Krind v. Barlow

44 V.I. 293, 48 U.C.C. Rep. Serv. 2d (West) 143, 2002 WL 1765787, 2002 V.I. LEXIS 20
CourtSupreme Court of The Virgin Islands
DecidedJune 24, 2002
DocketCase No. SC. 66/02
StatusPublished
Cited by3 cases

This text of 44 V.I. 293 (Krind v. Barlow) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krind v. Barlow, 44 V.I. 293, 48 U.C.C. Rep. Serv. 2d (West) 143, 2002 WL 1765787, 2002 V.I. LEXIS 20 (virginislands 2002).

Opinion

ROSS, Judge

MEMORANDUM OPINION AND ORDER

(June 24, 2002)

THIS MATTER comes before the Court on Plaintiffs Action for Damages and Defendant Don Bigspring’s Motion to Dismiss for failure to state a claim.

I. FACTS

On January 3, 2002, Plaintiff and Defendant Barlow were traveling in opposite directions on Rattan Road when Defendant Barlow crossed the center line of the road forcing Plaintiffs vehicle off the road. He then hit Plaintiffs vehicle on the passenger side causing damage totaling $2,376.20. Defendant Barlow was issued five citations: Negligent Driving by failure to stay as far left as practicable (#452784), Operating an Uninsured Motor Vehicle (#452786), Operating an Unregistered Motor Vehicle (#452785), Operating a Motor Vehicle without a Driver’s License (#452787) and Failure to Transfer Ownership (#452788). According to the records of the Bureau of Motor Vehicles of the V.I. Police Department, the vehicle driven by Defendant Barlow, a 1988 Suzuki Samurai, C-620, V1N JSUJC51414278442, was registered to Defendant Bigspring at the time of the accident.

[295]*295Plaintiff brought an Action for Damages against the driver, Defendant Carl Barlow, and the registered owner of the vehicle, Defendant Don Bigspring. Defendant Bigspring asks this Court to Dismiss Plaintiff’s claim against him, alleging that he sold the vehicle in question to Defendant Barlow, and thus bears no liability for Plaintiffs damages.

II. LIABLITY FOR FAILURE TO REGISTER THE CHANGE OF OWNERSHIP

The motor vehicle registration laws of the U.S. Virgin Islands require that the owner’s name and address appear on the registration certificate of a vehicle. 20 V.I.C. § 332(b)(3). When an owner sells his vehicle to another, 20 V.I.C. § 335 requires the seller to register the change of ownership with the Police Commissioner. The issue before this Court is whether the registered owner of an automobile is liable for damages caused by the negligent operation of that automobile if he fails to register a transfer of the automobile’s ownership with the Police Commissioner, as required by 20 V.I.C. § 335.

The facts and issues presented in the case sub judice are similar to those in Rivera v. National Car Rental System, Inc. 14 V.I. 481 (D.C.V.I. 1977). In that case, National Car Rental Systems sold a car to Rivera and failed to register the change in ownership with the Commissioner of Public Safety as required by 20 V.I.C. § 335.1 Consequently, the vehicle was still registered to National when Rivera negligently caused an accident while driving it. The District Court held that under the statute in question, it was incumbent upon the transferor to register the change in ownership with the Police Commissioner, and National’s failure to do so made it liable to the third party for damages sustained by Rivera’s negligent operation of the vehicle.

The Rivera court reached this conclusion by analyzing the legal effect of both 11A V.I.C. § 2-401 and 20 V.I.C. § 335. The Uniform Commercial Code, as codified at Title 11A of the Virgin Islands Code, determines the transfer of title to goods generally. Rivera at 483-484. 11A V.I.C. § 2-401 provides in pertinent part that:

[296]*296Unless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods, despite any reservation of a security interest and event though a document of title is to be delivered at a different time or place ... Id. at 484.

When determining ownership of personal property for purposes of insurance coverage, a court should consider the law of sales, U.C.C. § 2-401 in particular. Id. This is not the case with automobile sales where there is special legislation governing the transfer and operation of motor vehicles. Id. However, unless such legislation declares that noncompliance with its provisions makes the transfer void, title to the vehicle passes to buyer upon delivery pursuant to 11A V.I.C. § 2-401. Id. Therefore, the Rivera court found it necessary to examine 20 V.I.C. § 335 “in order to determine whether it penalizes non-compliance with its provisions with avoidance of the transfer.” Id.

In 1977, when the Rivera case was decided, 20 V.I.C. § 335 provided that

if ownership of a motor vehicle is changed, such change shall be registered by the vendor with the Commissioner of Public Safety, and endorsed on the registration license. The operation ‘of any motor vehicle before such registration of change of ownership has been made shall immediately make void the license theretofore issued, and the property shall be considered as remaining in the vendor. Id. (Emphasis added)

The court concluded that 20 V.I.C. § 335 does not regulate the transfer of ownership as between the parties, but it does require that once an ownership change occurs, the seller must register the change before the buyer is allowed to operate the vehicle on the public highways. Id. at 485. Any operation of the vehicle prior to the registration of the changed ownership voids the license and the property “shall be considered as remaining in the vendor.” Id. quoting Ivanyi v. Osborne, 7 V.I. 177 (Mun. Ct. 1969). Because of this language, the District Court states that “section 335 is more like those mandatory statutes which courts hold must be fully complied with before a seller is released from liability, rather than those enactments which are considered mere police regulations, not affecting the transfer of title.” Id. The court further [297]*297reasons that “since § 335 is mandatory and specifically places ownership in the vendor where there is noncompliance with its provisions, this section, rather than U.C.C. § 2-401 governs the determination of ownership for purposes of deciding liability of the owner in a personal injury action, resulting from the operation of the vehicle.” Id.

In 1984 the Legislature amended 20 V.I.C. § 335(a) to provide in pertinent part that

If the ownership of a motor vehicle is transferred, the transferor , of such motor vehicle shall, within 24 hours of such transfer, notify the Police Commissioner of such transfer ... Upon receipt of such notice, the Commissioner shall note such transfer of ownership on the registration license of the transferor, shall cancel such registration license by marking the word “cancelled” across the face thereof, and shall void the license plates issued with such registration license subject to the provisions of section 332 of this chapter; provided, however, that such cancellation and voiding shall not be effective until forty-eight (48) hours after the Commissioner has received such notice of transfer. The motor vehicle so transferred may be operated during such forty-eight (48) hour time period; provided, however, that such motor vehicle has applied for and received a registration license and license plates for such motor vehicle pursuant to the provisions of section 332 of this chapter.

When the legislature amended § 335, it took out the language on which the Rivera

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Cite This Page — Counsel Stack

Bluebook (online)
44 V.I. 293, 48 U.C.C. Rep. Serv. 2d (West) 143, 2002 WL 1765787, 2002 V.I. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krind-v-barlow-virginislands-2002.