Stevens v. Rock Springs National Bank

577 P.2d 1374, 1978 Wyo. LEXIS 286
CourtWyoming Supreme Court
DecidedApril 21, 1978
DocketNo. 4801
StatusPublished
Cited by1 cases

This text of 577 P.2d 1374 (Stevens v. Rock Springs National Bank) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Rock Springs National Bank, 577 P.2d 1374, 1978 Wyo. LEXIS 286 (Wyo. 1978).

Opinion

RAPER, Justice.

By this appeal, plaintiffs-appellants challenge the summary judgment entered by the district court dismissing with prejudice their complaint for damages, based on an alleged denial of rights as secured by the Wyoming Uniform Consumer Credit Code, hereinafter UCCC. This is the first case in which we have been called on to consider that Act. In urging reversal, appellants assert: (1) that the trial court erred in granting appellees-Rock Springs National Bank (hereinafter Bank) and Adams Sales, Inc. (hereinafter Adams) motions for summary judgment; (2) that the trial court erred in denying appellants’ motion to strike paragraph 7 of the affidavit of Thomas J. Kos. We shall affirm the district court.

There is no dispute about the evidentiary facts or any inferences which may be properly drawn from the circumstances. Motions for summary judgments by the Bank and Adams were therefore procedurally proper. Rule 56, W.R.C.P. On July 19, 1971, plaintiffs signed an agreement with defendant Adams for the purchase of a 1971 mobile home, manufactured by Red-man Industries, Inc., another defendant (hereinafter Redman), under which agreement the home would be financed through the Bank. A security agreement and financing statement on the Mobile Home, as well as a collateral and installment note, were then executed between plaintiffs and the Bank on forms supplied by the Bank to Adams. Adams was paid by the Bank the cash price of the mobile home, as reflected by the purchase agreement (plus insurance and recording costs) but Adams did not appear as a party to either the security agreement and financing statement or the collateral and installment note. Adams received no fees from the Bank nor was the installment note or financing statement discounted by Adams to the Bank.

The mobile home was received from Red-man by Adams sometime prior to July 30, 1971, and delivered to plaintiffs on that date. The fact that the mobile home had been damaged while in transit from Red-man, according to affidavits in the file, was not known to employees of Adams when the mobile home was delivered to plaintiffs but was discovered after it had been set up.

Originally, a cause for violation of the Federal Truth in Lending Act was filed with a companion case in the United States District Court for the District of Wyoming. In response to a motion for summary judg[1376]*1376ment, both cases were dismissed by the United States District Court and the dismissal, as to the same plaintiffs as here, affirmed by the United States Tenth Circuit Court of Appeals for the reason that the one-year statute of limitation prescribed by 15 U.S.C. § 1640(e) had run. Stevens v. Rock Springs National Bank, 10 Cir. 1974, 497 F.2d 307, appeal after remand, Hinkle v. Rock Springs National Bank, 10 Cir. 1976, 538 F.2d 295. Plaintiffs then filed a complaint in Sweetwater County (subsequently transferred to Carbon County), alleging violation of the UCCC, § 40-2-403, W.S.1957, 1975 Cum.Supp.,1 for breaches of express and implied warranties, and fraud in the sale of a damaged mobile home. Following remand of a prior appeal by this court for failure of the order appealed from to comply with Rule 54(b), W.R. C.P.,2 the summary judgment here appealed from in favor of the Bank and Adams was entered. Rule 54(b) has now been complied with, by a determination of the trial judge that there is no just reason for delay and his direction that a final judgment be entered. There still remain in the district court for trial, plaintiffs’ causes of action against Adams and Redman for fraud and breach of warranty.

In granting appellees’ motions for summary judgment, the trial court dismissed plaintiffs’ complaint against the Bank as to all causes of action and the complaint against Adams as to cause of action one, dealing with alleged violations under the UCCC. Although the plaintiffs have requested reversal of the trial court’s decision as to all causes of action filed against the Bank, neither authority nor discussion has been presented in their brief to support their assertions, save as concerns cause one, violation of § 40-2-403, UCCC, supra. In light of this total lack of argument and authority on the remaining causes, appellants’ request for their reversal does not merit consideration on appeal. First National Bank of Thermopolis v. Bonham, Wyo.1977, 559 P.2d 42; Matter of Estate of Morgan, Wyo.1977, 568 P.2d 892.

In urging reversal of the summary judgment entered as to causes of action for both the Bank and Adams, as stated, appellants assert that as shown by the affidavits filed, both Adams and the Bank violated, in the transaction herein, the UCCC prohibition against the use of negotiable instruments in consumer credit sales. Section 40-2-403, UCCC, supra. In support thereof, plaintiffs cite the Regulation Z definition of credit sales, 12 C.F.R. 226.2(n),3 yet at the same time fail to note that under the Wyoming UCCC, a credit sale is also specifically defined, § 40-2-104, UCCC,4 although [1377]*1377not as broadly as in the federal version. The UCCC definition varies from the federal definition, by a particular pertinent to this case, in that the Wyoming Act does not encompass a seller who “arranges” a credit sale.

Even assuming for the purposes of disposition of this case only, that under either or both definitions what transpired herein was a consumer credit sale, neither the Bank nor Adams have, strictly speaking, acted improperly or illegally under either the Federal Truth in Lending provisions nor the Wyoming UCCC. There is no evidence tendered by the plaintiffs that Adams “arranged” the credit advanced by the Bank directly to plaintiffs. The Bank did no more than furnish forms to Adams, to be completed by the plaintiffs. The Bank is located in Rock Springs, Wyoming; Adams is located at Green River, Wyoming. There is no indication that Adams and the Bank were doing anything but acting independently, Adams, as a seller, the Bank, as a lender. As far as the UCCC is concerned, that would have no bearing anyway, because “arrangers” are not covered. In fact, a prohibition against negotiable instruments in consumer credit sales is not even discussed within the Truth in Lending Act nor under “Regulation Z.” The UCCC, enacted by almost all states, including Wyoming, is to allow state rather than federal control of credit transactions,5 specifically dealing with prohibitions with respect to negotiable instruments.

Section 40-2-403 is Section 2.403 of the Uniform Consumer Credit Code. That section in its first sentence simply abrogates the right of a seller to take a negotiable document and assign it to a lender — a bank or finance company, usually. There had been developing for some years a legislative and judicial trend favoring avoidance of holder-in-due-course protection for financial institutions purchasing consumer paper.6 [1378]

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Cite This Page — Counsel Stack

Bluebook (online)
577 P.2d 1374, 1978 Wyo. LEXIS 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-rock-springs-national-bank-wyo-1978.