Court Opinion

ID: 9562540
Source: CourtListenerOpinion
Date Created: 2023-08-21 18:31:09.332164+00
Date Added: 2024-06-11T09:17:23.680193
License: Public Domain

Given, President,
dissenting:
I am of the view that Point 1 of the syllabus attempts to apply a good rule of law to an inapplicable factual situation. Undoubtedly, the promissory note in question constituted part of the transaction whereby the sale of the truck was made. The majority points out that it was given in lieu of cash in that transaction. The reasoning, however, of the majority seems to be based on the theory that the note was not a part of the conditional sales “agreement”. The law which I believe should control here is stated in 7 M. J., Evidence, Section 156: “Still another exception to *680the parol evidence rule is that parol evidence is admissible to connect two or more instruments evidencing the same transaction, where the connection does not appear on their face. Where a written instrument contains a reference to some other writing, parol evidence is admissible for the purpose of identifying the writing so referred to.
“Where two papers are executed at the same time between the same parties, in reference to the same subject matter, they must be regarded as parts of one transaction and receive the same construction as if their several provisions were in one and the same instrument. The admission of evidence in regard to the contemporaneous agreement does not in the slightest degree impinge upon the parol evidence rule. Such evidence neither tends to contradict nor to vary the terms of the contract. It simply admits evidence of the entire contract in all of its several parts, as finally concluded, in order to determine the rights of the parties thereunder.” And in 7 M. J., Evidence, Section 159, we find this statement: “Generally, parol evidence is admissible to vary the consideration stated, to show an additional or different consideration, to show want of consideration, or failure of consideration * * Numerous authorities are cited to the text. We are not concerned here with rights of bona fide holders of such a note.
As to the facts of the transaction whereby the sale was made, no dispute exists. The price and terms of the sale having been agreed to, the buyer being unable to make the required down payment, the note in controversy was accepted in lieu of the down payment. A sales contract containing the usual conditions relating to title, not mentioning the note, was executed and delivered at time of delivery of the note. The seller refused to deliver the contract until the note was obtained. Upon breach of conditions of the contract by the buyer, less than fifty per cent of the purchase price having been paid, the seller, as he had the right to do under Code, 40-3-20, elected to retain the truck as his own and make private sale thereof.
Code, 40-3-23, reads: “Where there is no resale, the seller *681may retain the goods as his own property without obligation to account to the buyer except as provided in section twenty-five of this article, and the buyer shall be discharged of all obligation.” Notice that in such circumstances the buyer is “discharged” from “all obligation”, not merely part of the obligations of the sales transaction.
The Uniform Conditional Sales Act undertook to regulate the rights and liabilities of parties entering into such contracts, both the buyer and the seller. As applied to the instant case, the seller had the right thereunder to elect whether he would make sale of the truck, after repossession, in accordance with the provisions of the Act, and thereby preserve rights with reference to collection of any unpaid balance of the sales price, or to treat the truck as his own property and thereby “discharge” the buyer from “all obligation” relating to the sales transaction, not merely the unpaid consideration mentioned in the sales contract. I can see no uncertainty or ambiguity in the words “all obligation”. Is not the promissory note an obligation? I would apply the statute as written by the Legislature, not attempt to add thereto unexpressed limitations.
The seller could have required the down payment to have been paid in cash. He did not elect to do so but, instead, elected to accept an obligation to pay the promissory note. His election could not have had the effect of preventing the obligation from being a part of the sales price, part of the same transaction. Also, the seller could have elected to sell the truck at public auction, as provided by the statute, after repossession, and thereby preserved his right to collect the unpaid purchase price, including the note. Instead, however, he elected to treat the truck as his own, thereby “discharging” the buyer from payment of the unpaid purchase price.
The purpose of the applicable part of the Uniform Conditional Sales Contract Act was to protect an unfortunate buyer from a practice, formerly prevalent among some unscrupulous sellers, of repossessing property under *682any pretense and, after repossession, suing the buyer for the unpaid purchase price. The construction now given the Act by the Court, in effect, gives the seller the same evil and unfair advantage.
The quotations from Corpus Juris Secundum and American Jurisprudence appearing in the majority opinion refer only to the question of failure of consideration, a question not here involved. They make no attempt to interpret or apply a statute such as ours. The holdings referred to in the majority opinion which were not with reference to the Uniform Conditional Sales Act, or any similar Act, are not controlling.
... Being of the views indicated, I respectfully dissent. I am authorized to say that Judge Riley concurs in this, dissent. We would, affirm the action of the trial court.