ILNews

COA upholds judgment in auction of towed car

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals affirmed summary judgment in favor of a father and daughter whose car was towed and later sold at auction, finding the towing company didn’t comply with the 15-day waiting period after placing notice in the newspaper before selling the car.

In Rick Gillespie, Dawn Gillespie and Rick's Towing and Maintenance, LLC v. Frank B. Niles and Kathryn Niles, No. 49A05-1102-CT-70, Rick and Dawn Gillespie’s company, Rick’s Towing and Maintenance, towed Kathryn Niles’ vehicle in December 2008. The car was still titled and registered to Kathryn’s father, Frank. Rick’s Towing sent notices to Frank, who lived at the same address as Kathryn, saying the Chevy Tahoe would be sold at public auction on Jan. 21, 2009, if it wasn’t claimed. On Jan. 6, the towing company contacted the Indianapolis Star about publishing notice of the sale, which ran Jan. 8. The vehicle was sold, and five days later the Nileses attempted to claim the car.

The Nileses sued for conversion, saying the Gillespies didn’t comply with the law regarding notice before selling a car at auction. The Gillespies filed a motion for summary judgment; the Nileses filed a cross-motion for summary judgment. The trial court ruled in favor of the Nileses and granted a judgment against the Gillespies instead of Rick’s Towing. The Nileses won $22,000 plus interest.

The Court of Appeals affirmed judgment for the Nileses, finding the defendants didn’t comply with the statutory requirements under Indiana Code 9-22-5-15 to enforce their lien by selling the Tahoe at auction. The statute dictates that the car couldn’t be sold before 15 days “after the date the advertisement required by subsection (d) has been placed or after notice required by subsection (e) has been sent, whichever is later.”

The Gillespies argued that they complied with the statute because they placed the ad with the newspaper 15 days before the sale by contacting the Indianapolis Star and it wasn’t their fault it didn’t run until two days later.

“The only reasonable interpretation of ‘placed’ in this context is that the advertisement had to be published at least fifteen days before the sale,” wrote Judge Michael Barnes. “The Defendants failed to wait the required fifteen days before selling the vehicle at the auction. As a result, the Defendants failed to meet the statutory requirements to auction the vehicle.”

The trial court did err by granting summary judgment against the Gillespies personally rather than against Rick’s Towing only. The Gillespies’ actions were performed as employees of the company and don’t demonstrate a basis for piercing the corporate veil, the appellate court held.


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Sociologist of religion Peter Berger once said that the US is a “nation of Indians ruled by Swedes.” He meant an irreligious elite ruling a religious people, as that Sweden is the world’s least religious country and India the most religious. The idea is that American social elites tend to be much less religious than just about everyone else in the country. If this is true, it helps explain the controversy raking Indiana over Hollywood, San Fran, NYC, academia and downtown Indy hot coals. Nevermind logic, nevermind it is just the 1993 fed bill did, forget the Founders, abandon of historic dedication to religious liberty. The Swedes rule. You cannot argue with elitists. They have the power, they will use the power, sit down and shut up or feel the power. I know firsthand, having been dealt blows from the elite's high and mighty hands often as a mere religious plebe.

  2. I need helping gaining custody of my 5 and 1 year old from my alcoholic girlfriend. This should be an easy case for any lawyer to win... I've just never had the courage to take her that far. She has a record of public intox and other things. She has no job and no where to live othe than with me. But after 5 years of trying to help her with her bad habit, she has put our kids in danger by driving after drinking with them... She got detained yesterday and the police chief released my kids to me from the police station. I live paycheck to paycheck and Im under alot of stress dealing with this situation. Can anyone please help?

  3. The more a state tries to force people to associate, who don't like each other and simply want to lead separate lives, the more that state invalidates itself....... This conflict has shown clearly that the advocates of "tolerance" are themselves intolerant, the advocates of "diversity" intend to inflict themselves on an unwilling majority by force if necessary, until that people complies and relents and allows itself to be made homogenous with the politically correct preferences of the diversity-lobbies. Let's clearly understand, this is force versus force and democracy has nothing to do with this. Democracy is a false god in the first place, even if it is a valid ideal for politics, but it is becoming ever more just an empty slogan that just suckers a bunch of cattle into paying their taxes and volunteering for stupid wars.

  4. I would like to discuss a commercial litigation case. If you handle such cases, respond for more details.

  5. Great analysis, Elizabeth. Thank you for demonstrating that abortion leads, in logic and acceptance of practice, directly to infanticide. Women of the world unite, you have only your offspring to lose!

ADVERTISEMENT