Court Opinion

ID: 9726277
Source: CourtListenerOpinion
Date Created: 2023-08-26 12:40:19.355059+00
Date Added: 2024-06-11T18:25:24.866792
License: Public Domain

SIMS, J.
I dissent.—The award of $25,000 against Pacific Finance Corporation shocks my conscience (see Cunningham v. Simpson (1969) 1 Cal.3d 301, 308-309 [81 Cal.Rptr. 855, 461 P.2d 39]) because as I view the evidence the defendant did not act to prevent the restoration of the automobile to its rightful owner after the second purchaser demanded its return. Although there was no formal reassignment or repurchase of the contract by the dealer until September 15, 1966, it was obvious, from the relationship of the parties and the failure of the dealer to furnish the indicia of ownership, that the dealer was liable to the lender for the original purchaser’s contract balance. Under these circumstances the dealer, as between himself and the lender, was entitled to the security on satisfying that liability. (Civ. Code, § 2849.) It was the dealer, not the lender, who retained and refused to return the car after August 4, 1966. The subsequent transfer of the contract back to the dealer merely evidenced the relationship which existed and recognized the dealer’s right to the security, as against the lender whom he was bound to indemnify. The fact that this transfer enabled the dealer to further litigate the matter of ownership, does not indicate that the lender encouraged or joined in the dealer’s retention and ultimate disposition of the automobile. Although the lender could waive its own interest in the automobile, it could not release the rights which the dealer had, in what had been intended to be the security for the performance of the original purchaser’s loan, without forfeiting its rights against the dealer. (Civ. Code, §§ 2819, 2849 and 2854.) It had no choice other than to leave the determination of the validity of the transfer from Bowers to Ferraro to the dealer.
Under these circumstances I would grant a new trial as to the defendant Pacific unless the plaintiff consented to a remittitur to $8,000 against that defendant. (See Luke v. Mercantile Accept. Corp. (1952) 111 Cal.App.2d 431 [244 P.2d 764].)