Lawrenson v. Worcester Lunch Car & Carriage Manufacturing Co.
Lawrenson v. Worcester Lunch Car & Carriage Manufacturing Co.
Opinion of the Court
This is an action of contract or tort. The first count of the declaration alleges the breach of covenants
The evidence tended to prove, and the jury would have been warranted in finding, that in June, 1927, one Cronin wished to secure a portable lunch car and that on August 20, 1927, the defendant delivered to him such a car at its place of business in Worcester, in accordance with the terms of a "conditional sale agreement,” signed by Cronin, one term of which was that title to the car “is now and is to be” in the defendant until the full amount of the purchase price should be paid. At that time, Cronin owned a lot of land in Lowell which was subject to a mortgage of $3,500 to the Lowell Trust Company, hereinafter referred to as the trust company. Before Cronin purchased the car, he saw one Harrigan, the president of the trust company, and told him that he proposed to demolish the old building on his land and to set up “a portable lunch car [to be acquired] from the defendant under a conditional sale agreement whereby title thereto would remain in the seller until the purchase price had been fully paid.” The president, for the trust company as mortgagee, consented to the demolition of the old building upon payment of $1,000
Cronin operated the car until September, 1928, when he arranged with the plaintiff to transfer to him his interest under the conditional sale agreement, and the business conducted in the car, and also to rent to him the- land upon which the car stood. Thereupon Cronin and the plaintiff’s brother went to Worcester, where they saw the defendant’s treasurer and requested that the defendant consent to the assignment of Cronin’s interest under the conditional sale agreement. The treasurer indicated the defendant’s willingness to assent, provided all overdue payments were made and that the plaintiff would guarantee all payments falling due thereunder and compliance with all obligations of the conditional vendee. As a result, the plaintiff’s brother paid the sums that were overdue and on September 10, 1928, the plaintiff executed and delivered to the defendant an instrument under seal that recited the “lease” to Cronin, the transfer of all of Cronin’s rights under the “lease” to the plaintiff and “in consideration of said transfer to me . . . [the plaintiff does] hereby guarantee to . . . [the defendant] all payments falling due under said lease, and . . . [does] further agree to , . . [the defendant] full compliance with
In May, 1930, the trust company instituted proceedings to foreclose the Cronin mortgage. Harrigan, its president, sent for Cronin and the plaintiff’s brother, and an agreement was reached whereby the latter should bid the property in at the foreclosure sale and should execute his promissory note for $4,000, this being the amount then due on the mortgage, to be secured by a new first mortgage on the land, “with the buildings thereon.” This arrangement was carried out and the plaintiff’s brother reported to him “all the arrangements that had been made” and what had been done. What was done was “to help and protect him” (the plaintiff) and the plaintiff “was fully
In May, 1931, Harrigan, the president of the trust company, as a result of information obtained at his request from the defendant by the plaintiff’s brother, wrote to the defendant, on the letter head of the trust company, to the effect that the plaintiff had shown “us” the defendant’s letter which stated the amount "he now owes you” on the "lunch wagon,” and requesting that- the defendant have the insurance policy which covered the car made payable to the trust company "as second mortgagee, coming, of course, after your interests.” The defendant complied with this request to the extent of having the policy made payable to the trust company "as its interest may appear.” Except for this correspondence the defendant never had any knowledge of the encumbrances on the land, of the interest of the trust company therein or of the relations of the trust company with Cronin or with the plaintiff or his brother.
On June 8, 1933, the commissioner of banks, in possession of the trust company, for breach of the conditions of the mortgage given by the plaintiff’s brother, caused entry to be made for the purpose of foreclosing the mortgage, took possession of the car and completed the foreclosure by sale on November 23, 1933, to the trust company. On November 27, 1933, the commissioner brought a bill in equity against the plaintiff as more fully appears hereinafter.
It was agreed at the trial that no change had been made in the location of the lunch car and cook house on the land or in the manner in which the lunch car was situated with respect to the land, or to the cook house, since the original installation by Cronin.
A conditional vendee cannot pass title to the subject of a sale, even to a bona fide purchaser without notice. Bousquet v. Mack Motor Truck Co. 269 Mass. 200, and cases cited. Although there is a special property in the conditional vendee which he may sell, assign or mortgage, yet the
The plaintiff’s contention as to his rights under the first and second counts of his declaration is stated in his brief as follows: “The only question before this court is whether the defendant is liable for the breach of its expressed warranty of title contained in its bill of sale dated September 9, 1931 . . . and the warranty made by it at the time the plaintiff took over Cronin’s contract [on September 10, 1928] and guaranteed the payment thereof, that 'said lunch car was then and would always remain personal property and could be moved by the defendant [sic] at any time he wished.’” “On both occasions the lunch car was not personal property, but it had become real estate and did not belong to the defendant.” We are asked in the first instance to consider whether there was any breach of warranty of title on September 9, 1931. We do not think there was. Cronin’s assignment to the plaintiff of his interest in the conditional sale agreement conveyed merely the right which he then possessed to the lunch car. American Bridge Co. of New York v. Boston, 202 Mass. 374, 376. At the time of the assignment, Cronin had already installed the car on his land in the manner and condition in which it remained throughout. If this installation amounted to
One condition of the sale agreement, which the plaintiff took over by assignment, was that title to the car was to remain in the defendant until the purchase price was paid in full. Nothing was done by the defendant or by anyone else with its knowledge, express or implied, to impair or affect its title to the car, and if the plaintiff has lost the car it is through no fault of the defendant. On the contrary, the plaintiff, acting through his brother, set in motion the chain of events which unfortunately culminated in his loss. He had a duty with respect to the defendant to protect the latter’s title to the car. As was said in
We have grave doubts as to anything being open to the plaintiff upon his assertion of an alleged warranty made by the defendant, at the time the plaintiff took over Cronin’s contract and guaranteed the payment thereof, that “said lunch car was then and would always remain personal property and could be moved by the defendant [)sfc] at any time he wished.” The question does not appear to be open upon the pleadings and we doubt if it was raised at the trial. But if we assume that it is before us, the result is not changed. From what has been said there is nothing in the record to show that the car was not treated by all parties as personal property on September 10, 1928, when the statement of the defendant’s treasurer is alleged to have been made. The statement is to be so interpreted as to give effect to the intent of the parties, in the light of the circumstances in which it was made. Peck v. Conway, 119 Mass. 546. Lively v. Rice, 150 Mass. 171. Clapp v. Wilder, 176 Mass. 332, 341. A reasonable construction of the alleged statement is that, in so far as the defendant was concerned, the lunch car would remain personal property and that it could be moved by the plaintiff without interference on the defendant’s part. To say, in the circumstances, that the defendant promised anything more than this would be to impute to the parties the making of an “absurd and unreasonable contract.” Gill v. Ferrin, 71 N. H. 421, 423. If the statement is regarded as one of warranty, there has been no breach.
A verdict was directed rightly for the defendant on the third count of the declaration, which alleges that the de
On November 27, 1933, the commissioner of banks brought a bill in equity against the present plaintiff "to establish the ownership of said Lowell Trust Company of said lunch car,” and to restrain the plaintiff in the case at bar from removing it. This was more than two years after the plaintiff had completed the payments due on the car and had received his bill of sale. In the case at bar, the judge, over the defendant’s objection, admitted the finding of the master in the equity suit that “so far as it is matter of fact, . . . the lunch car in question has become part of the realty,” and also the final decree in the suit which enjoined the defendant therein, the present plaintiff, from "interfering with the plaintiff’s right to possession of the premises . . . [and] from removing, or attempting to remove from said premises, or interfering with the plaintiff’s control over, the lunch or dining car on said premises.” The present plaintiff tendered the defence of this suit in equity to the present defendant, which it neither assumed nor participated in, although it furnished the plaintiff with the original conditional sale agreement, the agreement signed by the plaintiff and its original ledger sheets showing its account with Cronin and the plaintiff in relation to the car. We do not think that the evidence which was admitted establishes liability on the part of the defendant for breach of warranty of title. The case does not come within the rule stated in Chamberlain v. Preble, 11 Allen, 370, 375, Richstein v. Welch, 197 Mass. 224, 230, Gallison v. Downing, 244 Mass. 33, 38. From what has been said already, the defect, if any, in the plaintiff’s title arose through no act or default of the defendant. Such a defect, if any, was outside the scope of the defendant’s warranty, and any adjudica
In accordance with the terms of the report the entry must be
Judgment for the defendant.
Reference
- Full Case Name
- Ernest G. Lawrenson v. Worcester Lunch Car and Carriage Manufacturing Company
- Cited By
- 1 case
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- Published