Legal Question in Civil Litigation in California
My boyfriend took over a loan for his daughter's vehicle two years ago. She paid for the first year, then asked her father if he wanted to take it over as he seemed to like the car. He said yes, then paid her the monthly payments that she in turn paid to the finance company. He never had the vehicle or loan put into his name. There was only a verbal agreement between them until she came to him with a single piece of paper (I do not know what was exactly written) telling him to sign this contract between them...this I believe took place sometime around last March.
Beginning last August, Father was trying to get daughter to take vehicle into dealership to get loan changed over, and/or turn in vehicle to purchase more inexpensive car to help lower the payments with new loan. These conversations went on until November...but she never made herself available to accomplish this changeover.
His 17 year old son, who was still living at home at the time, was driving the vehicle under his permit (he is allowed to drive on city streets only until he gets his full license at age 18 in Jan '10) while he was attending school and looking for work.
The son had a severe outburst with his father over work, or really the lack of looking for work, and this outburst escalated to the point of having to call the Sheriff. They calmed him down. The next day the boy apologized to his father and made all sorts of promises about looking for work; the boy then called his sister, his mother, then his sister again (I have phone records). The boy told his father the next day that he was going to leave the house at 830am and submit applications for work. The following morning the boy left as promised; however, we found out at 530pm (by calling Father's daughter) that the boy was at his sister's house as she said "I have him".
At this juncture, Father no longer wanted vehicle as son and daughter had stolen his car...in his mind they had repossessed car. He told her to sell car or turn it into dealership.
As weeks have passed, Father was having a change of heart and was considering taking vehicle back and getting loan in his name; asked daughter for loan statements and she never sent them. Then he asked for login to web page where she made a new password for him. We checked the records online and found out that she had put in two months extension in August and had not made the payments for September or October, though her Father had paid her for both those months and has the canceled checks to prove it. He now no longer wants to take the vehicle as she has lied (again). Possession of vehicle has been in her possession since brother drove it over freeways (illegally) to get to her.
Now, Daughter is threatening to sue Father. Does she have a leg to stand on?
1 Answer from Attorneys
An Oral agreement is enforceable. There is also the written document that he signed, the contents of which is unknown. He may have a defense in that she breached the agreement when she took the car and used it. If she sues in small claims court then consult with the small claims court advisor. If the case is filed in superior court then he should consult with an attorney.