Superior Court of San Diego County
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Procedural Posture
Appellants, buying corporation and guarantor, sought review of a decision from the Superior Court of San Diego County (California) granting judgment to respondent selling corporation and awarding the selling corporation the amount of $ 8,908 on account of alleged deficiency on a terminated conditional sale of a truck crane with equipment, and $ 2,919 on an alleged open book account.
Overview: caci fraud
A selling corporation filed suit against a buying corporation and its guarantor alleging a deficiency on a terminated conditional sale for a self-propelled crane and equipment and for an alleged open book account. Upon default by the buying corporation and in accordance with the terms of the contract, the selling corporation retook possession of the crane and contended it had suffered a loss on repossession. The loss of $ 8,908 was computed by deducting the estimated retail value of the crane from the total unpaid balance on the contract. The court reversed the trial court's judgment and award on the deficiency of the terminated conditional sale. The court held that the trial court did not have the power to render a deficiency judgment against the buying corporation and guarantor as no right to recover a deficiency under the sales terms of the contract had crystallized. The right to recover a deficiency depended on sale of the crane within a reasonable time and the record showed that the selling corporation had failed to give notice of intention to sell and in fact the court found the crane had never been sold. The court affirmed the award of $ 2,919 on the open book account.
Outcome
The court affirmed the trial court's judgment for the buying corporation and an award of $ 2,919 on an open book account but the court reversed the award of $ 8,908 on a deficiency of a terminated conditional sale. The court concluded that the trial court did not have the power to render a deficiency judgment against the buying corporation and its guarantor.
Appellants, buying corporation and guarantor, sought review of a decision from the Superior Court of San Diego County (California) granting judgment to respondent selling corporation and awarding the selling corporation the amount of $ 8,908 on account of alleged deficiency on a terminated conditional sale of a truck crane with equipment, and $ 2,919 on an alleged open book account.
Overview: caci fraud
A selling corporation filed suit against a buying corporation and its guarantor alleging a deficiency on a terminated conditional sale for a self-propelled crane and equipment and for an alleged open book account. Upon default by the buying corporation and in accordance with the terms of the contract, the selling corporation retook possession of the crane and contended it had suffered a loss on repossession. The loss of $ 8,908 was computed by deducting the estimated retail value of the crane from the total unpaid balance on the contract. The court reversed the trial court's judgment and award on the deficiency of the terminated conditional sale. The court held that the trial court did not have the power to render a deficiency judgment against the buying corporation and guarantor as no right to recover a deficiency under the sales terms of the contract had crystallized. The right to recover a deficiency depended on sale of the crane within a reasonable time and the record showed that the selling corporation had failed to give notice of intention to sell and in fact the court found the crane had never been sold. The court affirmed the award of $ 2,919 on the open book account.
Outcome
The court affirmed the trial court's judgment for the buying corporation and an award of $ 2,919 on an open book account but the court reversed the award of $ 8,908 on a deficiency of a terminated conditional sale. The court concluded that the trial court did not have the power to render a deficiency judgment against the buying corporation and its guarantor.
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