Skivington v. Studer Tractor and Equipment Co.

350 P.2d 729, 1960 Wyo. LEXIS 54
Wyoming Supreme Court·Decided March 29, 1960·No. No. 2906·Published

Opinion

Mr. Justice HARNSBERGER

delivered the opinion of the court.

Claiming that defendants - had defaulted under the terms of a conditional sales contract by failing to pay monies due thereunder, plaintiff took possession and sold the equipment involved, applying the net proceeds of the sale to payment of the debt, and then sued defendants for the remaining deficiency of $30,490.05, and in a second cause of action for recovery of additional sums upon an open account. Defendants alleged they had given, and plaintiff had accepted, an absolute and unconditional assignment of defendants’ claim against a third party amounting to $21,727.50; that defendants were entitled to a credit upon their conditional sales contract in that amount; that by reason of such a credit they were not in default under the terms of the contract; and that the sale of the equipment had been- improperly made and was a fraud upon them. Defendants made no defense against the claim upon the open account. Following a trial without jury, the court found generally in favor of the [730]*730plaintiff and against the defendants; that the sale of the equipment which brought $19,000 was fairly conducted and the property was sold for a fair value; that the assignment by defendants to the plaintiff of their claim against the third party was conditional to be applied as a credit only for such amounts as might be collected, and at the date of the trial no amount had been so collected; that plaintiff, in open court, had offered to reassign the account to the defendants and that such reassignment should be made. Thereupon the court gave judgment in favor of the plaintiff and against defendants in the full amount upon the open account and also for the alleged deficiency, interest and attorneys’ 'fees totaling the sum of $32,429.95, together with judgment for costs taxed at $13.55. Defendants have appealed.

While appellants have separately listed various points in support of their appeal, there are but two of their contentions which require consideration: (1) That the court erred in deciding the assignment of defendants’ claim of $21,727.50 against the third party was not accepted by plaintiff as a credit in that amount upon defendants’ debt to plaintiff, and (2) in holding plaintiff properly sold the equipment and that the purchase price received did not make the sale fraudulent. This amounts to saying the judgment of the court was not supported by the evidence or that it was contrary to the evidence. The defendants also insist that because the assignment was unconditional in transferring to plaintiff the entire and absolute title to the assigned claim, defendants were entitled, as a matter of law, to be credited with the full amount of defendants’ claim against the third party.

The crux of the matter does not lie in whether the assignment was absolute and unconditional so as to transfer the entire legal title to the claim, but rather whether the assignment was accepted by plaintiff as a credit in its face amount upon defendants’ debt to plaintiff. The rule of law applicable is briefly stated in 6 C.J.S. Assignments § 73, p. 1124, where it is said:

“As a general proposition, in order to render a transaction effective as an assignment either at law or in equity, it must be communicated to the as-signee, and his acceptance or assent thereto must be given in some manner. * * * ”

Similarly in 4 Am.Jur., Assignments, § 86, p. 299, it is stated:

“It is necessary, in order to make an assignment effective, that there be not only a delivery of the thing assigned, but an actual or constructive acceptance thereof by the assignee. * * * ”

The only portions of the evidence bearing upon the plaintiff’s acceptance of the assignment as a payment by defendants upon the conditional sales contract are hereinafter set forth at some length.

On the direct examination of defendant Skivington, he identified the assignment which was marked Exhibit “B”, offered and received in evidence. The witness then testified:

“Q. Recalling Defendants’ Exhibit ‘B’, Mr. Skivington, which you identified to the Court as an assignment, did you deliver that to Mr. Studer? A. Yes, sir, I handed it to him personally. (Emphasis supplied.)
“Q. Did he accept it? A. Yes.”

The above constitutes the whole of the direct testimony produced by defendants to prove plaintiff had accepted the assignment as payment on the conditional sales contract of the sum of $21,727.50. There is nothing further in the defendants’ evidence to indicate whether the acceptance referred to in the answer of the witness was anything more than a mere delivery of the instrument evidencing the assignment.

When the same witness was called in rebuttal by plaintiff for cross-examination as an adverse witness, he further testified as follows:

“Q. Isn’t it true, Mr. Skivington, that Mr. Studer told you that he would help you collect that money from Shawano? A. Yes.
[731]*731"Q. And that he needed an assignment for that purpose? A. Yes.
“Q. And that if you would give him an assignment he would do the best he could to help you collect your money? Wasn’t that what he said? A. He said he would collect the money because he had attorneys by the year; it would be less costly.
“Q. He said he would do that for you, didn’t he? A. Not for me. He said he would collect the money.”

Later on the same witness testified:

“Q. Did Mr. Studer ever say he would give you $20,000 or $21,000 credit on your note for this assignment? A. Give it back? No.
“Q. Did he ever say he would give you credit ? A. I couldn’t answer that yes or no.”

To say the least, viewing this rebuttal testimony as a whole, it seems somewhat, evasive and gave plain inference that Studer had not accepted the assignment as a credit upon the debt due.

In the witness’ later rebuttal testimony it is true the following took place:

“Q. As a matter of fact, what he did say, Mr. Skivington, was, wasn’t it, that, ‘I’ll help you collect it; I’ll use the services of my attorneys and do the best I can for you to collect it’? Isn’t that what he said to you? A. No. What he said: He said that he would collect the money, as he had attorneys hired by the year.
“Q. He didn’t agree to give you a credit on the note for it, did he? A. He just took the assignment.
“Q. He didn’t agree to give you a credit for it, did he? A. I would say he did, yes.
“Q. You say he did. When did he agree to that? A. Probably at the time when he handed me the assignment. [This statement contradicts his former testimony that he handed the assignment to plaintiff.]
“Q. Sometime in March — or May of 1958? A. May or June.
“Q. What did he say to you, George, when he agreed to take this assignment and when he agreed to give you the $21,000 credit, what did he say ? A. He said he would collect it.
“Q. He said he would collect it. That is what he said, isn’t it? A. Yes, sir.
“Q. He didn’t say, 'I’ll give you a credit,’ did he? A.

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Skivington v. Studer Tractor and Equipment Co., 350 P.2d 729, 1960 Wyo. LEXIS 54 (Wyo. 1960).

350 P.2d 729 (Skivington v. Studer Tractor and Equipment Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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