Madden v. Herzog

257 P.2d 779, 42 Wash. 2d 666, 1953 Wash. LEXIS 494
CourtWashington Supreme Court
DecidedMay 28, 1953
Docket32228
StatusPublished
Cited by1 cases

This text of 257 P.2d 779 (Madden v. Herzog) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madden v. Herzog, 257 P.2d 779, 42 Wash. 2d 666, 1953 Wash. LEXIS 494 (Wash. 1953).

Opinion

Finley, J.

Plaintiff, Paul Madden, instituted this lawsuit designed to obtain from defendant Herzog the purchase price of a certain truck or, in the alternative, to have the court declare that Madden had a lien on the truck superior to any that might be asserted by the National Bank of Washington. On stipulation of the parties during the pendency of this appeal, the action was dismissed as to the bank.

The first question is whether the sale of the truck was to Herzog, making him Madden’s debtor, or whether the sale was to Simmons Motors, of Bremerton, Washington (now bankrupt), making the bankrupt firm Madden’s debtor. The second closely related question is whether title to the truck was reserved in Madden, pending payment of a check tendered to Madden’s agent (automobile salesman Teel) by Herzog. The check was drawn by Simmons Motors with Madden designated payee. It covered the purchase price of the truck.

The facts are relatively simple. Defendant Ken Herzog wished to acquire a truck. He called on T. C. Simmons, Jr., d/b/a Simmons Motors (Packard Sales Service) at Brem *667 erton. • At the time, Mr. Simmons had no truck suitable for Herzog’s particular needs. Herzog expressed the desire to look for a suitable truck in Seattle, with the understanding that its purchase would be financed by Mr. Simmons. Shortly thereafter, Herzog went to the University Motors in Seattle, and talked with salesmen Roland Hyatt and Ward Teel. The University Motors had no trucks suitable for Mr. Herzog’s purposes.

Mr. Teel suggested that his brother-in-law, Paul Madden, had a truck for sale for $1,250, which might be suitable, but that the sale would have to be made on the basis of cash or a certified check. Herzog inquired whether University Motors would finance the deal. He was advised that they would finance only seven or eight hundred dollars of the amount required. After talking with Mr. Madden, the price of the truck was reduced to $1,225. Herzog was allowed to drive the truck to Bremerton and to keep it over the week end. There, he worked out arrangements with Mr. Simmons to finance the purchase of the truck.

Herzog returned to Seattle on the following Monday or Tuesday with a check, drawn on the Simmons Motors, payable to Paul Madden, which was turned over to Mr. Teel, the salesman at University Motors. The certificate of title to the truck, endorsed in blank, was turned over to Mr. Herzog. He returned to Bremerton and delivered the certificate of title to Mr. Simmons. A conditional sales contract was executed between Simmons Motors, as vendor, and Herzog, as vendee. Herzog retained possession of the truck. Simmons sold and assigned the conditional sales contract to the National Bank of Washington.

Several days later, Mr. Teel turned the check over to Paul Madden, who deposited it in his bank a couple of days later. In due course, the check was returned to Madden, marked unpaid because of insufficient funds in the account of drawer. Thereafter, Madden telephoned the Simmons Motors. He was told there had been a mix-up of some kind, and it was suggested that the check be deposited again. Madden redeposited the check, and again it was returned *668 unpaid because of insufficient funds. Madden then called at the bank. He claims that someone at the bank advised him to sit tight for a few days and the matter would be worked out. He did so, but the check was never paid. After Simmons Motors went into bankruptcy, Madden sued Herzog for the purchase price of the truck.

Madden’s basic- contentions in the trial court and here on appeal are: (a) That the truck was sold to Herzog, not to Simmons Motors; (b) that it was understood title to the truck would not pass until the check was cleared.

Herzog contends to the contrary.

The trial court’s findings, in part, were as follows:

“11. That on or about April 10, 1951, this defendant, Ken Herzog, acting as the agent of T. C. Simmons and Eleanor V. Simmons, his wife, took possession of one 1949 Studebaker Truck, the property of the plaintiff, in Seattle, Washington, and upon taking possession of the same tendered and delivered to the plaintiff the check of T. C. Simmons drawn on the Bremerton Branch of the National Bank of Washington, in the sum of $1225.00, which check was accepted by the said plaintiff as payment for said truck. That at said time and place the said plaintiff delivered to the defendant, Ken Herzog, the title certificate to said truck, which the plaintiff had endorsed in blank, without naming the transferee therein. That this defendant took said truck and said title certificate to the City of Bremerton, Washington, where he delivered the title certificate to the defendant, T. C. Simmons and retained possession of the truck. .

“III. That thereafter the defendant, T. C. Simmons, executed a conditional sale contract for the purchase of said truck by the defendant, Ken Herzog, and at all times after the execution of said contract the defendant, Ken Herzog, was lawfully in possession of said truck as a contract purchaser thereof, and said contract has never been cancelled, revoked or forfeited. That said contract has been assigned by the said Simmons to the defendant, National Bank of Washington, the owner and holder thereof.

“IV. That the aforesaid check in the sum of $1225.00 made payable to the plaintiff and issued by T. C. Simmons, has not been paid for the reason that the said T. C. Simmons had insufficient funds in the bank upon which the same was drawn, for payment of the same.”

*669 On the basis of the above-quoted findings, the trial judge concluded that plaintiff’s lawsuit should be dismissed. Judgment was entered accordingly. Madden has appealed.

Madden’s assignments of error are as follows:

“1. The Court erred in finding that the truck was sold by Appellant Madden to Simmons rather than the Respondent Herzog.

“2. The Court erred in holding the title of the Respondent National Bank of Washington was superior to Appellant Madden’s rights as an attaching creditor.

“3. The Court erred in holding the transaction between Simmons and Respondent Herzog was a conditional sales contract rather than a chattel mortgage.

“4. The Court erred in failing to enter judgment in favor of Appellant against Respondent Herzog for the purchase price of the truck and a judgment against the Respondent bank determining its rights to be inferior to those of Appellant.”

The testimony is conflicting as to (a) whether the truck was sold to Simmons or to Herzog, and (b) whether title passed when the check was received by Teel. Herzog testified that the understanding between him and Simmons was that the truck would be purchased by Simmons and sold to Herzog on a conditional sales contract.

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Related

Eder v. Nelson
262 P.2d 180 (Washington Supreme Court, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
257 P.2d 779, 42 Wash. 2d 666, 1953 Wash. LEXIS 494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madden-v-herzog-wash-1953.