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STERLING ACCEPTANCE CO. v. GRIMES. (03/22/61)

March 22, 1961

STERLING ACCEPTANCE CO., APPELLANT,
v.
GRIMES.



Appeal, No. 142, April T., 1960, from judgment of Court of Common Pleas of Beaver County, Dec. T., 1958, No. 255, in case of Sterling Acceptance Co. v. Patrick Grimes, Jr. and George Homish, trading as Homish Sales & Service. Judgment affirmed.

COUNSEL

R. Clifton Hood, with him Evans & Hood, for appellant.

H. Beryl Klein, for appellee.

Before Rhodes, P.j., Gunther, Wright, Woodside, Ervin, Watkins, and Montgomery, JJ.

Author: Woodside

[ 194 Pa. Super. Page 504]

OPINION BY WOODSIDE, J.

Sterling Acceptance Company brought an action in replevin with bond against Patrick Grimes, Jr. and George Homish to obtain possession of a 1958 Dodge automobile which Grimes had purchased new from Homish, a dealer. The acceptance company claimed the automobile because of an encumbrance in its favor placed upon a dealer's certificate of title issued to Homish. When the case was tried, the court directed the jury to bring in a verdict in favor of Grimes, but allowed it to determine the value of the automobile at the time it was replevied. The jury awarded Grimes $3300. After motions for judgment n.o.v. and for a new trial were refused by the court below, the acceptance company appealed from the entry of judgment against it for the above sum.

Homish, who traded as Homish Sales & Service, was an automobile dealer in Aliquippa, Beaver County, for approximately 40 years. On May 29, 1958, he sold Grimes a new 1958 Dodge automobile for which Grimes paid him the sale price in full, including the sales tax and the fee for registration of the title. Grimes paid Homish $2060 in cash and transferred to Homish title to a 1955 Dodge automobile for which he was given an allowance of $1636.14. Possession of the

[ 194 Pa. Super. Page 505]

    new Dodge was given to Grimes. An application for title to the new car was signed by Grimes and given to Homish for mailing to the Bureau of Motor Vehicles in Harrisburg. The purchase of the automobile by Grimes was made from Homish's inventory in the ordinary course of Homish's business at his place of business in Aliquippa. When the certificate of title did not arrive, Grimes contacted Homish several times, and was told that the delay was caused by the authorities in Harrisburg. Finally, after frequent evasions, Homish told Grimes that he was in financial difficulties, and that he had not mailed the application for the certificate of title.

Over two years prior to the sale of the Dodge to Grimes, a Blanket Security Agreement was filed by the acceptance company in the office of the Prothonotary of Beaver County. The agreement covered a security interest of the plaintiff in the sale of all new and used vehicles by Homish. This agreement was filed in compliance with § 9-302 of the Uniform Commercial Code of April 6, 1953, P.L. 3, 12A P.S. § 9-302.*fn1 The agreement provided, inter alia, that "the following (proceeds) (products) of the property are also covered: Proceeds of sale of all motor vehicles covered by this statement, including money, chattel paper and motor vehicles received in trade."

In addition to the above agreement, Homish executed and delivered to the plaintiff a Trust Receipt Security Agreement which describes the automobile which is the subject of this suit. To this agreement is attached a judgment note for $2614.14 in which Homish ...


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