92 Pa. Super. 463 | Pa. Super. Ct. | 1927
Argued October 24, 1927.
This is an action in replevin. At the first trial the court below directed a verdict for the defendant and subsequently granted a new trial on the ground that some questions of fact were involved. After we affirmed the order granting a new trial (
The following is a summary of the material facts stipulated: On August 3, 1923, the plaintiff was the owner of a certain Jordan automobile, which is the subject of the writ of replevin issued in this case. On that day, by a written instrument constituting a bailment, it leased the automobile to one Taylor for the term of eight months from the date thereof for a rental of $1,860, $1,060 of which was paid by Taylor at the time of the execution of the lease and the delivery of the automobile to him. The lease provided that the balance of $800 should be paid in eight monthly installments of $100 each, payable on the third day of each month following the date of the lease. At the same time Taylor gave the plaintiff a promissory note for the amount of the rent reserved. The lease provided further for the retaking of possession of the automobile by the plaintiff and the forfeiture of the rights of Taylor therein upon his failure to make the stipulated payments of rent. On the same day the plaintiff endorsed the note and had it discounted at *465 a bank in Scranton, Pennsylvania, and assigned the lease to said bank as collateral security for the note. The form of the assignment does not appear. In May, 1924, a writ of fieri facias issued out of the court below against Taylor, under which the sheriff duly levied upon and sold and delivered possession of said automobile to the defendant in the present suit. At the time of the issuance of said writ Taylor was in default in his payments of rent under the lease. When the sheriff offered the automobile for sale, public notice was given to all bidders that the plaintiff herein claimed title thereto. On June 2, 1924, the writ of replevin in this suit issued and the automobile was seized thereunder by the sheriff and taken from the possession of the defendant and delivered to the plaintiff. On June 9, 1924, the plaintiff obtained possession of the lease and note from the bank and all rights of the bank in respect to said note and lease ceased on that date.
In our view the disposition of this appeal turns upon the following question of law: Did the plaintiff, on the date of the institution of the suit, have a present right of possession of the automobile as against the defendant? It is unquestioned that it did unless the assignment and delivery of the lease to the bank as collateral security for the payment of the note deprived it of that right. The assignment was in legal effect a pledging of the chose in action as collateral security for the payment of the note. It is well settled that upon a contract of pledge the general property in the thing pledged remains in the pledgor and only a special property vests in the pledgee and the latter acquires no interest in the property except as security for his debt. See Collins' Appeal,
The judgment is affirmed.