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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. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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