Verp & Leddy

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Litigating Motor Vehicle Accident Lawsuits: Combating the Transfer of Ownership Defense

If you have been injured in a motor vehicle accident it is crucial to determine not only who the operator of the other vehicle was, but who the owner was at the time of your accident.  This is not as simple a concept as it would seem in some instances. Often, defendants in transportation lawsuits will take the position that they were not the owner of the vehicle involved in the accident.  What can you do to contest this? You retain competent counsel who knows how to establish ownership of a vehicle.

According to The State of New Jersey Motor Vehicle Commission (MVC), vehicle ownership is transferred via the following process in the State of New Jersey:

  1. The seller must remove the plates and surrender them to any MVC agency or Regional Service Center, unless the plates are being transferred to another vehicle (plates can be transferred to another vehicle, but not to another owner).

  2. Sign the reverse side of the Title and give it to the buyer, with the following filled in:

    1. Buyers Name and Address

    2. Date of Sale

    3. Mileage Odometer Reading

    4. Sale Price (Would be “Gift” as a donation)

  3. The buyer must sign the back of the title and insert his or her driver license or corpcode number.

  4. The buyer must then visit an MVC agency to transfer the title, complete registration, and receive the plates.

Relevant New Jersey statutes address the issue of transfer of ownership also. NJSA 39:10-9 states:

When a used motor vehicle is sold in this State, the seller shall, except as provided in section 39:10-15 of this Title, execute and deliver to the purchaser, an assignment of the certificate of ownership or an assignment of the bill of sale issued prior to October 1, 1946. If a security interest exists at the time of such sale or if, in connection with such sale, a security interest is taken or retained by the seller to secure all or a part of the purchase price of the motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable the purchaser to acquire rights in the motor vehicle, the name and the business or residence address of the secured party or his assignee shall be noted on the certificate of ownership. Nothing in this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes.

NJSA 39:10-11(A) states:

The purchaser of a motor vehicle in this State, other than a dealer licensed pursuant to the provisions of R.S.39:10-19, shall, within 10 working days after its purchase, submit to the director evidence of the purchase. Upon presentation to the director of the certificate of origin, or certificate of ownership, or bill of sale issued prior to October 1, 1946, with proper assignment and certification of the seller, a record of the transaction shall be made and filed. A certificate of ownership shall be issued by the director and delivered to the buyer, in case of a sale not subject to a security interest, and the director shall collect a fee of $20 for the issuance and filing thereof.

There is also caselaw in New Jersey that requires the proper assignment, execution of bills of sale and recording of title prior to transfer of ownership being completed. See Progressive Group v. Luz Mirian Hurdato, et al., 393 N.J. Super 517 (2007); Hartford Accident & Indemnity Co. v. Travelers Insurance Co., 167 N.J. Super 335 (1979); Velkers v. Glens Falls Insurance Co., et al., 93 N.J. Super 501 (1967); Eggerding v. Bicknell, 20 N.J. 106 (1955).

Our attorneys have a focus in litigating personal and commercial auto lawsuits involving rear-end impacts to chain collision events.  They are well-versed in the law and how to develop the facts of your case through investigation and discovery in order to establish ownership on the part of those parties liable for your accident.  Contact us to schedule a consultation.