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ASSOCIATES FINANCIAL SERVICES COMPANY v. GEORGE DELICH (04/12/79)

submitted: April 12, 1979.

ASSOCIATES FINANCIAL SERVICES COMPANY, INC.,
v.
GEORGE DELICH, APPELLANT



No. 1292 April Term, 1978, Appeal from the Order of the Court of Common Pleas of Washington County, Civil Division, No. 545 September Term, 1976.

COUNSEL

George Retos, Jr., Washington, for appellant.

Reed J. Davis, Pittsburgh, for appellee.

Price, Hester and Montgomery, JJ.

Author: Price

[ 272 Pa. Super. Page 229]

The instant proceeding was brought by appellee to secure a deficiency judgment arising from the foreclosure of a security interest in a tractor sold under an installment sales contract. Appellant contends that the court erred in permitting appellee to recover various items of repair as a part of the deficiency judgment and in concluding that the retention by appellee of the tractor and the transfer of the title to itself prior to resale did not effect an accord and satisfaction thereby discharging appellant's liability for a deficiency judgment. Finding no error in the trial court, we affirm.

On October 1, 1974, appellant purchased a 1975 Marmon tractor under a conditional sales contract for a total consideration of $34,970.90 (including finance charges of $7,270.00).

[ 272 Pa. Super. Page 230]

On the same date, the dealer assigned the contract to appellee. Appellant made an initial downpayment of $4,001.00 and subsequently made nine additional payments totaling $8,696.00. Thereafter, he defaulted in the payments, and appellee instituted an action in replevin in the Court of Common Pleas of Washington County. However, appellant voluntarily relinquished the tractor.

After receiving possession, appellee performed repairs totaling $2,479.60 and eventually resold the tractor for $26,000.00. Upon crediting appellant with the receipts from the sale of the tractor, appellee filed an action to recover an alleged deficiency of $2,135.70. The case was tried before a panel of arbitrators and on January 31, 1977, an award was entered in favor of appellee in the amount of $2,135.70. Appellant filed an appeal to the Court of Common Pleas of Washington County, and on April 24, 1978, a non-jury trial was held in that court. On May 5, 1978, the Honorable Charles G. Sweet, President Judge of the Court of Common Pleas of Washington County, returned a verdict essentially affirming the decision of the panel of arbitrators, and awarding appellee a judgment in the amount of $2,000.00. Exceptions were filed and argued in an en banc court which affirmed the verdict of the trial judge. It is from that order that appellant appeals.

Appellant's first assignment is that the trial court erred in permitting appellee to recover the costs of repairs made to the tractor after repossession but prior to resale. It is appellant's contention that because the costs of repair are not included in § 27 of the Motor Vehicle Sales Finance Act, Act of June 28, 1947, P.L. 1110, § 27, as amended, 69 P.S. § 627 (relating to recoverable items in an action for a deficiency judgment), such costs are therefore impliedly excluded as a recoverable item.*fn1 We disagree and conclude

[ 272 Pa. Super. Page 231]

    that reasonable costs of repair performed subsequent to repossession and prior to resale are properly chargeable to the buyer and are ...


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