COMMONWEALTH BANKING CORP. v. MEADE

Replevin — Automobile — Bailment lease — Delivery — Possession — Title — Sale — Rights of execution creditor of vendee — Judgment n.o.v.

In an action of replevin to recover an automobile, the testimony established that a dealer in automobiles entered into a written contract with a customer for the sale of a new automobile. The contract provided that the customer was to be credited a certain sum as a trade-in allowance for his used car and that the balance of the purchase price was to be financed by the plaintiff. After the execution of the order the dealer delivered a bill of sale for the car to the plaintiff and the latter entered into a bailment lease with the customer. The plaintiff did not receive the used car and never had possession of the new car. Subsequently the defendant, a creditor of the vendee of the car, obtained a judgment against him, issued execution and purchased the car at the Sheriff's sale.

Held: (1) That the transaction between the customer and the plaintiff, so far as the defendant was concerned, was that of debtor and creditor, (2) that the defendant, being a bona fide creditor can sustain his title to the car and (3) the order of the court below entering a judgment for the defendant non obstante veredicto, will be affirmed.

Where persons trafficking in and loaning money on automobiles, execute a number of papers giving a similitude of the passing of title, the courts will look through the screen of paper titles to ascertain what was the real situation.

When a vendee or pledgee takes title to personal property, without taking possession of it, he takes the risk of the integrity and solvency of his vendor or pledgor, when the rights of subsequent bona fide purchasers or of levying creditors arise.

Argued December 9, 1931.