W. S. Maxwell Co. v. Southern Oregon Gas Corp.

74 P.2d 594, 158 Or. 168, 114 A.L.R. 697, 1937 Ore. LEXIS 155
CourtOregon Supreme Court
DecidedDecember 21, 1937
StatusPublished
Cited by29 cases

This text of 74 P.2d 594 (W. S. Maxwell Co. v. Southern Oregon Gas Corp.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. S. Maxwell Co. v. Southern Oregon Gas Corp., 74 P.2d 594, 158 Or. 168, 114 A.L.R. 697, 1937 Ore. LEXIS 155 (Or. 1937).

Opinions

LUSK, J.

This is an action for a breach of warranty of title in the sale of an automobile. In a trial before a jury the court, .at the conclusion of plaintiff’s case, entered a judgment of involuntary nonsuit, from which this appeal is taken. The question for our determination is whether the plaintiff produced substantial evidence in support of the material averments of the complaint.

Those averments are, in substance, that on August 15,1935, the defendant sold to the plaintiff a Chevrolet automobile for the sum of $550; that defendant warranted the title and plaintiff relying upon such warranty sold the automobile to one Clarence Y. Bells, to whom, in turn, plaintiff warranted the title; that in fact the defendant never had title, by reason whereof Bells was subsequently compelled to deliver the car to the real owner and plaintiff was compelled to refund the purchase price to Bells.

The defendant denied that it sold the car to plaintiff. It contended on the trial that the sale was made by it to Bells; that plaintiff was a mere agent or intermediary in finding a purchaser, and, hence, that there was no warranty of title by the defendant to the plaintiff. The circuit court sustained this claim and on that ground rested its ruling. We shall first consider that question.

[171]*171The record discloses that the plaintiff, W. S. Maxwell Company, a corporation, is a duly licensed dealer in automobiles under chapter 1 of title 55, Oregon Code 1930, and the amendments thereof. The defendant being in possession of the Chevrolet sedan in question, and being in the market for a new “Chevrolet pick-up”, approached the sales manager of the plaintiff, Harold Prestle, and offered the sedan as a trade-in on a pick-up. Prestle testified: “We at that time found a prospective customer for this 1934 Chevrolet sedan and with the approval of the Southern Oregon Gas Corporation sold it to this prospective customer, Clarence Y. Bells, a short time later — ten days or something — we delivered them a new pick-up and gave them credit for this car on this new pick-up.” He further testified as follows:

“Q. What if anything was the purchase price paid the defendant, Southern Oregon Gas Corporation, for the car?
“A. $550. * * *
“ Q. What was done by the plaintiff with reference to the car after it was purchased from the defendant?
“A. It was sold to Clarence Y. Bells.”

The witness identified, and there was received in evidence, an invoice dated August 15, 1935, covering a sale of the Chevrolet sedan by W. S. Maxwell Company to Clarence V. Bells for $550, plus the sum of $86.52, which was added to the purchase price for interest and insurance.

The provisions of section 55-203, Oregon Code Supplement 1935, were not complied with. By the terms of that section, upon the sale or transfer of a motor vehicle to a licensed dealer, the transferor is required to indorse the certificate of title to the vehicle, and the dealer is not required to present the registration card and the certificate of title to the secretary of [172]*172state until such time as the motor vehicle has been sold by the licensed dealer. But it is provided that the dealer immediately shall notify the secretary of state that the motor vehicle has been transferred to him. It is further provided that upon the sale of the motor vehicle by the licensed dealer, the latter shall deliver to the transferee the assigned certificate of title received by him, which certificate of title shall be forwarded to the secretary of state, etc:

The defendant’s certificate of title was not produced, but oral evidence was received which indicates that this certificate was held by the Grants Pass and Josephine Bank, which had a mortgage on the car, and that it was indorsed by the defendant and transferred by the bank directly to Bells. It is further inferable from the testimony that Bells paid to the plaintiff $150 of the purchase price by turning' in a Durant sedan; that $34 was paid in a manner not explained, and that the balance of .$452.52 was represented by a contract of conditional sale which ran to the bank, replacing the latter’s mortgage. Thus, assuming the transaction to have been a sale by defendant to plaintiff, and thence by plaintiff to Bells, the provisions of the statute, which required that the certificate of title be transferred to plaintiff and that plaintiff notify the secretary of state and deliver to Bells the assigned certificate of title, were ignored.

But this failure to obey the law is not conclusive against plaintiff’s theory: Thiering v. Gage, 132 Or. 92 (284 P. 832); Henry v. Condit, 152 Or. 348 (53 P. (2d) 722, 103 A. L. R. 131); Fagg v. Massachusetts Bonding and Insurance Company, 142 Or. 358 (19 P. (2d) 413). The result of these decisions is, that the legislature has not provided an exclusive method of transferring title to motor vehicles. A person makes [173]*173himself subject to a penalty by failing to comply with these provisions, and where the rights of third parties, who rely on the record title, intervene, an attempted sale may be voided. But as Mr. Justice McBride said in Thiering v. Gage, supra, at page 103:

“The purpose of all these provisions, among other objects, is to afford the purchaser clear evidence of his title, as the law provides that the certificate of title and registration receipt shall be prima facie evidence of ownership thereby implying that there may be other evidence either way to show title to an automobile. So we are of the opinion that, if a man buys his neighbor’s automobile and pays for it in good faith, under the present statute it is his property, even though he may be subject to a fine for not forwarding proper evidence of his title to the secretary of state.”

In this case, in view of the presumption of obedience to law, and the prima facie effect which the statute gives to the certificate of title and registration card (known as registration receipt in the old legislation), the method pursued by the parties to this transaction is evidence against the plaintiff’s claim. But it is. not conclusive, and if there is other evidence from which the inference of a sale by defendant to plaintiff and a subsequent sale by plaintiff to Bells may be drawn, a question for the jury arises on that issue. We think that the portion of the testimony to which we have referred, describing the dealings between the parties, constitutes evidence of such a sale — a transaction in which the plaintiff bought the Chevrolet sedan from defendant and sold another motor vehicle to the defendant, giving credit to the latter in the amount which plaintiff was able to obtain on a resale of the Chevrolet sedan, a not unusual method of dealing in the automobile business. The fact that the resale of the Chevrolet sedan must be with the approval of the defendant does not necessarily negative the idea of a [174]*174sale to plaintiff nor compel the conclusion that plaintiff was a mere agent of the defendant to find a buyer. It is, at best, but evidence in support of that theory, for in view of the other facts and circumstances in the record, a trier of the facts might reasonably conclude that, upon the approval of defendant being obtained, the sale to the plaintiff was to be consummated.

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Bluebook (online)
74 P.2d 594, 158 Or. 168, 114 A.L.R. 697, 1937 Ore. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-s-maxwell-co-v-southern-oregon-gas-corp-or-1937.