Thomas

Thomas v. Wright

Good Law
1971 Cal. App. LEXIS 1134·21 Cal. App. 3d 921·98 Cal. Rptr. 874
Court of Appeal of CaliforniaDecember 8, 1971Civ. 38233California2,327 words

Opinion

Opinion

Herndon, J.

Appellant brought this action seeking cancellation and enjoining the foreclosure of a deed of trust on her home by her to secure payment of obligations assumed by her under the provisions of an instrument entitled “Automobile Leasing Contract.” The trial court rendered judgment in favor of defendants and dissolved the previously granted injunction against the foreclosure.

The findings of fact of the trial court are not disputed. The sole issue on appeal is the correctness of the court’s conclusion of law that the contract here in question does not constitute a “Conditional Sale Contract” within the purview of the Automobile Sales Finance Act,- commonly known as the Rees-Levering Act, and found in sections 2981 et seq. of the Civil Code. The act prohibits the seller from taking as security for the contract balance the title to or a lien upon any property other than the motor vehicle which is the subject matter of the conditional sale.

We conclude that the instant contract falls within the coverage of the act with the result that the deed of trust taken by respondents, as security for the obligations created by the contract is invalid and unenforceable under the…

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