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Contracts Keyed to Knapp
BMW Financial Services NA, LLC v. Deloach
Citation:California Court of Appeal 2017 WL 1832250 (2017)
Deloach leased a 2013 BMW from a BMW dealer. At the time, the vehicle’s odometer displayed 4,293 miles. Deloach failed to make the payments and the vehicle was repossessed. At the time of repossession the odometer displayed 94 miles. The car was sold at auction for $25,000, a lower value due to the odometer tampering. BMW Financial then commenced action against Deloach, and Deloach failed to respond to the suit by the deadline of April 20, 2015. On August 13, 2015, the trial court entered default judgment in favor of BMW Financial. However, at the same time Deloach’s account had been sent to a collection agency, Firstsource Advantage, LLC. The balance on the account was $24,442. Firstsource contacted Deloach in August 2015. Deloach’s father, David Deloach, contacted Firstsource and offered $14,000 payment immediately for a complete release. On August 17, 2015, Firstsource confirmed the settlement in writing and later receipt of the $14,000. On September 15, 2015, BMW Financial’s counsel contacted Deloach asserting the settlement agreement was a mistake and “rescinded” the settlement by returning the $14,000. Deloach then filed a motion to compel acknowledgement of the satisfaction of judgment.
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