Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.

IN RE GUERTLER

DISTRICT COURT, E.D. PENNSYLVANIA


December 30, 1935

In re GUERTLER

The opinion of the court was delivered by: DICKINSON

On Petition for Review.

DICKINSON, District Judge.

The delay in disposing of this cause has been due to the disability of the judge who heard the argument.

 The petition for review raises the question, which seemingly will not down, of whether a given transaction was a sale or a bailment. It is to be regretted that the law of transactions, such as the instant one, has not been settled. That the question here raised recurs so often is due to the present-day system of buying on credit and to the insistent of money lenders and vendors upon holding the thing sold as security for the purchase price. What happens is that what is really a chattel mortgage is asked for and given. There is a long-established policy of the law in favor of execution creditors and innocent purchasers, to refuse to give effect to secret liens against personal property in the possession of the owner. To escape the consequences of this law, the lienholder changes the evidence of the transaction from the form of a pledge to the form of a bailment and assumes that a change of forms and names has wrought a change in things. It seems that nothing will drive from the minds of vendors the right to a vendor's lien for unpaid purchase money. The large investments in these credit transactions has induced the Legislature to so far yield to the pressure as to pass the Conditional Sales Act, but this does not serve the purpose sought. Devices without number have been resorted to. One is that employed here. The vendor company does not extend credit to the purchaser, but it provides a financing company which does. The resourceful counsel for the claimant here has supported the plan by an argument as good as any which could be presented.The learned referee has put his finger upon the weak spot in it by his finding that the transaction was in fact a loan of money not a bailment. The reasons given in support of this finding are beyond the reach of successful attack. The words of Mr. Justice Schaffer in Root v. Republic Acceptance Corp., 279 Pa. 55, 123 A. 650, quoted by the referee, should put an end to all these futile attempts to change things by merely changing names.

 The petition for a review is denied, the findings of the referee approved, and the order made affirmed and confirmed.

19351230

© 1992-2004 VersusLaw Inc.



Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.