Maryland Credit Finance Corp. v. Campbell

195 A. 277, 38 Del. 575, 8 W.W. Harr. 575, 1937 Del. LEXIS 60
CourtSuperior Court of Delaware
DecidedOctober 4, 1937
DocketAction of Replevin No. 4
StatusPublished

This text of 195 A. 277 (Maryland Credit Finance Corp. v. Campbell) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Credit Finance Corp. v. Campbell, 195 A. 277, 38 Del. 575, 8 W.W. Harr. 575, 1937 Del. LEXIS 60 (Del. Ct. App. 1937).

Opinion

SPEAKMAN, J.,

delivering the opinion of the Court:

By stipulation .of counsel and the testimony of witnesses produced at the trial, it appeared that on March 18, 1935, the defendant, Roy J. Campbell, entered into a conditional sale contract with Joseph Motor Company for the purchase of one Ford Tractor Truck, for the sum of $1202.00, of which $247.00 was paid in cash and the balance was evidenced by one note for $955.00 which was to be paid [580]*580in twelve monthly installments, one being for $80.50 and the other eleven being for $79.50 each. It was provided in the contract that the title to the truck should not pass to the purchaser until' all installments of the note and other sums therein referred to, chargeable to the purchaser, were paid, with the right reserved by the seller to retake the truck in the event the purchaser defaulted in the payment of any indebtedness due to the seller, and that the truck would be kept at Milford, Delaware. That Milford lies partly in Sussex County and partly in Kent County, and that Milford as referred' to in the contract meant that portion of Milford which is located in Sussex County. On the day of the execution of the contract it was duly assigned by the seller to the plaintiff, the Maryland Credit Finance Corporation.

The contract was filed in the office of the Recorder of Deeds for Sussex County, on March 23, 1935, in the manner and within the time provided by law. Up to the time of the trial in this cause it had not been filed in any other filing district in this State.

On March 19, 1935, a certificate of title to the truck was issued in the name of the defendant by the Vehicle Commissioner of the State, on which was shown a lien or encumbrance of $955.00 in favor of the plaintiff, which was duly entered in the Lien Register Book in the office of the Vehicle Commissioner.

Between April 22, 1935, and October 4, 1935, the defendant made six payments to the plaintiff,' one of $80.50 and the others of $79.50 each, amounting in all to $477.00, which together with $247.00 paid in cash at the time of the execution of the contract aggregated $724.00, leaving a balance due on the contract and accompanying note of $478.00.

In December of 1935 the defendant made application [581]*581to the Joseph Motor Company for a reduction in the amount of his future payments, and during the same month a like application was made by both the defendant and Joseph Motor Company to the plaintiff.

The application was granted by the plaintiff, and as evidence thereof one of the plaintiff’s conditional sale contract forms was used by the plaintiff, in which were entered in a blank space above the printed words “Name of Dealer (Seller)” the words “Joseph Motor Company.” For the purpose of showing the amount due and the monthly payments the blank spaces in the contract form were filled in so that part of the contract form read “For a total time price of $584.50, payable as follows: $58.45 on or before delivery, leaving a deferred balance of $526.05, as evidenced by note payable * * * in installments of [$] 9 @ $58.45 on the same day of each successive month, or * * * and commencing January 18, 1936;” There were also entered therein after the printed words “Said property will be kept at the following address:” the words “Dover, Del.” The contract form was dated Dec. 4, 1935 and was signed and sealed by the defendant. An assignment form attached thereto, in which' the name of the plaintiff appeared as assignee, was signed by the Joseph Motor Company.

Neither this paper nor a copy thereof was ever filed in any filing district in this State.

Upon the change in the amount of the monthly payments the plaintiff closed on its books the original account against the defendant, and opened a new account following which, in its usual course of business upon closing of an account on its books, but without specific authority from the plaintiff, one of its employees caused the lien entered in the Lien Register Book in the office of the Vehicle Commissioner to be marked “Paid.”

The original contract note was never returned to the [582]*582defendant, nor was the certificate of title issued in his name by the Vehicle Commissioner ever delivered to him. They were both retained by the plaintiff.

On April 7, 1936, an execution was issued to Walter S. Cubbage, a Constable of Kent County, by one of the Justices of the Peace of said County, on a judgment of record in his office in favor of James C. Donovan and against Roy C. Campbell, the defendant in this case. Thereafter the truck in question was levied upon pursuant to the command contained in the execution, and on May 4, 1936, the truck was sold by. the Constable at public vendue to Bessie L. Campbell, the mother of the said Roy C. Campbell. At the time of the sale there was outstanding in the hands of another Constable of Kent County an execution issued by another Justice of the Peace of said County on a judgment of record in his office in favor of said Bessie L. Campbell and against the said Roy C. Campbell, under which the truck had been levied on, and which was junior to the lien of execution in the hands of the said Walter S. Cubbage, Constable. The amount received by the Constable at the sale was applied first in discharge of the amount of debt, interest and costs due on the Donovan judgment, and the balance on account of the judgment of Bessie L. Campbell. At the sale held by the Constable notice, was given to prospective purchasers by a representative, of the plaintiff that it “would replevin the truck if purchased.” No specific reason was given for such announcement. Before the sale, the Constable making the sale examined the records in the office of the Recorder of Deeds for Kent County for chattel mortgages and contracts, and went to the office of the Vehicle Comimissioner to see if any liens were entered there against the truck. He acquired no knowledge of any liens against the truck in Kent County, except the liens of the two executions.

It was not shown that James A. Donovan, one of the [583]*583execution creditors, or that Bessie L. Campbell, the other execution creditor and the purchaser of the truck at the Constable’s sale, had any knowledge of any outstanding conditional sale contracts concerning or involving the truck — Bessie L. Campbell, in fact, denied knowledge of any such contract.

After title to the truck was transferred to Bessie L. Campbell, she assigned her title to Roy J. Campbell, the defendant, and he was in the possession of the truck at the time of the issuance and service of the Writ of Replevin in this case. Upon the execution of the Writ of Replevin by the Sheriff, the defendant claimed property in the truck and retained possession of it by giving a property or return bond to the Sheriff.

It was agreed that if judgment was entered in favor of the plaintiff it would be for $360.10, or if in favor of the defendant it would be for costs.

The plaintiff in its brief states that the points of law raised by the plaintiff involve:

1. The effect of recording and satisfying a lien in the Automobile Lien Register Book in the office of the Secretary of State [meaning Vehicle Commissioner] at Dover, Delaware. .

2. Effect of new agreement extending payments on conditional sale contract.

• 3. What constitues removal from a filing district.

4. Estoppel of defendant to assert adverse title.

The defendant contends:

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Cite This Page — Counsel Stack

Bluebook (online)
195 A. 277, 38 Del. 575, 8 W.W. Harr. 575, 1937 Del. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-credit-finance-corp-v-campbell-delsuperct-1937.