Ross v. Leuci

194 Misc. 345, 85 N.Y.S.2d 497, 1949 N.Y. Misc. LEXIS 1675
CourtCity of New York Municipal Court
DecidedJanuary 4, 1949
StatusPublished
Cited by6 cases

This text of 194 Misc. 345 (Ross v. Leuci) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross v. Leuci, 194 Misc. 345, 85 N.Y.S.2d 497, 1949 N.Y. Misc. LEXIS 1675 (N.Y. Super. Ct. 1949).

Opinion

McCullen, J.

In this cause of action tried by the court, in which all parties waived the jury which had been demanded, the plaintiff seeks to replevin his stolen 1942 Dodge automobile or have judgment for its value. The Dodge automobile is at present in the possession of the plaintiff through an undertaking for replevin issued to the Sheriff of the City of New York on October 31, 1947, in the amount of $2,400.

Both the plaintiff and the^defendant Barth claim title to the Dodge automobile in the case. The defendant Leuci, who is the property clerk of the police department of the city of New York, has no interest in the case except as a stakeholder.

Plaintiff claims that the automobile was taken from him on October 21,1947, by one Greene, who is alleged to have been recommended to him by a friend who said Greene could get a new car for him. On that day Greene is alleged to have told plaintiff he could get him immediate delivery on a new Pontiac. As part of the deal plaintiff is alleged to have agreed to take an allowance of $1,200 on his Dodge car. Plaintiff signed the back of the statement of transfer (reverse side of registration certificate) which reads, Owner’s Statement: I am the owner-of the motor vehicle described on the reverse side hereof, or member of the firm or officer of the corporation owning same, and have disposed of vehicle as shown above ”. Signed “ Herman Boss ”.

Plaintiff on that day, October 21st, gave possession of the car to Greene. Plaintiff on that day received a paper from Greene reading as follows:

“ October 21, 1947, Dodge priced $1200, I, James Greene, agree to take 1942 Dodge car on trade for 1947 Pont, with a $1100 bal. on Pont, to be paid when car is delvered. Pont, to be delivered October 22, 1947, total price of Pont. $2300.”

In the afternoon of October 21,1947, Greene arrived at defendant Barth’s gas station at 23rd Street and Tenth Avenue, Man[347]*347hattan, where the defendant Barth also conducts a business as a licensed, used-car dealer and offered Barth the car for sale. Barth is alleged to have stated he would pay $950. Greene went away and returned the next morning, October 22, 1947, and is alleged to have stated he would take the $950 plus $8 which he had spent for certain white rims. Barth thereupon checked with the police department to learn if it was a stolen car and had the car checked by an agency for mortgages and other liens. He is alleged to have received a clearance from both the police department and the agency. About noontime on the same day Greene is alleged to have returned and to have given Barth the registration certificate which was signed in blank by Herman Ross, the registered owner.

Barth testified that this was the first time he saw the registration certificate and he then inquired of Greene about the difference in the name and was told that he, Greene, had bought the car from Ross. Barth testified that under those circumstances he was obliged to have Greene sign the Motor Vehicle Bureau form, M.V.51, which is: ‘ ‘ If this vehicle is sold to an individual -and is resold before a new registration is secured, Form M.V.51 must be prepared by each subsequent purchaser and seller and must accompany the new application and this stub * * * Instruction No. 10, Form M.V.51 states that it is to be used by a person other than a dealer when the vehicle is sold. Greene was not a dealer. Barth also received a bill of sale from Greene and gave Greene a- check for $958.

On October 24,1947, a stolen car alarm was sent out on plaintiff’s complaint to the police department. On October 27th the car was taken from Barth by the police department of the city of New York.

. Defendant Barth claims he is an innocent purchaser for value without notice of any infirmities in the title of the car, or in other words, a bona fide purchaser for value; that he is entitled to the possession of the car; that plaintiff transferred the registration certificate which is the indicia of ownership to Greene, and also transferred the actual possession of the car to Greene; that although at the time plaintiff transferred title and possession to Greene, he was led to do so by fraud, still this gave Greene a voidable title which enabled Greene to transfer title to Barth, before the title was voided by plaintiff. A bona fide purchaser for value may obtain a good title from one who has a voidable title, if he obtains such title before it is voided (Crocker v. Crocker, 31 N. Y. 507). This is further provided for [348]*348in section 105 of the Personal Property Law as follows: “ Sale by one having a voidable title. Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith, for value, and without notice of the seller’s defect of title.”

In the case of Island Trading Co., Inc., v. Berg Bros., Inc. (209 App. Div. 63), a man by the name of Bey had bought merchandise for plaintiff, who had issued a letter of credit to him on a bank in New York, which provided that the bank would cash drafts drawn by Bey, if the drafts were accompanied by parcel post receipts showing shipment of the goods. Bey bought goods from the defendant. The defendant packed the merchandise, addressed the packages to the plaintiff and mailed them by parcel post to the plaintiff in Manila. The defendant sent invoices to Bey. Bey, thereafter, went to the defendant and said he could get the cash to pay them, if they would give him the post-office receipts. Upon this representation, defendant gave Bey the post-office receipts and he took them to the bank on which the letter of credit was drawn, and presented them with invoices made out from himself to the plaintiff and got the money. Suffice it to say, the defendant did not get the cash from Bey and it wired the Manila Post Office through the New York Post Office and stopped delivery of the merchandise in Manila. When Island Trading Company sued the defendant he claimed that the goods were stolen from him by Bey, and that title never passed from him.

(The plaintiff in the case at bar is making the same claim, viz., that Greene stole the car from him.) The Appellate Division rejected the claim in the Island Trading case (supra), holding that the defendant had transferred a voidable title and not a void one. “ Moreover, even if it be assumed that the goods were fraudulently procured by Murat Bey, his title was not void, but voidable merely at the option of the defendant, provided such option be exercised before the transfer of the goods to a bona fide purchaser for value and without notice. (Pers. Prop. Law, § 105, as added by L. 1911, ch. 571.) Not only were the goods transferred to such a purchaser before such repudiation, but they were transferred and the safeguards which the plaintiff had imposed for its protection were complied with through the knowledge and assistance of the defendant, who made it possible for said Murat Bey to obtain from the plaintiff the purchase price of the goods by intrusting to Murat Bey the parcel post receipts. * * * For the like reasons, [349]*349the. defendant is estopped from denying plaintiff’s title in the goods.”

The Court of Appeals affirmed (239 N. Y. 229, 233) for the same reasons adding “ As between two innocent victims of the fraud, the one who made possible the fraud on the other should suffer.”

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Cite This Page — Counsel Stack

Bluebook (online)
194 Misc. 345, 85 N.Y.S.2d 497, 1949 N.Y. Misc. LEXIS 1675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-leuci-nynyccityct-1949.