McKenzie Flying Service, Inc. v. York

503 P.2d 478, 263 Or. 538, 1972 Ore. LEXIS 433
CourtOregon Supreme Court
DecidedNovember 24, 1972
StatusPublished

This text of 503 P.2d 478 (McKenzie Flying Service, Inc. v. York) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKenzie Flying Service, Inc. v. York, 503 P.2d 478, 263 Or. 538, 1972 Ore. LEXIS 433 (Or. 1972).

Opinion

HOLMAN, J.

Plaintiff brought an action for the reasonable value of labor and materials furnished in the repair of a Cessna aircraft owned by defendant. Defendant [540]*540counterclaimed for damages for conversion to the aircraft. At trial, after completion of all evidence, the court directed a verdict in favor of plaintiff both on its complaint and on defendant’s counterclaim. Defendant appeals and asserts as error the directed verdicts.

In 1966 defendant purchased the aircraft in question from plaintiff on a conditional sales contract. Plaintiff assigned the contract to the manufacturer’s financing subsidiary, Cessna Finance Corporation (Cessna). The aircraft, together with five others, was then leased by defendant to another corporation, Fly Mooney, of which defendant was the principal stockholder. The plane was used for rental and flying lessons and on May 31, 1968, was damaged in a landing by a student pilot. After examination by an adjuster of defendant’s insurer, the defendant ordered the aircraft repaired by plaintiff. After repair, it was returned to defendant on July 25, 1968. The amount of plaintiff’s repair bill was $1,325.00.

A check for $1,071 was issued by defendant’s insurer, which check represented the amount of the loss less a deductible amount provided by the policy and a minor item for which the company had no coverage. The check was delivered to Cessna, the legal owner, by the insurer and was made out both to Cessna and to defendant. Cessna forwarded the cheek to defendant on October 10 for his signature and defendant endorsed it and returned it to Cessna. Defendant testified that he thought Cessna was going to send the check to plaintiff. However, there were three monthly payments due Cessna on the contract of purchase and Cessna applied part of the check on defendant’s contract to bring it current and sent the balance of $452.68 to defendant, who received the money on November 8.

[541]*541In the meantime, on August 20, plaintiff filed a nonpossessory lien upon the aircraft for the amount of its charge. In the latter part of October plaintiff made inquiry concerning the insurance proceeds and was erroneously informed by the insurance adjuster that defendant had received the full amount of the insurance. Shortly thereafter, on November 6, plaintiff, through its president, Mr. Euberg, directed the sheriff to seize the aircraft and to foreclose the lien in conformance with the statute.

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Related

Fuentes v. Shevin
407 U.S. 67 (Supreme Court, 1972)
Mustola v. Toddy
456 P.2d 1004 (Oregon Supreme Court, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
503 P.2d 478, 263 Or. 538, 1972 Ore. LEXIS 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenzie-flying-service-inc-v-york-or-1972.