Paparo v. Consumer's Financial Services, Inc.

56 Mass. App. Dec. 183
CourtMassachusetts District Court, Appellate Division
DecidedOctober 27, 1975
DocketNo. T-30843
StatusPublished

This text of 56 Mass. App. Dec. 183 (Paparo v. Consumer's Financial Services, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paparo v. Consumer's Financial Services, Inc., 56 Mass. App. Dec. 183 (Mass. Ct. App. 1975).

Opinion

Canavan, J.

This is an action of contract in contract in which the plaintiff seeks to recover on Count I of the declaration against the defendant General Accident Group (hereinafter called "General”) under a motor vehicle liability insurance policy issued by it to the plaintiff and on Count II of the declaration against the defendant Consumer’s Financial Services, Inc. (hereinafter called "Consumer’s”) for an alleged failure to make a timely reinstatement of the plaintiff’s motor vehicle insurance coverage. The answer is a general denial, payment and a denial of timely payment.

At the trial there was evidence tending to show that Consumer’s held the plaintiff’s note of December 28, 1972. The note provided in part that:

"Upon failure to pay any installment when due . . . the entire unpaid balance shall become immediately due and payable and the holder may forthwith effect [185]*185the cancellation of any of said policies. The maker hereby irrevocably appoints the holder the maker’s true and lawful attorney to execute and deliver all documents and perform all acts necessary or appropriate to effect cancellation of the policies and to collect, receive and receipt for any return premium . . . which amounts shall be applied toward satisfaction of this note rendering any surplus to the person entitled thereto”.

The plaintiff defaulted on the payments of his note, Consumer’s exercised its power of attorney and on or about April 17, 1973 sent the plaintiff a cancellation notice effective May 11, 1973. On May 11, 1973 Consumer’s sent a cancellation notice in a form prescribed by the Registry of Motor Vehicles to said Registry and a like notice to insurer General and to the plaintiff. In these notices the plaintiff’s first name Domenic is spelled “Dominic”; no middle initial appears; the last name and address is stated correctly; the registration number is stated accurately; the reason given for cancellation was “default of payment in premium finance contract”; the effective date of cancellation given was “May 11, 1973” and in the space calling for the policy number the word “unknown” appeared. The Registry of Motor Vehicles under date of May 11, 1973, sent written notice of revocation of registration to “Dominic Paparo a/o Domenic L. Paparo, 28 Hull Street, Boston, Massachusetts.” The notice stated accurately the registration number of the plaintiff’s motor vehicle and the name of the insurer. The plaintiff denied receiving a copy of this revocation from the Registry. On May 17, 1973, Consumer’s received from the plaintiff payment in full by a check dated May 2, 1973 and on the same day Consumer’s requested reinstatement of the cancelled coverages from General. The request for reinstatement was not accepted by General who refunded a return premium of $186.55 on said policy to Consumer’s on or about August 15, 1973. On October 29, 1973 the plaintiff suffered damages to his motor vehicle which would have been [186]*186covered under the policy, in the amount of $1,106.00. He notified General of said accident and for the first time learned that his policy of insurance had never been reinstated. Consumer’s returned to the plaintiff the return premium of $186.55 by check dated November 7, 1973. On December 11, 1973 the plaintiff commenced this action in contract. On December 17, 1973 the plaintiff cashed the return premium check that he received from Consumer’s.

On November 27, 1974 the Registry of Motor Vehicles, in written notices addressed to Dominic Paparo, 28 Hull Street, Boston, Massachusetts, and General, ruled that the notice of cancellation to become effective on May 11, 1973 was incorrect because notice was sent in the name of Dominic Paparo, whereas the name in the Registry application read Domenic L. Paparo and that it would be necessary to forward another notice of cancellation. These notices contained the correct registration number of the plaintiff’s motor Vehicle.

The defendant Consumer’s filed 7 requests for rulings and the trial justice acted on them and made the following findings of fact:

"I find that the insurance policy of the plaintiff with the defendant General Accident Group (hereinafter called General) was effectively cancelled on May 11, 1973. I find that this cancellation was never annulled by the defendant, General. I therefore treat the defendant General’s requests for rulings as waived and find for the defendant General on Count I of the plaintiff’s declaration.
"I find that upon receiving notice of default dated April 17, 1973 and effective May 2, 19732 in installment insurance premiums, the plaintiff, Paparo, on May 2, 1973 sent to the defendant Consumer’s Financial Services, Inc., (hereinafter called "Consumer’s”), [187]*187a check in full payment of the unpaid premiums which was received by Consumer’s on May 17, 1973. Thereafter the defendant, Consumer’s, sent to the defendant General on May 17, 1973 a request for reinstatement which was received by the defendant General, after expiration of the grace period. G.L. c. 90, §34K. G.L. c. 255C, §31. The defendant, General, on or about August 15, 1973 sent to the defendant, Consumer’s, the amount of unearned premium totalling $185.55. This money Consumer’s accepted under a power of attorney granted it by the plaintiff. Subsequent to the acceptance, on October 29, 1973, the plaintiff was involved in an accident whereby his motor vehicle was damaged in the amount of $1,106.
“The plaintiff sought reimbursement for his damage from defendant, General, and was then notified for the first time that his policy of insurance had never been reinstated. On November 7, 1973 the plaintiff received a check representing unearned premium from defendant, Consumer’s, in the amount of $186.55 which the plaintiff cashed.
“On November 27, 1974, the Registry of Motor Vehicles ruled that Notice of Cancellation dated May 11, 1973 was incorrect because notice was sent in the name of Dominic Paparo whereas application read Domenic L. Paparo.
"Original notice from Registry dated May 11, 1973 reads Dominic Paparo a/o Dominic L. Paparo. Both original notice and invalidation notice of Registry purport to refer to vehicle bearing Mass. Reg. No. 2H0497, which is the registration number of the vehicle involved in the case at bar.
"I find that by virtue of the contractual relationship between the plaintiff and the defendant Consumer’s, the defendant was obligated either to secure the reinstatement of the insurance coverage on the plaintiff’s motor vehicle or, in the alternative, to notify the plaintiff seasonably that he was without insurance coverage. This obligation the defendant breached.”

[188]*188The court found for the plaintiff [against Consumer’s] on Count II of his declaration.

The defendant Consumer’s claims to be aggrieved by the court’s rulings on requests numbered 4, 6 and 9.3

The requests for rulings raise the following three questions:

(1) Whether at the time of the plaintiff’s loss, his policy of insurance issued by General, was in full force and effect.

(2) Whether the determination by the Registrar of Motor Vehicles that a notice of cancellation is not in compliance with the provisions of G.L. c. 175, sec. 113A(2) invalidated such a notice of cancellation.

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Bluebook (online)
56 Mass. App. Dec. 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paparo-v-consumers-financial-services-inc-massdistctapp-1975.