Telford v. Iowa Guarantee Mortgage Corp.

235 N.W. 663, 58 S.D. 261, 1931 S.D. LEXIS 65
CourtSouth Dakota Supreme Court
DecidedMarch 30, 1931
DocketFile No. 6944
StatusPublished

This text of 235 N.W. 663 (Telford v. Iowa Guarantee Mortgage Corp.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Telford v. Iowa Guarantee Mortgage Corp., 235 N.W. 663, 58 S.D. 261, 1931 S.D. LEXIS 65 (S.D. 1931).

Opinion

WARR'EN, J.

Action for damages ia the nature of conversion by plaintiff against defendant, the plaintiff alleging that one Blaess became indebted to him on account of his furnishing money to enable Blaess to malee a payment upon a certain automobile which had been sold by defendant, assignor, .to Blaess and upon which the defendant was then holding a conditional sales contract. There was delivered to the plaintiff by Blaess á note secured by a second mortgage on the automobile upon which the defendant was then holding a conditional sales contract. The plaintiff in his complaint claims that the car 'was purchased under a conditional sales contract for the sum of $1,532, and that Blaess [262]*262had paid $863.54; that the said defendant took possession of the car and took it out of the possession of the said Blaess without due process of law and without giving the said Blaess notice thereof, as required by law, and that the same was sold without retaining the car before the sale and furnishing Blaess with a statement showing the balance due, and that Blaess had paid more than 50 per cent of the purchase price; that defendant sold said car without notice to Blaess and the plaintiff herein as required by law and without posting or publishing- notice of sale as required.

The defendant in the first paragraph of his answer states: “Denies each and every allegation, matter, and fact therein contained, except what is hereinafter expressly admitted, modified, or qualified by this answer.” Then follows the allegation of the defendant’s corporate existence, the purchase and sale of the automobile, and the allegations as to the conditional sales contract, the assignment of the sales contract from Faclcelman 'Motor Company, and other allegations in defendant’s answer became very material. It is therefore set out in hsec verba:

“5. Alleges -that on December 3, 1928, this defendant repossessed said automobile described in said sale contract, for the reason the said Henry W. Blaess was in default and had failed to comply with the terms of said contract, particularly as follows: (.a). The said Henry W>. Blaess had failed to pay the amounts therein specified at the time the said amounts became due and payable, (b). That the said Henry W. Blaess was permitting this plaintiff to use said automobile without the defendant’s knowledge or consent.
“That at the time of said repossession one-half of the purchase price of said automobile, including the down payment, had not been paid and that this defendant, at said time and according to- the terms of said note and sale contract, declared the entire amount due and payable. Alleges that the said Henry W. Blaess after said repossession, agreed to pay the amount then delinquent, according to the terms of said contract, and note, and further agreed that after the said automobile was returned to him that he would not permit the plaintiff to use or have the possession, custody or control of said automobile; alleges that it had been brought to- this defendant’s attention at the time of said repossession that plaintiff [263]*263was unlawfully using the said automobile. That it was expressly understood and agreed that if the said Henry W. Blaess were given possession of said automobile by said defendant, after said repossession, it was as above set forth and not otherwise, and on the further consideration that the defendant would waive no' right, according to the terms of said contract and note in returning said automobile to the said^Henry W. Blaess, and that if it should be necessary to repossess said automobile again, it was expressly understood and agreed between said defendant and said Henry W>. Blaess that this defendant would be under no liabilty to' the said Henry W. Blaess for a resale of said automobile under the Uniform Conditional Sale L,aw of this state, 'but that the said Henry W. Blaess would forfeit all his rights in said automobile, note and sale contract and as a further consideration said debt would be cancelled.
“6. Alleges that said1 automobile was thereupon returned to the said Henry W. Blaess, as hereinbefore specified, and not otherwise. Alleges that thereafter the said Henry W. Blaess again became in default, failed to make the payments according to the terms of said- note and sale contract and permitted the plaintiff to again acquire possession, control and custody of said automobile; that said plaintiff was unlawfully using said automobile and that this defendant, upon being informed of said default and unlawful use of said automobile, repossesed said automobile on January 15, 1929. That when said second repossession was made by said defendant, it discovered that the said Henry W. Blaess, or the said plaintiff, had removed from said automobile the heater, four new tires, the spare tire, spare tube, spare rim and other accessories, and that it cost this defendant $125.25 for labor and material to repair and recondition said automobile in order to place it in a salable condition. Alleges that said sale contract specifically provides that any equipment, tires or accessories placed on said automobile after the execution of said contract, would be included in said contract. Alleges that this defendant, according to the terms of said sale contract, after the repossession of said automobile, was authorized to add to said sale contract the expense of repossession, storage, and repairs thereon. Alleges that the amount of storage from the date of the second repossession until the date of sale, was $10.00. Alleges that said Henry W. Blaess granted [264]*264the plaintiff peaceable possession of said automobile, and that pursuant to the aforesaid sale contract, note and oral agreement entered into at the time of the first repossession, the said defendant did not have a resale according to the conditions of the Uniform Conditional Sale Law.”

As an additional answer in said defense the defendant pleads a further and separate defense by way of counterclaim, alleging the execution of a certain promissory note and the execution of a certain conditional sales contract to secure the payment of said note, both executed by Blaess, and that the said note and sales contract were assigned from Fackelman Motor Company to defendant and duly filed. Then follows the allegations that the entire indebtedness in the amount described in note and sales contract is due and owing and the default is pleaded as follows :

“8. That the entire indebtedness and amount described in said note and sale contract, except what has been paid as stated in this counterclaim is due and owing. That there has been a default in the terms and conditions of said note and sale contract, and that the said plaintiff now elects to declare, and does declare, the said sale contract and note due and payable, and demands that the entire amount be paid.
“9. Alleges that no proceedings have been instituted for the recovery of said indebtedness, or any part thereof, except as has hereinbefore been set forth in defendant’s first defense.
“10. Alleges that the said Henry W. Blaess should be made a party to this action in order that his rights may be adjudicated.
“(2) That if said complaint is not dismissed on the merits and with costs that this defendant have judgment for the amount due on said sale contract and note, and that the same be foreclosed as provided by law, with costs.”

Exhibit B is the usual conditional sales contract and is referred tó in defendant’s answer as an exhibit.

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Related

Hill v. Walsh
61 N.W. 440 (South Dakota Supreme Court, 1894)

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Bluebook (online)
235 N.W. 663, 58 S.D. 261, 1931 S.D. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/telford-v-iowa-guarantee-mortgage-corp-sd-1931.