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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. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  2. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

  3. I am one of Steele's victims and was taken for $6,000. I want my money back due to him doing nothing for me. I filed for divorce after a 16 year marriage and lost everything. My kids, my home, cars, money, pension. Every attorney I have talked to is not willing to help me. What can I do? I was told i can file a civil suit but you have to have all of Steelers info that I don't have. Of someone can please help me or tell me what info I need would be great.

  4. It would appear that news breaking on Drudge from the Hoosier state (link below) ties back to this Hoosier story from the beginning of the recent police disrespect period .... MCBA president Cassandra Bentley McNair issued the statement on behalf of the association Dec. 1. The association said it was “saddened and disappointed” by the decision not to indict Ferguson police officer Darren Wilson for shooting Michael Brown. “The MCBA does not believe this was a just outcome to this process, and is disheartened that the system we as lawyers are intended to uphold failed the African-American community in such a way,” the association stated. “This situation is not just about the death of Michael Brown, but the thousands of other African-Americans who are disproportionately targeted and killed by police officers.” http://www.thestarpress.com/story/news/local/2016/07/18/hate-cops-sign-prompts-controversy/87242664/

  5. What form or who do I talk to about a d felony which I hear is classified as a 6 now? Who do I talk to. About to get my degree and I need this to go away it's been over 7 years if that helps.

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