Henry v. General Forming, Ltd.

SHENK, J.

This is an appeal by third party claimant from an adverse judgment in a third party claim proceeding.

On March 21, 1947, the present action was commenced by the plaintiff against various corporations and individuals including Kenneth L. Morehouse (herein referred to as defendant), who were makers and guarantors on an unsecured promissory note in the principal sum of $5,000. On April 28th, 1947, pursuant to a levy under a writ of attachment the sheriff took possession of a 1947 Buiek sedan registered in the name of defendant as legal owner. Third party claim proceedings instituted by Charlie Marsalisi followed and a hearing was had to determine ownership and right to possession of the vehicle. The following undisputed facts appeared:

On April 9th, 1947, the defendant was notified by the Buick dealer that he was next on the list for the purchase and delivery of a new car. Defendant was unable to finance the purchase. On April 19th, he sold his purchase rights to Charlie

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Marsalisi, a used car dealer, for $200. Marsalisi’s agents, with a cheek covering the amount of the purchase price, accompanied the defendant to the Buick agency and consummated the transaction by the use of Marsalisi’s cheek as the consideration and the defendant’s name to designate the transferee on the registration and title papers. The defendant immediately turned over to Marsalisi’s agents the possession of the vehicle and papers. It is conceded by the plaintiff that the defendant did not own any interest in the vehicle which stood on Marsalisi’s used car lot until taken by the sheriff. The judgment that the defendant was the owner and entitled to possession of the automobile rested on a determination that asserted violations of the Vehicle Code required that result.

Section 186 of the Vehicle Code provides: "No transfer of the title or any interest in or to a vehicle registered hereunder shall pass and any attempted transfer shall not be effective unless and until the parties thereto have fulfilled” requirements for registration then specified. No contention is made that the registration requirements were not discharged in the transfer of title to the defendant; but neither he nor Marsalisi complied with the requirements of the code to show registration of the vehicle in Marsalisi as owner. Section 178 provides that the registered owner is released from liability for negligence when, upon making a transfer, he complies with certain requirements. Section 140 makes it a misdemeanor "for any person to drive or move, or for an owner knowingly to permit to be driven or moved” upon the highway ■ a vehicle which is required to be registered and which is not registered or for which the appropriate registration fee has not been paid. Section 230 makes violation of any of the provisions for registration a misdemeanor.