Klingbiel v. Commercial Credit Corporation, Inc.

439 F.2d 1303 (10th Cir. 1971)

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Nature of the Case

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Facts

P went outside his home on the morning of June 22, 1966, and found his brand new (1966) Ford Galaxie 500 gone. P’s car had been repossessed by D. P sued D for conversion. P had purchased a new car from a Ford dealership using a purchase mortgage contract that required a down payment and a series of monthly installments. The installment contract showed a time sales price of $4,907.56. P made a down payment of $400.00, tendering to Dealer a personal check in the amount of $300.00 and a second check in the amount of $100.00, the latter being signed in his wife's name. This left a time balance of $4,504.56, to be paid in 36 equal, successive monthly installments of $125.21, the payments to commence on June 26, 1966, under the mortgage contract containing an acceleration and enforcement provisions. Dl shortly became the assignee, on a dealer recourse basis, for the consideration of $3,400.00. Before P's first monthly installment became due, D felt insecure and repossessed the automobile. This was done on June 22, 1966. That was four days before P's first monthly installment was due and at a time when he was not in default. D gave no notice whatsoever of the repossession. The Judge held that acceleration was permissible without notice or demand. But upon acceleration, D then had to make demand or give notice to P so that the admitted failure of notice/demand made D's repossession an unlawful conversion. D had failed to give notice and was held liable for conversion. D appealed.