Wittner Appliances v. Trammell

VAN DYKE, P. J. This appeal involves the liability of successive assignees of a conditional sales contract for the obligation of the first assignor.

Under date of September 23, 1955, Corwin S. and Lena Johnson, husband and wife, hereinafter called “Johnsons,” entered into a contract with Security Land and Development Company, Inc., a copartnership, hereinafter called “Security,” for the purchase by Johnsons from Security of certain real property for which Johnsons were to pay $46,000. The contract also covered the purchase of certain appliances for which Johnsons were to pay $4,225. That part of the contract which governed the purchase and sale of the real estate was closed through a title company in the usual manner and the real estate transaction having been completed, there was left unperformed the mutual obligations of the parties concerning the purchase of the appliances. On this subject the contract provided: “Buyer agrees to purchase the following appliances: eight (8) Automatic GE Washers; eight (8) GE Electric ranges; eight (8) GE refrigerators of the total sum of Four Thousand two hundred twenty-five dollars ($4,225.00).” It appears that prior to the contract between Security and Johnsons defendant Willard O. Trammell, Sr., president of Security, had entered into a conditional sales contract with plaintiffs wherein he agreed to purchase from plaintiffs the washers, ranges and refrigerators which Security later agreed to sell to Johnsons, and that the conditional sales contract also covered the purchase by Trammell of eight coolers, all for a total contract price of $7,000, made up of the sum of $5,745.20 [291]as the actual purchase price of the articles, plus the sum of $1,254.80 as the time sales charge. This contract furnished the basis for the judgment herein. It antedated the contract between Security and Johnsons by approximately one month and plaintiffs had, contemporaneously with its execution, assigned their interests to the Bank of America under a dealer-repurchase agreement. The eight coolers had been installed upon the roof of the buildings situated on the real property purchased by Johnsons and were there at the time Johnsons viewed the property and agreed to buy it. The washers, ranges, and refrigerators were in the building and were being used by tenants under rental arrangements.

Trammell’s contract with plaintiffs for the purchase of all the 32 appliances contained remedial provisions available to plaintiffs if Trammell should breach his contract. After the contract had been assigned to the bank it was breached, and the bank reassigned to plaintiffs and held them on the repurchase agreement. The provisional remedies for breach included the usual right of repossession, sales for the account of the purchaser, liability of the purchaser for deficiency, and liability of the purchaser for expenses and attorney fees incurred by the seller in pursuit of remedies for breach.