Seppala v. Neal

36 N.W.2d 186, 323 Mich. 697, 1949 Mich. LEXIS 519
CourtMichigan Supreme Court
DecidedFebruary 28, 1949
DocketDocket No. 44, Calendar No. 44,232.
StatusPublished
Cited by7 cases

This text of 36 N.W.2d 186 (Seppala v. Neal) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seppala v. Neal, 36 N.W.2d 186, 323 Mich. 697, 1949 Mich. LEXIS 519 (Mich. 1949).

Opinion

*699 Carr, J.

Plaintiff brought this action in circuit court to recover damages for injuries sustained by him in an automobile accident. At the time of the occurrence he was a guest passenger in a car driven by Raymond LaCroix, which was proceeding in a westerly direction on the north side of a four-lane highway in Kent county. At the same time Robert Ryder was driving a car in the opposite direction, and, desiring to stop at a hamburger stand on the north side of the highway, he turned to the left in front of the LaCroix car. A collision resulted, in which plaintiff was injured. It was his claim in the trial court that the automobile driven by Ryder was owned by the defendant Neal, and was being driven with the knowledge and consent of the latter. He further claimed that the proximate cause of the collision was the negligence of Ryder in making the turn without reasonable and proper observations as to oncoming traffic. Defendant denied ownership of the car, insisting that it had been sold to Ryder approximately 5 days before the accident. The trial in circuit court was largely concerned with this issue.

At the conclusion of plaintiff’s proofs, defendant made a motion for a directed verdict on the ground that the testimony failed to show that Neal was the owner of the car at the time the accident occurred. The trial court denied the motion and submitted the question to the jury, which determined it in favor of the plaintiff. The questions of negligence involved were also decided in plaintiff’s favor, and a verdict returned in the sum of $12,000. Thereafter defendant moved for a new trial, on the grounds that the court erred in denying the motion for a directed verdict, and that the finding of the jury was against the weight of the evidence. This motion was denied, and defendant has appealed.

The principal question before us is whether the trial court was in error in submitting to the jury the *700 question as to defendant’s ownership of the car at the time of the accident, which occurred on April 13, 1941. On behalf of defendant it is insisted that there was no dispute in the testimony relating to the matter, and that it was conclusively established on the trial.that the defendant had sold the car to Ryder on or about April 8th preceding the accident. Plaintiff directs attention to alleged contradictions and inconsistencies in the testimony, and to the manner in which the alleged sale was handled, insisting that on the record a jury question was presented. The trial judge, as indicated by his opinion denying the motion for a new trial, came to the conclusion that it was his duty to allow the jury to determine the issue, and that there was sufficient evidence to support the finding.

At the time of the transaction in question, defendant Neal was operating a garage, and Robert Ryder, who was a young man 20 years of age, was employed by him. Some negotiations were had between them with reference to the purchase of the car, and an agreement was reached under which payment was to be made therefor by deductions from Ryder’s wages. It is undisputed also that defendant had in his possession a certificate of title, delivered to him by the former owner from whom he had purchased the car. At the time of the trial the signature of Ryder appeared in two places on the back of this certificate. He testified, in substance, that on the 8th of April he affixed his signature in one of such places but could not recall which. As we read defendant’s testimony, it was apparently his claim that he delivered the title to Ryder at the time of the transaction, that the latter wished to have his mother sign with him because of his nonage, that Ryder retained the certificate for several days, and that he finally returned it to defendant, after the accident, in order that it might be forwarded to the office of the secre *701 tary of State for the purpose of obtaining a new certificate in the name of Ryder, or of Ryder and his mother.

Section 4660, 1 Comp. Laws 1929, as amended by Act No. 65, Pub. Acts 1931, and by Act No. 160, Pub. Acts 1935 (Comp. Laws Supp. 1940, § 4660, Stat. Ann. § 9.1474), provides in part as follows:

“In the event of the sale or other transfer after October 1, 1921, of the ownership of a motor vehicle for which a certain certificate of title has been issued as aforesaid, the holder of such certificate shall indorse on the back of same an assignment thereof with warranty of title in the form printed thereon with a statement of all liens or encumbrances on said motor vehicle, sworn to before a notary public or some other person authorized by law to take acknowledgments, and deliver the same to the purchaser or transferee at the time of the delivery to him of such motor vehicle, which shall show the payment or satisfaction of any mortgage or lien as shown on the original title. The purchaser or transferee, unless such person is a dealer licensed under section 14 of this act, shall within 10 days thereafter present such certificate, assigned as aforesaid, to the secretary of State, accompanied by a fee of one dollar, whereupon a new certificate of title shall be issued to the assignee: * * * Said licensed dealer shall on selling or otherwise disposing of said motor vehicle, execute and deliver to the purchaser thereof an affidavit of conveyance or assignment in such form as the secretary of State shall prescribe, to which shall be attached the assigned certificate of title received by such dealer.”

This section was further amended by Act No. 272, Pub. Acts 1945, but obviously we are not concerned in this case with such amendment. It has been repeatedly held that the provisions of the statute above *702 quoted must be followed in the sale of an automobile, and that, unless the certificate of title is delivered as required, the seller remains the owner, and as such may be held liable for the negligence of the purchaser in the operation of the vehicle. See Endres v. Mara-Rickenbacker Co., 243 Mich. 5; Schomberg v. Bayly, 259 Mich. 135; Kimber v. Eding, 262 Mich. 670; Noorthoek v. Preferred Automobile Ins. Co., 292 Mich. 561. As before noted, defendant in the instant case insists that he followed the provisions of the statute and delivered the certificate of title to Ryder prior to the accident, while plaintiff insists that the testimony was such as to raise an issue of fact which the jury properly determined in his favor.

In view of the conflicting claims of the parties, a consideration of the testimony becomes necessary. Called as a witness for plaintiff, Ryder testified in part as follows:

“I remember taking the certificate of title to my mother’s home for her signature. As far as I can remember it was after the accident. I wouldn’t swear to it. The title was given to me to take home and have my mother sign as beneficiary by Mr. Neal. As far as I can remember, that is the first time I had possession of the title.
“Q. You took it home, then, right after it was given to you by Mr. Neal?
“A. I don’t know if it was in the same hour, or next day, or what time it was.

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36 N.W.2d 186, 323 Mich. 697, 1949 Mich. LEXIS 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seppala-v-neal-mich-1949.