Ellis v. Community Chevrolet, Inc.

KAUS, J. Defendant Community Chevrolet, Inc., (“dealer”) sold a used 1955 Ford on December 29, 1959. Later that day the ear was involved in an accident. After extensive proceedings below it was held that the dealer had not properly relieved itself of its liability as owner and was vicariously responsible for the negligence of the driver under section 17150 of the Vehicle Code. Plaintiff was awarded a judgment in the sum of $1,900. The dealer appeals.

The findings of fact by the trial court are not questioned and are thus summarized:

On December 29, 1959, three brothers, Lewis G-. Purdy, Sammy Lee Purdy and Carroll R. Purdy came to the dealer to buy a used ear. The salesman was advised that Lewis was a minor, but that he was the only one of the three who was employed and that he would pay for the car to be purchased. The 1955 Ford in question was then sold and because of Lewis’ minority the conditional sales contract for the purchase of the car was signed by Sammy. Lewis at the time gave the dealer a power of attorney to execute any documents necessary for the registration of the automobile. Neither the certificate of ownership nor the certificate of registration was delivered to the Purdys.

The deal was financed by the California Bank. Pursuant to the power of attorney executed by Lewis, the dealer then caused an application for transfer of title to be executed, naming Lewis as the new registered owner and the California Bank as the new legal owner. Lewis at the time was a minor as defined by section 25 of the Civil Code.

Two hours after the ear was delivered to the Purdys it was involved in a three-ear accident. At that time it was being driven by Carroll. One other car in the accident was a Pontiac [81]driven by Sammy and the third an automobile driven by the plaintiff Ellis.

After the accident but before the end of the next business day the dealer attempted to comply with “the procedure prescribed in Vehicle Co'de, sections 5602, subdivision (b), 5900 and 5901; that it did so by mailing to the Department of Motor Vehicles at Sacramento a dealer’s notice of sale of used vehicle describing the 1955 Ford, engine number U5RF119803, and notified the local office of the department of said sale on December 31, 1959.”

This notice of sale described the purchaser as Lewis Purdy.

Under the heading “Conclusions of Law” the court stated:1