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Complaint for unpaid car loan filed outside of statute of limitations

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Because a company seeking to recover unpaid installments on a car loan filed its complaint outside of the four-year statute of limitations, the Indiana Court of Appeals affirmed the small claims judgment in favor of the car buyer.

Chris Romine bought a 1996 Pontiac Firebird from Royal Motors Sept. 30, 2005, and financed the transaction. His biweekly payments began Oct. 15, 2005, but due to a severe back injury, he became unemployed and couldn’t keep up with his car payments.  

Heritage Acceptance Corp. as assignee of Royal Motors sued Romine in small claims court April 17, 2013, seeking the jurisdictional limit of $6,000 plus court costs. The trial court ruled in favor of Romine, citing the four-year statute of limitations applicable to “transactions in goods.” Romine also got to keep the car.

Heritage argued in Heritage Acceptance Corporation v. Chris L. Romine, 71A03-1307-SC-283, that the six-year statue of limitations for actions upon promissory notes, bills of exchanges or other written contracts for the payment of money applied. The company conceded that the contract, captioned “Retail Installment Contract and Security Agreement” resulted in “a sale of goods.”

“Indeed, the financing aspect of the contract is wholly dependent upon the sale of the car, because without the sale, the financing serves no purpose. Thus, although the transaction has aspects of a contract for payment of money, it is not exclusively a security transaction. Under Indiana Code section 26-1-2-102, the contract is a transaction for goods,” Senior Judge John Sharpnack wrote.

The judges also rejected Heritage’s claim that it still timely filed its complaint based on the acceleration clause, in which Heritage demanded that Romine pay everything owed in one lump sum.

“Here, Heritage waited until early April 2013 to exercise its right to demand full payment under the optional acceleration clause. Romine had tendered his last payment almost six years earlier. Furthermore, Romine’s schedule of seventy-eight biweekly payments would have ended in September 2008. Heritage did not demand full payment until well over four years after that deadline,” Sharpnack wrote. “We conclude … that waiting after these events have occurred to exercise an optional acceleration clause is unreasonable. Thus, Heritage’s long-delayed attempt to exercise the acceleration clause did not prevent the four-year statute of limitations from taking effect, and its complaint is barred.”

 

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  1. The is an unsigned editorial masquerading as a news story. Almost everyone quoted was biased in favor of letting all illegal immigrants remain in the U.S. (Ignoring that Obama deported 3.5 million in 8 years). For some reason Obama enforcing part of the immigration laws was O.K. but Trump enforcing additional parts is terrible. I have listed to press conferences and explanations of the Homeland Security memos and I gather from them that less than 1 million will be targeted for deportation, the "dreamers" will be left alone and illegals arriving in the last two years -- especially those arriving very recently -- will be subject to deportation but after the criminals. This will not substantially affect the GDP negatively, especially as it will take place over a number of years. I personally think this is a rational approach to the illegal immigration problem. It may cause Congress to finally pass new immigration laws rationalizing the whole immigration situation.

  2. Mr. Straw, I hope you prevail in the fight. Please show us fellow American's that there is a way to fight the corrupted justice system and make them an example that you and others will not be treated unfairly. I hope you the best and good luck....

  3. @ President Snow - Nah, why try to fix something that ain't broken??? You do make an excellent point. I am sure some Mickey or Minnie Mouse will take Ruckers seat, I wonder how his retirement planning is coming along???

  4. Can someone please explain why Judge Barnes, Judge Mathias and Chief Judge Vaidik thought it was OK to re weigh the evidence blatantly knowing that by doing so was against the rules and went ahead and voted in favor of the father? I would love to ask them WHY??? I would also like to ask the three Supreme Justices why they thought it was OK too.

  5. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

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