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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. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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