National Funding Corp. v. Stump

BARNARD, P. J.

This is an action in claim and delivery to recover the possession of a Packard automobile.

The defendants King were automobile dealers in Victor-ville with a branch place of business in Barstow. For several years, the Bank of America had been “flooring” and financing automobiles for them under the Uniform Trust Receipts Law (Civ. Code, div. 3, pt. 4, tit. 14, ch. 3a). The

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last statement of such trust receipt financing in connection with these defendants was filed with the secretary of state on December 21, 1940, pursuant to section 3016.9 of the Civil Code. On December 17, 1940, King Brothers employed the defendant Stump as manager of their Barstow branch. During the next three months King Brothers purchased some five or six Packard automobiles from Earl C. Anthony, Inc., which were financed and paid for by King Brothers through trust receipts with the Bank of America. These cars were turned over to Stump and sold by him in the regular course of business with the exception of the last one, which is here in controversy.

On or about March 10, 1941, Stump went to Los Angeles and got this last car from Earl C. Anthony, Inc., taking it to Barstow. He testified that he paid nothing to Earl C.. Anthony, Inc. for the ear, that the ear was not charged to him, that the Bank of America paid Earl C. Anthony, Inc. for the car, and that he had no “flooring” arrangement with the Bank of America. Earl 0. Anthony, Inc. handed Stump a carbon copy of the invoice, which was not marked paid and which reads in part: “Sold to Bank of America— Victorville, for Walter G. Stump, Barstow, California.” About the same time the Bank of America paid Earl C. Anthony, Inc. $1,086.50, the full purchase price of the car, and a regular trust receipt therefor was executed by the Bank of America and by King Brothers. On or about March 28, 1941, the Commercial Credit Company, which is engaged in the business of “flooring” automobiles under the Uniform Trust Receipts Law, purchased from the Bank of America and paid for all of its “flooring” agreements with King Brothers covering new and used cars at both Victorville and Barstow, including the ear here in question, and executed another trust receipt with King Brothers. On March 31, 1941, a statement of trust receipt financing was filed with the secretary of state which had been signed on March 27, 1941, by King Brothers and Commercial Credit Company.