such other information as the department may require: . . .”

It should also be noted that the provision just quoted places *282 responsibility on the new owner as to proof of ownership but no responsibility is placed on the dealer.

G. S. 1959 Supp., 8-135 (c) (3) provided:
“. . . Dealers shall execute, upon delivery to the purchaser of every vehicle, a bill of sale stating the lien or encumbrances thereon, in accordance with form prescribed by the commission for all vehicles sold by them. Upon the presentation to the commission or its authorized agents of a bill of sale executed in the form prescribed, by a manufacturer or dealer for a new vehicle, sold in this state, a certificate of title shall be issued in accordance with the provisions of this act: Provided, however, That simultaneously with the application for certificate of title, there is also an application for registration, and in no other cases. . . .”

The foregoing provision places a responsibility upon the dealer to issue a bill of sale to the purchaser of a new vehicle. The dealer’s responsibility ceases when tire bill of sale is issued. It is then the responsibility of the purchaser to apply for a certificate of title and registration.

G. S. 1959 Supp., 8-135 (c) (6) provided:

“. . .

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Bluebook (online)
387 P.2d 154, 192 Kan. 279, 1963 Kan. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knisley-v-wright-kan-1963.