[CLBS] Automobile Title/Possession Question

Mon Jun 22 16:13:33 MDT 2020

If that's the case, then our judges may have been applying the "name on
title" principle a little too harshly.

Ryan Farnsworth

On Mon, Jun 22, 2020, 4:03 PM Louis V. Spiker <lvs at magicvalleylaw.com>
wrote:

> Jeremy:
>
> Judge Mitchell in north Idaho addressed a similar set of facts in 2004 and
> applied 28-2-403(2).
>
>
> https://www.kcgov.us/DocumentCenter/View/2654/August-23-2004-CV-2003-7599-Bell-v-Godbout-PDF
>
> Louis V. Spiker
> ________________________________
> WORST, STOVER, GADD & SPIKER, P.L.L.C.
> OF COUNSEL
> WILSON & MCCOLL
>
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> P.O. Box 1544 | Boise, ID 83703
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> lvs at magicvalleylaw.com
> www.magicvalleylaw.com
>
>
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> -----Original Message-----
> From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Jared M. Le Fevre
> Sent: Monday, June 22, 2020 11:27 AM
> To: Jeremy Vaughn <Jeremy at idaho-law.com>; clbs at admws.idaho.gov
> Subject: Re: [CLBS] Automobile Title/Possession Question
>
> Your clients will run into problems with entrusting under 28-2-403(2) and
> buyer in the ordinary course of business under 28-9-320. While I have not
> researched this scenario under Idaho law, in other UCC jurisdictions, the
> buyers of the cars have prevailed over your clients so long as the buyer
> lacked knowledge of the title issues and wasn't in on the scheme. Perhaps
> Idaho vehicle title statutes would have something helpful in them that the
> UCC does not have. However, the vehicle buyers may be subject to liens
> created by your clients, which could give you something to work with.
>
>  Jared M. Le Fevre
> Crowley Fleck PLLP
>  490 North 31st Street, Suite 500
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> -----Original Message-----
> From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Jeremy Vaughn
> Sent: Monday, June 22, 2020 11:06 AM
> To: clbs at admws.idaho.gov
> Subject: [CLBS] Automobile Title/Possession Question
>
> This message was received from an external email account. Please use
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>
>
> Greetings all,
>
> Recently our firm has picked up a number of cases all in the same vein.  A
> local consignment auto dealership took the clients' vehicles on consignment
> and sold them to third parties.  The problem is that the dealership then
> never paid the sellers their funds, and in some cases never paid off the
> liens against the vehicles.  It's been weeks/months since the sales.  In
> all of our cases, the titles are still in the name of our clients, not the
> third party purchasers, and still show the liens of record, where
> applicable.
>
> The dealership is now in bankruptcy, and looking at the
> schedules/pleadings, any claim against them is likely a lost cause.  The
> question from my clients is can they retake possession of the vehicles,
> assuming they can find the vehicles?  They are the owners of record per the
> titles.
>
> I appreciate any help or guidance anyone can offer.
>
> Jeremy
>
> Jeremy C. Vaughn
> Stephan, Kvanvig, Stone & Trainor
> P.O. Box 83
> Twin Falls, ID 83303-0083
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