Weber & Beckett, Inc. v. Le Clair

Action for conversion.

Plaintiff is a dealer in new Chrysler automobiles in the city of Modesto. On October 1, 1929, one L. D. Moran visited plaintiff’s place of business and purchased an automobile under a conditional sales contract. The price of the car was $1640. Moran paid #100 on account and in addition thereto gave to plaintiff as security two diamonds worth from #200 to #450. The balance of the purchase price was to be paid two days thereafter. The contract of sale and purchase reserved title in the seller. After inquiry concerning the financial standing of Moran, however, plaintiff signed a “Report of Sale by Registered Dealer” in the form required and in compliance with section 45% (b), chapter 752, page 1424, Statutes of 1927 of the laws of the state, and delivered it to Moran. This report of sale allowed on its face the legal and equitable ownership to pass to Moran. The following day Moran presented the report of sale to the motor vehicle department and there was issued to him the certificate of legal ownership, known as the pink slip. Moran immediately thereafter, for a valuable consideration, sold and delivered the car to one Earl Le Clair, a dealer in used…