Sheridan Suzuki, Inc. v. Caruso Auto Sales

110 Misc.2d 823, 442 N.Y.S.2d 957 (1981)

Facts

Suzuki (P) sold a motorcycle to Bouton, who gave P a check for the purchase price. In return, P gave Bouton possession of the motorcycle, a signed bill of sale marked 'paid in full,' and registration of the motorcycle. P applied for a Certificate of Title in Bouton's name. The next day, Bouton sold the motorcycle to Caruso (D) at a significant discount: he gave D possession, signed over the registration, and promised that he would transfer the Certificate of Title as soon as he received it. D called P to confirm that Bouton had purchased the motorcycle from them. P confirmed the purchase. After the sale to D was completed, Bouton's check to P was dishonored. P stopped processing of the Certificate of Title. Bouton disappeared from the area. P sued to recover the motorcycle from D.