Ferraro

Defendants Pacific Finance Corporation (Pacific) and William Steitz, doing business as Bill Steitz Motor Sales (Steitz), appeal from a judgment in favor of plaintiff Pat Ferraro, entered upon jury verdicts on July 12, 1968, nunc pro tunc as of January 31, 1968. The action was brought for damages resulting from the alleged conversion by Pacific and Steitz of Ferraro’s automobile.

At an earlier trial the court directed the jury to return a verdict for Ferraro’s compensatory damages. By the instructions they were also permitted to determine whether exemplary damages should be awarded, and if so, the amount. The jury fixed the compensatory damages at $2,812 and awarded exemplary damages of $15,000 against Pacific and $8,000 against Steitz. On Pacific’s and Steitz’ motions for a new trial, a limited new trial “solely on the issue of the amount of punitive damages to be assessed” was granted.

The judgment from which this appeal is taken is based upon the verdict for compensatory damages of $2,812 returned by the first jury, and exem *345 plary damages of $25,000 against Pacific and $8,000 against Steitz, returned by the second jury after the limited retrial. Pacific has also…

I concur in the decision reached by my colleague Justice Elkington and in the rationale of his decision, excepting that I do not subscribe to the suggestion that the repossession of the vehicle may have been felonious or to the suggestion that the course of conduct employed in this case by Pacific Finance Corporation is pursuant to a company policy of repossessing cars which it has no right to repossess. In this case both Pacific and the dealer Steitz acted maliciously and oppressively. With particular regard to Pacific’s conduct I am satisfied that the record supports the inference that, as between Pacific and Steitz, the former, as the assignee and owner of the conditional sales contract under which the vehicle was sold, had it within its power to compel Steitz, who was Pacific’s agent in the repossession, to return the vehicle to plaintiff Ferraro, at least up to the time Pacific sold the contract back to Steitz. In my opinion Pacific was not justified in reselling the contract to Steitz under the circumstances. Under the “Repurchase Agreement” executed as part of the assignment from Steitz to Pacific the former agreed to pay the latter the unpaid balance under the contract…

I dissent.—The award of $25,000 against Pacific Finance Corporation shocks my conscience (see Cunningham v. Simpson (1969) 1 Cal.3d 301, 308-309 [ 81 Cal.Rptr. 855 , 461 P.2d 39 ]) because as I view the evidence the defendant did not act to prevent the restoration of the automobile to its rightful owner after the second purchaser demanded its return. Although there was no formal reassignment or repurchase of the contract by the dealer until September 15, 1966, it was obvious, from the relationship of the parties and the failure of the dealer to furnish the indicia of ownership, that the dealer was liable to the lender for the original purchaser’s contract balance. Under these circumstances the dealer, as between himself and the lender, was entitled to the security on satisfying that liability. (Civ. Code, § 2849.) It was the dealer, not the lender, who retained and refused to return the car after August 4, 1966. The subsequent transfer of the contract back to the dealer merely evidenced the relationship which existed and recognized the dealer’s right to the security, as against the lender whom he was bound to indemnify. The fact that this transfer enabled the dealer to further…

Defendants Pacific Finance Corporation (Pacific) and William Steitz, doing business as Bill Steitz Motor Sales (Steitz), appeal from a judgment in favor of plaintiff Pat Ferraro, entered upon jury verdicts on July 12, 1968, nunc pro tunc as of January 31, 1968. The action was brought for damages resulting from the alleged conversion by Pacific and Steitz of Ferraro's automobile.

At an earlier trial the court directed the jury to return a verdict for Ferraro's compensatory damages. By the instructions they were also permitted to determine whether exemplary damages should be awarded, and if so, the amount. The jury fixed the compensatory damages at $2,812 and awarded exemplary damages of $15,000 against Pacific and $8,000 against Steitz. On Pacific's and Steitz' motions for a new trial, a limited new trial "solely on the issue of the amount of punitive damages to be assessed" was granted.

The judgment from which this appeal is taken is based upon the verdict for compensatory damages of $2,812 returned by the first jury, and exemplary damages of $25,000 against Pacific and $8,000 against Steitz, returned by the second jury after the limited retrial. (1)…