ILNews

Parties can't pick certain provisions to enforce

Back to TopCommentsE-mailPrint

The Indiana Court of Appeals addressed an issue of first impression today regarding whether a person could seek to enforce rights under a vehicle purchasing agreement he didn't sign but then disavow other provisions set forth in the same document.

The issue in TWH, Inc. d/b/a Tom Wood Honda v. Jennifer Binford, No. 48A02-0805-CV-441, is whether Jennifer Binford was required to arbitrate her complaint of breach of warranty and fraud against the car dealer. Binford bought a used car for her son, Aaron. She was the only one to sign the purchase agreement with Tom Wood, which included an arbitration provision. Both she and Aaron signed the retail installment contract, which didn't have an arbitration provision.

After Aaron had some problems with the car, Binford filed her complaint; Tom Wood filed a motion to compel arbitration. Aaron filed a petition for permissive joinder, which was granted. The trial court denied Tom Wood's motion to compel, finding the company failed to get Aaron's signature on the purchase agreement that would mandate arbitration of the dispute.

The Court of Appeals agreed with Tom Wood's argument that because Aaron's claims are the same or similar to those of his mother and relate to the car purchase, he is bound by the arbitration clause and can't selectively choose the rights he wants to enforce and then disregard other provisions in the same document.

Aaron didn't initially sign the purchase agreement, but he then petitioned for permissive joinder since he is the co-purchaser of the car. As such, it constitutes a judicial admission and binds him to the arbitration provision in the purchase agreement, wrote Judge Edward Najam. Binford and her son can't seek affirmative relief from the transaction and disavow the arbitration provision in the purchase agreement. Tom Wood has proven that the dispute is the type of claim the parties agreed to arbitrate, so the appellate court reversed the denial of the motion to compel arbitration and remanded with instructions for the trial court to grant Tom Wood's motion and to enter judgment accordingly.

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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

  2. As a lawyer who grew up in Fort Wayne (but went to a real law school), it is not that hard to find a mentor in the legal community without your school's assistance. One does not need to pay tens of thousands of dollars to go to an unaccredited legal diploma mill to get a mentor. Having a mentor means precisely nothing if you cannot get a job upon graduation, and considering that the legal job market is utterly terrible, these students from Indiana Tech are going to be adrift after graduation.

  3. 700,000 to 800,000 Americans are arrested for marijuana possession each year in the US. Do we need a new justice center if we decriminalize marijuana by having the City Council enact a $100 fine for marijuana possession and have the money go towards road repair?

  4. I am sorry to hear this.

  5. I tried a case in Judge Barker's court many years ago and I recall it vividly as a highlight of my career. I don't get in federal court very often but found myself back there again last Summer. We had both aged a bit but I must say she was just as I had remembered her. Authoritative, organized and yes, human ...with a good sense of humor. I also appreciated that even though we were dealing with difficult criminal cases, she treated my clients with dignity and understanding. My clients certainly respected her. Thanks for this nice article. Congratulations to Judge Barker for reaching another milestone in a remarkable career.

ADVERTISEMENT