Kansas City Office’s Derek MacKay and Phillip Raine secured an arbitration win on behalf of a client, a California based auto-financing company, after a one-day arbitration where the claimant demanded more than $1,000,000 on a $14,000 car sale.
The claimant purchased a vehicle from an auto dealer and claimed she did not receive the title at the time of sale. After the vehicle was re-possessed, the auto financing company continued to pursue the remaining balance of the debt and the claimant responded by claiming she should not owe any balance on the contract, should be entitled to refund of the amount she paid, and that she was also entitled to attorney’s fees and punitive damages due to not receiving the title at the time of sale. The purchaser also attempted to create a class action and argued that the financing company had waived arbitration, but the 16th Circuit Court in Jackson County disagreed and compelled arbitration. Ultimately, the arbitrator rejected the car purchaser’s $1,000,000+ demand at arbitration, finding that she had not met her burden of showing she did not receive the title at the time of sale and went so far as to find she still owed the remaining balance of the loan to the financing company.
Please join us in congratulating Derek and Phil on this win.