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2005 News Releases
Locke Reynolds Receives Defense Verdict for General Motors Acceptance Corporation
INDIANAPOLIS, November 2005 – Jennifer L. VanLandingham of Locke Reynolds LLP received a defense verdict for General Motors Acceptance Corporation (GMAC) when a Boone County, Indiana Court granted a motion for directed verdict in favor of GMAC at the close of all the evidence.
Plaintiffs sought revocation of a vehicle retail installment sale contract held by GMAC based on various breach of warranty claims made against the vehicle manufacturer, also a defendant in the case. The contract was executed by the plaintiffs and the dealership from which the plaintiffs purchased a new truck. GMAC took an assignment of the dealership's interest in the contract. The Federal Trade Commission Holder Rule, which abrogates holder in due course status, makes an assignee of a consumer credit contract subject to all claims a consumer could make against the seller of goods obtained pursuant to the contract. According to plaintiffs, they could seek revocation based on their breach of warranty claims because the meaning of "seller" should be broadly interpreted to include the vehicle manufacturer.
Plaintiffs failed to present any evidence at trial by which the jury could conclude that the vehicle manufactuer was a "seller" within the meaning of the Federal Trade Commission Holder Rule. On its motion for directed verdict, GMAC successfully argued that the manufacturer of a vehicle could not be considered a "seller" when the manufacturer was not a party to the sales contract and did not engage in direct sales to consumers.
Ms. VanLandingham is an associate practicing in the Firm's Business Services and Financial Institutions Groups. She concentrates her practice in transactional services and business and commercial litigation. Ms. VanLandingham's experience includes commercial and real estate loan documentation, documenting purchase and sale of asset transactions, trust and estate matters, taxation matters, drafting contracts, entity formation and general business and commercial litigation.
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Contact:
Locke Reynolds LLP
Indianapolis, Indiana
317-237-3800
Fort Wayne, Indiana
260-497-6000
www.locke.com
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