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Couple should be allowed truck title

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The Indiana Court of Appeals affirmed summary judgment in favor of a couple in a vehicle title dispute, ruling the pair should be allowed to take the title free of an auto auction's security interest in the truck.

At issue in Indianapolis Car Exchange, Inc. v. Randall and Christina Alderson,  No. 80A02-0902-CV-116, is whether the trial court erred in granting summary judgment for the Aldersons and ordering the BMV to release a lien held by Indianapolis Car Exchange.

The truck in question was purchased by Mike Thurman at ICE through his car dealership. ICE had a financing agreement with Thurman despite the dealership's cash flow problems and ICE's insurance company refusing to cover transactions between ICE and the dealership.

Immediately following the purchase, Thurman sold the truck to Bonnie Chrisman of Lightly Used Trucks at another auction house; Chrisman arranged to purchase the truck for Randall Alderson. Thurman never paid ICE for the truck nor informed them of the sale. After learning of the sale, ICE asked the BMV to place a lien in its favor on the truck's title. The auto auction refused to release the lien and the Aldersons refused to return the truck.

In the Aldersons' complaint against ICE, both parties filed for summary judgment; the trial court granted it in favor of the Aldersons.

The Court of Appeals examined Indiana Code Sections 26-1-9.1-320(a), 26-1-1-201(9), and 26-1-2-403(1), which deal with buyers, sellers, and security interests. For a buyer to take free of a security interest created by the seller, the buyer may have knowledge that a security interest exists but may not have knowledge that the sale violates the rights of another person, according to the statutes.

ICE argues there are genuine issues of material fact in the case, including whether Chrisman and the Aldersons knew the sale violated ICE's rights. It pointed to the fact Chrisman told the Aldersons that Thurman "was running on Danny Hockett money," who is the owner of ICE, and that the sale took place at another auction after the first sale. But this evidence doesn't establish a genuine issue of material fact for trial, wrote Judge Michael Barnes.

"In the absence of designated evidence showing that Chrisman or the Aldersons had knowledge that the sale of the truck violated ICE's rights, Chrisman and the Aldersons were buyers in the ordinary course of business," he wrote.

Also, ICE did object to the sale, but only because Thurman defaulted, not because he sold the truck.

"ICE entrusted the truck to Thurman by delivering the truck to him and acquiescing in his retention of possession of the truck with the expectation that Thurman would sell the truck to someone else. This is the very circumstance in which Indiana Code Section 26-1-2-403(2) was intended to apply," Judge Barnes wrote.

Whether Indiana Code Sections 26-1-9.1-320(a) or 26-1-2-403(2) are read separately or in conjunction with one another, the Aldersons should be allowed to take title free of ICE's security interest in the truck, the appellate court ruled.

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  1. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  2. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  3. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  4. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

  5. Can I get this form on line,if not where can I obtain one. I am eligible.

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