Jones v. Morris Plan Bank of Portsmouth

The Plaintiff brought suit against the Defendant in an action for damages incurred when the Defendant converted the Plaintiff’s car. The Plaintiff had purchased a car from a used car dealer and traded in his own vehicle to make the unpaid balance due in the sum of $428.40. It was to be paid in 12 monthly installments of $35.70. The note contained a provision that stated if any installment was not paid, that the whole note became due at once. The seller retained title to the car until the Plaintiff paid the balance. The Plaintiff did not pay his May and June installments and the Defendant went to court to obtain payments for those months. The Plaintiff never showed up in that case and judgment was entered for the Defendant. When the Plaintiff did not pay his July statement, the Defendant once again went to court to obtain judgment. The Defendant then took possession of the car without the Plaintiff’s consent and sold it to apply the proceeds to the note. The Plaintiff then filed this action claiming that the Defendant was precluded from bringing the July nonpayment to court because when the Defendant sought relief for the May and June payments, the whole note became due. The Defendant was estopped from bring the July claim and waived its right to the unpaid balance and therefore, was not entitled to convert the car.