Breach of Contract - Tips, What to expect?

[BruinBlue]

What is the name of your state (only U.S. law)? California

In 2012 I purchased a vehicle along with my then partner, we are both on the title and loan. The car was in my posession and I made all the payments from 2012 into mid 2013. In 2013, we separated and after discussion, came to the agreement that she would take the car into her posession, get a loan under her name only, and pay me $3,000 cash. At my request, we put it in writing and had it notarized. The written agreement stipulated the aforementioned and had a deadline of March 2014.I surrendered the car to her posession and she paid me $1,000 (of the agreed $3,000).

March 2014 came and went and she did not fulfill her end of the bargain by refinancing the loan into her name only or pay the remaining $2,000. She allowed her sister to take posession of the car and take over the payments. In the meantime, in an attempt get rid of tje joint loan/car title and be done with it, I reached out to the Defendant several times and she agreed to give the car back to me and let me try to refinance so it would just be in my name. However, she didn't show up or stopped communicating altogether.

After coming to terms that she did not intend to follow through on her end of the contract, I filed in small claims. My court hearing is coming up in the next couple of days. At this point, I rather just have the car returned to my posession, and take it upon myself to refinance the loan and remove her from it. At least it'll be in my power and avoids her dragging this out any further. I have a feeling that the car has been devalued significantly (moreso than it would have under my posession, as the sister drives long distances frequently).

1. Can anyone provide guidance, tips, words of wisdom that might help me win my case?

2. If I win, what is the Judge likely to order (for her to return the car to me or grant her time to refinance under her name only and pay the remaining $2k?)

3. If the car is returned to me, can I make a case for compensation (either by keeping the 1k she paid me, or part of it) for the possible excessive devaluation of the car during the time it was in her/her sister's posession?

Thank you in advance.

 

[justalayman]

What is the name of your state (only U.S. law)? California

In 2012 I purchased a vehicle along with my then partner, we are both on the title and loan. The car was in my posession and I made all the payments from 2012 into mid 2013. In 2013, we separated and after discussion, came to the agreement that she would take the car into her posession, get a loan under her name only, and pay me $3,000 cash. At my request, we put it in writing and had it notarized. The written agreement stipulated the aforementioned and had a deadline of March 2014.I surrendered the car to her posession and she paid me $1,000 (of the agreed $3,000).

March 2014 came and went and she did not fulfill her end of the bargain by refinancing the loan into her name only or pay the remaining $2,000. She allowed her sister to take posession of the car and take over the payments. In the meantime, in an attempt get rid of tje joint loan/car title and be done with it, I reached out to the Defendant several times and she agreed to give the car back to me and let me try to refinance so it would just be in my name. However, she didn't show up or stopped communicating altogether.

After coming to terms that she did not intend to follow through on her end of the contract, I filed in small claims. My court hearing is coming up in the next couple of days. At this point, I rather just have the car returned to my posession, and take it upon myself to refinance the loan and remove her from it. At least it'll be in my power and avoids her dragging this out any further. I have a feeling that the car has been devalued significantly (moreso than it would have under my posession, as the sister drives long distances frequently).

1. Can anyone provide guidance, tips, words of wisdom that might help me win my case?

2. If I win, what is the Judge likely to order (for her to return the car to me or grant her time to refinance under her name only and pay the remaining $2k?)

3. If the car is returned to me, can I make a case for compensation (either by keeping the 1k she paid me, or part of it) for the possible excessive devaluation of the car during the time it was in her/her sister's posession?

Thank you in advance.

is the market value of the car $6000 above the remaining debt due to the loan? (or was it at the time of the agreement?)

If you rescind the contract, you must return the money to her. Since she is an equal owner of the car, you cannot charge her, essentially, rent to use her own car. She has a right to drive it until the wheels fall off and owe you nothing. After all, it is equally her car as well.

you can sue to enforce the contract (complete the sale) but since it is equally her car, a court is not going to order she return it to you should the contract be terminated. So, in the end, you could be required to return the $1000 but she could end up keeping possession of the vehicle.

 

[FamilyGirl]

On your small claims petition, what did you ask for? Was there a specific monetary amount?

 

[quincy]

What is the name of your state (only U.S. law)? California

... After coming to terms that she did not intend to follow through on her end of the contract, I filed in small claims. My court hearing is coming up in the next couple of days. At this point, I rather just have the car returned to my posession, and take it upon myself to refinance the loan and remove her from it. At least it'll be in my power and avoids her dragging this out any further. I have a feeling that the car has been devalued significantly (moreso than it would have under my posession, as the sister drives long distances frequently).

1. Can anyone provide guidance, tips, words of wisdom that might help me win my case?

2. If I win, what is the Judge likely to order (for her to return the car to me or grant her time to refinance under her name only and pay the remaining $2k?)

3. If the car is returned to me, can I make a case for compensation (either by keeping the 1k she paid me, or part of it) for the possible excessive devaluation of the car during the time it was in her/her sister's posession?

...

Here is a link from the California Department of Consumer Affairs with information that walks you through your small claims action: http://www.dca.ca.gov/publications/small_claims/file.shtml

Good luck.

 

[BruinBlue]

Results

I thought I'd post the outcome for those who may be in similar situations...

The Judge indicated that the Court is unable to force the Defendant to refinance under her name and remove me from the title and loan. The Judge instead provided 3 options:

1. Issue a judgment against the Defendant for $2,000 (the monies owed per the written agreement)

2. For me to amend my original small claim and instead of asking for $2,000 to make me whole, to instead ask for $10,000 (the maximum amount allowed in small claims) so that the Defendant pays me $10,000 and I can turn around and use that money to pay off the loan. The problem with this is that more than $10,000 is owed on the loan

3. Issue a judgment rescinding the agreement and ordering the Defendant to return the car to me "in original condition" by a certain date.

I ended up choosing option 3 because my main conern isn't so much the money, but having the car back in my posession and take it upon myself to refinance or trade-in or whatever I choose to do, instead of leaving it in the hands of the Defendant who has dragged out the process.

I asked the Judge if local police would be able to accompany me to the Defendant's home to recover my vehicle as long as I had the judgment in hand (in the case that the Defendant failed to relinquish the car by the deadline) and although he indicated he could not provide legal advice, added that "that might be a good option for you."

Thank you everyone for your input.

 

[justalayman]

Judge screwed up. Judge had no right to order the other person relinquish the vehicle, especially since you both made payments on the vehicle for what appears to be somewhat equal periods of time.

No, the $2k would not make you whole. Making one whole means making payment to compensate for losses. You had no losses. In fact, you may have been cheating the other party by demanding payment of $3000.

On top of everything else the court should not have even heard the case if the value of the vehicle was over $10k as that is their jurisdictional limit and as such had no authority to order the car be given back to you.

Hopefully your ex wil appeal the decision and file a counterclaim for the $1000 you owe them. Even using the judges own statements In accepting the contract was enforceable a rescission of the contract wouid mean you would have to pay them $1000 to make them whole.