Robinson v. Hubbard

FORD, J. The defendant, A. M. Hubbard, Jr., appeals from a judgment in favor of the plaintiff, Earl S. Robinson, for the sum of $5,000, together with interest and costs. His sole contention is that the findings upon which the judgment is based are not supported by the evidence.

The nature of the controversy as it appears from the record is as follows. The respondent Robinson purchased a truck and trailer from the White Motor Company about August 14, 1957, under a conditional sales contract. The White Motor Company, as conditional vendor, retained the legal title to [718]the truck and trailer. On or about August 1, 1958, the respondent agreed to assign his interest in the truck and trailer under the conditional sales contract to the appellant Hubbard. The actual assignment of the respondent’s interest in the contract was made in writing about two weeks later at the office of the White Motor Company. The evidence was in conflict as to the terms of the oral agreement made by the appellant and respondent. The respondent testified in effect that the appellant agreed to pay $5,000 cash upon completion of the formalities relating to the transfer of his interest. The appellant conceded that he agreed to pay $5,000 for the respondent’s equity, but he claimed that the sum was to be paid out of the profits of a hauling contract which he had agreed to take over from the respondent. No part of the $5,000 was ever paid by the appellant to the respondent.

On this appeal, the appellant argues that the evidence is insufficient to support the findings in that, accepting the respondent’s version of the agreement, the evidence introduced by the respondent conclusively established that the appellant’s duty to pay $5,000 was subject to a condition precedent, which condition did not occur. Hence, he argues, his obligation to pay the respondent has not matured. Appellant states: “The evidence is undisputed that the $5,000.00 was to be paid when the ownership certificate (pink slip) was transferred to defendant [appellant] and that it never had been transferred to him.” The testimony with respect to this issue is set out in the margin.1

In the normal course of events a conditional vendor retains legal title to the vehicle purchased under a conditional sales contract until the full purchase price is paid. During the intervening period the conditional vendor keeps possession of the ownership certificate (commonly known as the “pink slip”), being designated thereon as “legal owner” of the vehicle. (Veh. Code, §§ 67, 151-153; see 7 Cal.Jur.2d, Auto