Legal Question in Consumer Law in California

My case is as follows:

1) I purchased a car from a small dealership "A" Paid for the car in full with a cashiers check.

I got a bill of sale at the time of purchase. The dealer said that I should receive pink slip within the next month

2) Dealership A goes bankrupt. I find out that the dealership doesn't have title to the car. The title belong to big dealership B which let dealership A sell the car. Furthermore, A's dealership license had expired when I purchased the car from them.

3) Dealership A's bond is completely exhausted

4) Dealership B refuses to transfer title to the car to me even though I submitted all support for purchase.

Issue:

I cannot get title to the car even though I have paid for it. I would like to sue dealer B and have them transfer title to me on the basis that they are negligent in the fact that their car was being sold by another dealership with expired license.

I contacted a lawyer and the attorney said that I have a case and will most likely win. However because the dealership is only "negligent" I cannot recover attorney fees.

The car costs $13K. The attorney is asking for $2K just to file the lawsuit and not do any actual work.

It seems unfair that I have a case that I'm going to win, but the cost of winning will equal or exceed the value of the car and the other side is not responsible for the attorney fees. Any advice?

I'm willing to pay $1-2K, but not more than that for litigation.


Asked on 5/18/10, 9:39 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

I disagree with the attorney that told you that you have a case and you aren't being to terribly realistic about the cost of hiring an attorney. The bottom line is that you cannot recover legal fees against Dealership B and that's just the way the law is. If you still think that you have a case against Dealership B, you can always file a small claims lawsuit if you are willing to limit your recovery to the small claims limit of $7500.

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Answered on 5/23/10, 9:52 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

And I respectfully disagree with attorney Starrett. I would file an adversary complaint for fraud with the bankruptcy court (you would need to find a reasonably hungry bankruptcy attorney who would charge a reasonable fee). You could claim punitive damages, attorney fees, and go after any individuals who defrauded you.

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Answered on 5/23/10, 10:27 pm


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