Narrative Opinion Summary
In this case, Right Touch of Class, Inc., a used car dealer, sold a vehicle to Specialty Car Sense, Inc., which subsequently resold it to Chinedum I. Ironkwe with financing from Superior Bank. After Specialty's payment check to Right Touch was dishonored, Superior Bank sought a court order to compel Right Touch to transfer the car title to Ironkwe. The trial court granted summary judgment for Superior Bank, holding that under Georgia law, title passes upon delivery unless otherwise specified, which was not the case here. Right Touch's claim that title transfer was contingent upon payment was unsupported by the sale documents. The court found that Specialty had obtained title upon delivery, and Ironkwe, as a buyer in the ordinary course of business, acquired all of Right Touch's interest in the car. Specialty's lack of a certificate of title did not impede its ability to transfer ownership. Thus, Right Touch's remedy for the dishonored check was against Specialty, not Ironkwe or Superior Bank. The trial court's decision, which included an award of damages to Superior Bank for Right Touch's refusal to transfer title, was affirmed by appellate judges.
Legal Issues Addressed
Buyer in the Ordinary Course of Businesssubscribe to see similar legal issues
Application: Ironkwe, as a buyer in the ordinary course of business, acquired all of Right Touch's interest in the car, regardless of the dishonored check from Specialty Car Sense, Inc.
Reasoning: Under the law, Ironkwe, as a buyer in the ordinary course of business, acquired all of Right Touch's interest in the car.
Certificate of Title Not Required for Ownership Transfersubscribe to see similar legal issues
Application: Ownership of the car can be transferred without a certificate of title, allowing Specialty Car Sense, Inc. to effectively transfer title to Ironkwe.
Reasoning: Specialty's failure to obtain a certificate of title did not affect its ownership of the car or its ability to transfer title to Ironkwe.
Effect of Dishonored Check on Title Transfersubscribe to see similar legal issues
Application: Right Touch's recourse for the dishonored check lies with Specialty Car Sense, Inc., and does not affect Ironkwe's acquisition of title or Superior Bank's lien.
Reasoning: Right Touch's recourse for the dishonored check lies with Specialty, not Ironkwe or Superior Bank.
Transfer of Title upon Delivery under Georgia Lawsubscribe to see similar legal issues
Application: The court applied the principle that title passes to the buyer upon delivery unless explicitly stated otherwise in the sale documents, determining that Specialty Car Sense, Inc. obtained the title upon receiving the car from Right Touch.
Reasoning: Under Georgia law, title passes upon delivery unless explicitly stated otherwise, establishing that Specialty obtained title upon receiving the car for the purpose of selling it to Ironkwe.