AutoXchange.com v. Dreyer and Reinbold, Inc.
Indiana Court of Appeals
816 N.E.2d 40 (2004)
As the only corporate officer empowered to negotiate sales on behalf of AutoXchange.com, Inc. (AutoXchange) (plaintiff), Scott Ellington, AutoXchange’s minority shareholder, handled the sale of three cars to Dreyer & Reinbold, Inc. (defendant). Ellington instructed Dreyer & Reinbold to deliver the purchase money directly to Automotive Finance Corporation (AFC), AutoXchange’s creditor. In fact, this instruction was contrary to AutoXchange’s sole authorized procedure, by which Dreyer & Reinbold should have delivered the purchase money to AutoXchange. AutoXchange sued Dreyer & Reinbold for failing to act in good faith in following Ellington’s unauthorized instructions. The trial court denied AutoXchange’s motion to strike the court’s partial summary judgment for Dreyer & Reinbold. AutoXchange appealed to the Indiana Court of Appeals.
Rule of Law
Holding and Reasoning (Riley, J.)
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