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Unpaid balance bars woman from being class representative in class-action complaint

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Even though a trial court initially certified a class in a lawsuit, the Indiana Court of Appeals has ruled in a case of first impression that the lower court can change its mind.

Tequita Ramsey filed an interlocutory appeal, arguing the trial court abused its discretion in ordering the temporary decertification of a class.

Ramsey originally filed a complaint in small claims court after a car she bought from Lightning Corp., d/b/a/ First Class Car Co., developed mechanical problems the same day she drove it off the lot. She had paid $1,400 toward the purchase price of $1,791.40 and agreed to make payments on the remaining $391.40.

When Lightning refused to refund the money, Ramsey filed the complaint then amended that complaint to include a class-action claim. Specifically, she alleged that the $199 document preparation fee the dealer charged on all its sales was a violation of Indiana Code 9-23-3-6.5.

The trial court granted the class certification order but later granted Lightning’s motion to modify that order. Lightning held Ramsey was not an appropriate class representative because the $1,400 she had paid did not include the $199 document preparation fee.

On appeal, Ramsey countered that she has standing to be a class representative because Lightning was suing her for the remaining balance due under the sales agreement.

In Tequita Ramsey v. Lightning Corporation, 49A02-1209-CC-705, the appeals court affirmed the trial court’s judgment in decertifying the class. The COA stated it could find no logical reason to hold that the trial court may never revoke or rescind such an order.

As to Ramsey’s argument that she is a class representative because she is being sued for the amount that includes the document preparation fee, the appeals court was unconvinced.

“In our view, Ramsey’s argument is only speculative,” Judge John Baker wrote. “Ramsey should not be permitted to breach her contract with Lightning by failing to pay the amounts required under the purchase documents, and then when Lightning sues her for non-payment, be conferred the rights and benefits as if she had satisfied her obligations under the contract.”

 

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  1. For many years this young man was "family" being my cousin's son. Then he decided to ignore my existence and that of my daughter who was very hurt by his actions after growing up admiring, Jason. Glad he is doing well, as for his opinion, if you care so much you wouldn't ignore the feelings of those who cared so much about you for years, Jason.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

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