Auto Auction, Inc. v. Riding Motors

LILLIE, J.

From an adverse judgment in a suit by Auto Auction against Riding Motors to recover $5,000 in damages for breach of warranty of title to an automobile, Auto Auction has appealed.

Most of the background facts are undisputed; they commence in New Orleans on July 6, 1958. On that day, a Sunday, one Harvey called at the show room of O. E. Haring, Inc., a Chrysler dealer in that city, to look at automobiles. A regularly employed Haring salesman, Frank Winling, proceeded to show Harvey a 1958 Chrysler Imperial, registered in the name of O. E. Haring, Inc., possessing a Louisiana certificate of title thereto; in the course of these negotiations, Winling was joined by Harry J. Yirgets, Haring’s general manager. Subsequently Yirgets left for

home;

later, he telephoned Win-ling to suggest that Harvey take the ear home overnight for his wife’s examination and approval; this Harvey decided to do. Before Harvey departed with the ear, Winling wrote

[695]

up and signed an order for the sale on a Haring form which Harvey signed as purchaser; the price was $5,600, the list price ($7,414.90) being reduced by $1,814.90 on the express authority of Virgets. The order was never signed by Virgets or Haring. Harvey gave Winling $50 in cash; he also executed and delivered to Winling a chattel mortgage on Haring’s regular form by which he promised to pay the balance of the agreed purchase price.

Harvey failed to return with the car on Monday; Virgets reported the matter the same day to New Orleans law enforcement agencies and the field office of the Federal Bureau of Investigation. An offer to pay $1,000 for information leading to the recovery of the car was circulated throughout the 48 states — this sum, it appears, was paid when the car was eventually recovered, although it further appears that a criminal complaint against Harvey was never signed by a Haring representative or any other person.

The car was taken by Harvey into Alabama where license plates were purchased (as permitted by law) without proof of ownership; he then took the car to Wyoming where Wyoming plates were purchased and a Wyoming certificate of title (dated July 30, 1958) obtained on the car in the name of Harvey upon presentation of the Alabama plates. On August 9, 1958, Harvey made an appearance at the business office of Barnett Motors in Long Beach, California; he proceeded to sell the car to Barnett for $3,850 cash, delivering a bill of sale and the Wyoming certificate of title and registration. On August 11, 1958, Barnett sold the car to Biding Motors, defendant herein, for $4,000; the next day, Biding sold the car to plaintiff Auto Auction for $4,150 which in turn sold the Chrysler to Tower Motors of San Diego for $4,195. In each case the seller gave the buyer a bill of sale in the usual form containing an express warranty of title with “no exceptions.”