Pontiac Solstice Forum banner

1 - 5 of 5 Posts

·
Registered
Joined
·
7,226 Posts
Discussion Starter #1

·
Premium Member
Joined
·
2,319 Posts
I guess it is crap like that which causes so many firms to fork over lots of money just to stay OUT of the "justice" system
 

·
Registered
Joined
·
6,934 Posts
Vintage Corvette belongs to the last buyer | The Indiana Lawyer

Indiana Court of Appeals finds Ebay bidder to be good faith purchaser originating from an online Mechanics Lien Plus illegal $100 lien scam. :leaving:
The normal common law principle that applies is 'Nemo dat quod non habet" or 'You can't give what you ain't got' (i.e. good title). In the case you cited it is complicated by the lien process, which if properly carried out would operate to transfer title legally to the buyer. You'd have to look at the statute in Indiana to see if a lien claimant can buy on his own lien sale - that will vary with the jurisdiction. If he can, there may be nothing wrong with the sale - he gave notice to the correct address on title.

The fact that he had the lien service send a second notice clouds the whole thing, as at that point the claimant theoretically had clear title and didn't need to do anything further under the lien statue, he could just sell it - that would probably have been a better thing for him to do.

It may well be that the original owner will have no recourse against the mechanic except for money as the car is probably legally disposed of.

Moral is, make sure that your ownership documents reflect your real address, and don't ignore a car that is in for restoration. I have seen people leave cars with contractors for literally years because they ran out of money or inclination or both, and I have seized and sold them for clients that ran shops or storage facilities. The owners that don't just pay up right away usually come out of the woodwork and moan later, and ignore the fact that they had their chance to cough up but didn't.

I know of cases where the shop owner sold not for $100 but still for a fraction of real value, usually to a buddy of his rather than to himself, and the owner had proper notice, and was unsuccessful in getting the car back. It will all turn on local laws though.
 

·
Registered
Joined
·
7,226 Posts
Discussion Starter #4 (Edited)
However, it was reported the use of the lien services was performed by using/employing IL DMV personnel/procedures illegally? Meaning if an individual within IN DMV was in collusion with MLP (by receiving an illegal kickback?) to circumvent the legal lien process shouldn't the sale be deemed (or ruled) invalid by the judge due to the sale stemming from the introduction of evidence that an illegal (or fraudulent) lien process was used/employed?

Similar to how the government can confiscate money/proceeds/personal property if it's proved or a connection is made that the money/proceeds/personal property was obtained by a defendant for engaging in illegal activities?
 

·
Registered
Joined
·
6,934 Posts
I didn't follow the link, thanks.

The UCC says that if you have voidable title you CAN pass good title to an innocent good faith buyer, in which case the result would be as in this case - the original owner has a claim for monetary damages against the other parties, but can't support a replevin order to have the vehicle returned to him.

That case is the sort of clusterf*ck that they use on law students to test their analytical abilities, and the sort no praticing lawyer wants a part of when there is only $25K at issue!
 
1 - 5 of 5 Posts
Top