Stroesser v. Hopper

129 N.W.2d 913, 269 Minn. 96, 1964 Minn. LEXIS 756
CourtSupreme Court of Minnesota
DecidedAugust 7, 1964
Docket39,194
StatusPublished
Cited by5 cases

This text of 129 N.W.2d 913 (Stroesser v. Hopper) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stroesser v. Hopper, 129 N.W.2d 913, 269 Minn. 96, 1964 Minn. LEXIS 756 (Mich. 1964).

Opinion

Otis, Justice.

This litigation arises out of a collision between automobiles operated by plaintiff Bernard Reagan and defendant Bobby Joe Hopper in which the drivers and their passengers seek to recover damages for personal injuries. The jury by special verdict found defendant Hopper liable to his passenger, plaintiff Pierre Stroesser, and to Reagan and his passengers. In addition it determined that defendant Mark Doyne’s, Inc. (hereinafter designated “Doyne”) was the owner of the automobile being driven by defendant Hopper at the time of the accident. The court entered findings of fact and conclusions of law consistent with the jury’s verdict. Defendant Doyne appeals from an order denying its alternative motion to vacate the verdict, amend the findings, and enter judgment n. o. v., dr grant it a new trial. Hopper has not appealed.

*98 Doyne assigns as error the court’s failure to hold as a matter of law that Doyne was not the owner of the vehicle which Hopper was driving. The circumstances under which Hopper secured possession of the automobile are not in serious dispute.

On June 7, 1961, at about 1:30 in the afternoon, Hopper appeared at Doyne’s automobile agency in an MG sports car and briefly discussed the possibility of trading it in on an Austin-Healey automobile. Hopper agreed to a price, and the salesman suggested he take the Austin-Healey back to his place of business while he determined whether his bank would finance the transaction. Hopper followed this suggestion and returned to Doyne at about 4 o’clock the same afternoon to advise them he had secured informal approval of the loan. However, Hopper made it clear that he would not be available to complete the financing until the following Monday, June 12. He testified he advised Doyne that the transaction would not be consummated unless he secured the necessary financing from his bank. At the suggestion of Doyne, Hopper decided to leave his MG and take the Austin-Healey overnight with a view to returning it in the morning. Thereupon Doyne secured Hopper’s execution of a purchase order, an invoice, a conditional sales contract, a bill of sale, and an application for transfer of the registration certificates acknowledged under oath, designed to permit the ultimate transfer of the Austin-Healey to Hopper and the MG to Doyne. The contract was designated a “cash on delivery” sale for the total sum of $2,452, of which $1,000 was credited on the trade-in of the MG and the balance payable in cash. As further security Doyne insisted on Hopper’s signing a check for $1,452, notwithstanding the fact Hopper made it plain the check would not be covered by sufficient funds unless the bank completed the financing the following week.

The accident in question occurred at about 11:50 the same evening, resulting in extensive damage to the Austin-Healey. Hopper failed to pursue the negotiations for a loan on the theory it would be futile to do so in view of the fact the security had for practical purposes been demolished. However, Hopper did apply to and secure from his own collision carrier reimbursement for the damages occurring to the Austin-Healey. Doyne refused to return the MG to Hopper, and on June *99 20, 1961, Doyne belatedly through the office of the secretary of state transferred the title cards of both the MG and the Austin, and on the same date attempted unsuccessfully to negotiate Hopper’s check, payment on which had been stopped. Subsequently Doyne repossessed the Austin by replevin proceedings.

In this state of the record Doyne earnestly contends the jury was not warranted in finding that Doyne had retained title to the Austin at the time of the accident. Respondents, on the other hand, insist that the transaction was expressly contingent on Hopper’s securing bank financing, which process had not progressed beyond oral acquiescence. There remained the important matters of fixing the rate of interest, completing the execution of an application and a chattel mortgage, signing the note, securing formal approval of the loan, and the bank’s examination of the automobile. In addition, respondents argue that Doyne retained all the papers which normally would be delivered to the purchaser, neglected to sign the purchase order, and delayed transferring the title long beyond the time prescribed by statute.

If Doyne is liable, it is by virtue of the vicarious liability statute, Minn. St. 170.54, under which a driver is deemed to be the agent of the owner for purposes of requiring the owner to respond in damages. Registration of title is prima facie evidence of ownership which may be rebutted by evidence of the true intention of the parties. 1 Under § 169.01, subd. 26, of the Highway Traffic Regulation Act, and § 170.21, subd. 9, of the Safety Responsibility Act, an owner is defined as the person who holds legal tide or who is a conditional vendee in possession. The question here presented is governed, however, by the provisions of the Uniform Sales Act, Minn. St. c. 512, pertinent sections of which are as follows:

Section 512.18. “(1) Where there is a contract to sell specific or ascertained goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.

*100 “(2) For the purpose of ascertaining the intention of the parties, regard shall be had to the terms of the contract, the conduct of the parties, usages of trade and the circumstances of the case.”

Section 512.19. “Unless a different intention appears, the following are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

“Rule 1. Where there is an unconditional contract to sell specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made and it is immaterial whether the time of payment, or the time of delivery, or both, be postponed.”

As we view the evidence, the jury was justified in finding that the parties did not intend title to be transferred until Hopper’s financing was completed. It is significant that the entire transaction, including both of Hopper’s visits to the Doyne garage, consumed a relatively brief period of time. Hopper was manifestly in a hurry, signed whatever was thrust at him, and acquiesced in any suggestion Doyne proposed, including the offer to take the car overnight. While the purchase order characterized the transaction as a cash sale, Doyne nevertheless retained control and possession of the title papers and obtained as additional security a conditional sales contract and a check which it should have known was not covered by sufficient funds. Under all the circumstances, we are of the opinion that the evidence sustains a finding that the true intention of the parties was not to consummate the contract until the week after possession was temporarily delivered to Hopper, and that the title in the meantime was to remain in Doyne.

It is the contention of Doyne that plaintiff Bernard 1 Reagan was guilty of contributory negligence as a matter of law in failing to see the Hopper vehicle before the accident and in failing to yield the right-of-way.

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Cite This Page — Counsel Stack

Bluebook (online)
129 N.W.2d 913, 269 Minn. 96, 1964 Minn. LEXIS 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stroesser-v-hopper-minn-1964.