Wednesday, December 25, 2013

Ford Motor Credit Co. v. Morgan case brief

Ford Motor Credit Co. v. Morgan case brief summary
536 N.E.2d 587 (1989)

CASE SYNOPSIS
Defendants appealed from a judgment of the Superior Court Department (Massachusetts) denying them recovery on their counterclaims in an action brought by the plaintiff to recover amounts due on an automobile installment contract and to recover possession of the automobile, claiming that the jury should have been permitted to assess damages.

CASE FACTS
Defendants appealed a judgment denying them recovery on their counterclaims in an action brought by plaintiff, as assignee of the seller, to recover amounts due on an automobile installment contract.

DISCUSSION

  • The court found no merit to defendants' assertions that the language of the contract allowed them affirmative recovery beyond the amount they paid. 
  • To expose plaintiff to further affirmative liability would place plaintiff in the position of an absolute insurer or guarantor of the seller's performance. 
  • The court rejected the claim that such liability should be extended to plaintiff in light of its determination that Mass. Gen. Laws ch. 106, § 9-318, did not put plaintiff, as assignee, in the shoes of the assignor for purposes of being affirmatively liable for claims that could be brought against the assignor. 
  • Defendants were not entitled to affirmative recovery against plaintiff.

CONCLUSION
The court affirmed the judgment, finding that defendants were not entitled to affirmative recovery against plaintiff; defendants were only entitled to the judgment in their favor on plaintiff's original claim.

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