Legal Question in Civil Litigation in California
Car Repossession Due to Death/Straw Purchase
Before her death, my mother signed
on the doted line in the amount of
$28,000 for a new car for a woman
who promised to help her out with
chores, etc. The woman was
supposed to make the payments.
She made payments from 2005 to
2008, however she was late many,
many times. My mother died in June
2008. We found out at the funeral
about this car. I, the named
executrix in the will, notified the
lender immediately. They had the
car repossessed. They said they were
going to sell it at auction for
whatever they could get. I decided
to buy the car from the lender for
cash. They would not even talk to
the woman, as she was not on title
at all. Said my mother had broken
the law by giving her the car in the
first place. The woman had put all
kinds of money into the car (new
wheels, rims, muffler, etc.). I bought
the car, took it to another state
where I live. I now have title. She is
now threatening to sue me in small
claims court for the costs of
improvements to the car. Does she
have a leg to stand on? The lender
says she has no rights whatsoever.
Can she sue me in California Small
Claims Court when I live in Oregon?
2 Answers from Attorneys
Re: Car Repossession Due to Death/Straw Purchase
The legal issues you raise are more complex than you might realize. The friend's rights will depend upon a number of factors, including whether her agreement with your mother was written or oral, what that agreement said, what your mother's contract with the dealer said, and whether the friend was on notice about that contract's terms. Without these and other facts, it is not possible to assess the strength of the friend's claims.
If the friend wants to sue you in your individual capacity she may have to do so where you live. Depending upon the nature of her claims, though, she may be able to sue in California instead. If she wants to sue you in your capacity as executrix of your mother's estate, that claim will have to be heard wherever the estate was probated.
Good luck.
Re: Car Repossession Due to Death/Straw Purchase
You should have gotten some legal advice before taking rash action. You've probably bought yourself a lawsuit. Sure, she can sue you. Anybody can sue anybody for anything. Whether it has merit, or whether service is valid, will be up to the judge to decide. Get yourself local CA counsel if and when it happens.
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