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Dealership did not abide by contract terms, COA rules

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Citing the terms spelled out in the contract, the Indiana Court of Appeals has ruled that a car dealer that entrusted a buyer with mailing a title to the lender will have to pay the balance of the auto loan.

Cruisin’ Auto Sales contracted with Springleaf Financial Services of Indiana Inc. to finance a car purchased by Cruisin’s customer, Jennifer George. Springleaf specified in the contract that Cruisin’ was to list the financial company as the first and only lienholder on the title, then mail the document to Springleaf.

The car dealer listed Springleaf as the lienholder but gave the title to George under the assumption she would mail it to the lender after registering the vehicle with the Indiana Bureau of Motor Vehicles.

On appeal, Cruisin’ argued it fulfilled its contractual duty by endorsing the check and naming Springleaf on the title as the lien holder. George failed to perfect Springleaf’s lien because she did not register the title with the BMV.

Moreover, Cruisin’ maintained Springleaf should have included language in the contract if it wanted the car dealer to register the title with the BMV.

The Court of Appeals disagreed and affirmed the trial court’s judgment in Cruisin’, Inc., d/b/a Cruisin’ Auto Sales v. Springleaf Financial Services of Indiana, Inc., f/k/a American General Financial Services, 39A01-1309-CC-423.

It held that when Cruisin’ endorsed and negotiated the check, it accepted the terms of the simple contract which included the auto dealer must mail the title to the “payor.”

“Here, Springleaf is the payor and both George and Cruisin’ are payees on the Check,” Judge Elaine Brown wrote for the court. “Thus Cruisin’ agreed when it endorsed and negotiated the Check that it would mail the title to Srpingleaf, and, pursuant to the Letter accompanying the Check, list Springleaf as the lienholder on the title. Cruisin’ did not mail the title to Springleaf – it handed the title to George, who did not file the title with the BMV and subsequently stopped paying on the Loan Agreement. This conduct by Cruisin’ was a breach of its contract under the Endorsement.”

The Court of Appeals did remand for the trial court to correct a scrivener’s error and enter a judgment for $2,659.02 or explain why $2,779.02 is the right amount. Also, the court remanded for the trial court to enter the judgment damage award against both Cruisin’ and George jointly and severally.


 
 

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  1. For many years this young man was "family" being my cousin's son. Then he decided to ignore my existence and that of my daughter who was very hurt by his actions after growing up admiring, Jason. Glad he is doing well, as for his opinion, if you care so much you wouldn't ignore the feelings of those who cared so much about you for years, Jason.

  2. Good riddance to this dangerous activist judge

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  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

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