Western States Acceptance Corp. v. Bank of Italy

TYLER, P. J.

The complaint herein gets forth a cause of action in replevin to obtain from defendants possession of a Lincoln automobile alleged to have been wrongfully converted. Judgment was prayed for the return of the property or the recovery of its value in case delivery could not be had. By separate answers the three defendants, after denying the material allegations of the complaint, set up facts, by reason of which they averred, plaintiff was estopped from asserting any title to or right of possession of the ear. Trial was had and at the close of plaintiff’s case motion was made for a nonsuit upon various grounds by defendants Bank of Italy and Mrs. B. Kennon. The motion was granted as to such defendants.

The main issue presented by plaintiff at the trial turned upon the question as to whether or not the car was purchased by plaintiff corporation from the Ford Company on its own behalf with retention of title in itself, to be thereafter delivered to defendant Ballard under a trust agreement, or whether the car was purchased by defendant Ballard with money obtained by him as a loan from plaintiff corporation. Upon this subject there was a decided conflict in the evidence and without more a nonsuit would have been unjustified.

(Rube

v.

Western Union Tel. Co.,

198 Cal. 294 [244 Pac. 1077].) Defendants, however, pleaded an estoppel and this question was fully gone into as part of plaintiff’s case. The evidence upon this subject was Without conflict and conclusively showed that plaintiff was

[21]

estopped from asserting its alleged title as against the particular defendants in whose favor the judgment of nonsuit was rendered. The question of title therefore became unimportant.

The facts show that on or about April 20, 1925, defendant Ballard was engaged in business as a retail dealer in automobiles, at Sacramento. He represented the Lincoln automobile. At this time he was also vice-president and a director of plaintiff corporation, which was engaged in the exclusive business of financing Ford and Lincoln automobiles. The Ford Motor Company of Delaware was doing business in San Francisco, but did not sell ears to anyone but the recognized dealers. Ballard, being a recognized dealer in Lincoln cars at Sacramento, could buy Lincoln cars only from the Ford Company. He was desirous of acquiring for sale a certain type of Lincoln car, and he consulted the general manager of plaintiff corporation with reference to that company financing it. The manager knew Ballard, having had previous business relations with him and he also knew that he was a Ford and Lincoln dealer at Sacramento and, further, that he was one of the directors of plaintiff corporation, and he agreed to the arrangement, and thereupon telephoned the Ford Company and obtained the motor number of the desired car. A check was drawn by plaintiff corporation for its -full price and was paid by it to the Ford Company, and delivery was made directly to Ballard. Prior or subsequent to the payment, Ballard executed a certain trust receipt in favor of plaintiff corporation, whereby he agreed to hold the ear in trust as the property of plaintiff and not to operate the same for demonstration purposes and upon demand to return it in an unused and good condition. He also agreed not to sell, encumber or otherwise dispose of the same except upon written consent of plaintiff. About three weeks after Ballard was in possession of the car, he received a notice from the Ford Company informing him that there was a shortage of the type of car it had delivered to him and requesting that he release the same to the firm of Gaudin & Pahl, Ford dealers, as that firm had a sale for this particular model. Ballard agreed to the arrangement on condition that the company would furnish him another car in its place as soon as it arrived.