James Talcott, Inc. v. Gee

STEPHENS, J.

This is an appeal from a judgment in favor of defendants and award of costs to defendants in an action for a deficiency under an equipment lease agreement.

The facts are that on June 15, 1964 Credit Mobilier, a California corporation, and Robert E. Gee, Jr., doing business as Crawford Ink & Supply Co. (hereinafter referred to as Gee) entered into a written lease agreement for the lease to Gee of a certain printing press. The term of said lease was 5 years and the total rental was $19,740, payable in 60 monthly instalments of $329. As security for full payment of rent and performance of the provisions of the lease, a deposit of $1,944 was paid to Credit Mobilier. On June 27, 1964, by an instrument in writing, Credit Mobilier assigned all of its rights to the lease and the printing press to James Talcott Western, Inc., predecessor of the present plaintiff, James Talcott, Inc. (hereinafter referred to as Talcott).

Gee leased the printing press for use in his business, and began making monthly payments on the lease beginning with the July 15, 1964, instalment. After July 21, 1965, Gee stopped making payments. There was testimony indicating that thereafter Gee had offered to pay off the lease provided that Talcott would credit Gee with the original security deposit. Talcott refused to credit Gee for his security deposit, but did quote Gee a payoff figure of $13,807.20. There is no evidence to indicate whether Gee ever attempted to pay Talcott this sum or any other sum.

On October 8, 1965, Talcott filed its complaint to recover possession of the press and for the balance of rents due under the lease. Talcott repossessed said printing press on the above date, and on June 3, 1966, sold the same at public auction.

On the basis of the above facts, the trial court concluded that the purported lease agreement was in fact a conditional sales contract; that Gee made a valid tender of the balance due under such contract, thereby vesting title in Gee; that the subsequent repossession sale of the printing press by Talcott was a conversion thereof; and that, in any event, no deficiency

[386]

judgment was recoverable because of the provisions of Civil Code section 1812.5.