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BMW Financial Services NA, LLC v. Deloach

California Court of Appeal
2017 WL 1832250 (2017)


 

Facts

Frank Deloach (defendant) leased a BMW from BMW Financial Services NA, LLC (plaintiff). Deloach did not make his lease payments, and BMW repossessed the car. At that point, BMW determined that the odometer had been tampered with. BMW sued Deloach for breach of the lease and for tampering with the odometer. BMW sold the car at auction for $25,000. Because BMW did not properly flag Deloach’s account as being part of ongoing litigation, the account was sent to a collection agency with an outstanding balance of approximately $24,000. Deloach’s father negotiated a settlement with the collection agency for $14,000 in exchange for a complete release of claims. The settlement was signed on August 17, 2015. On August 13, 2015, BMW won a default judgment against Deloach in the amount of $114,677. Most of this amount was treble damages for the odometer tampering. BMW did not learn of the settlement until after the default judgment. BMW sought to rescind the settlement on account of its mistake in sending Deloach’s account to a collection agency when litigation was pending. Deloach filed a motion to compel acknowledgment of satisfaction of judgment. The trial court granted the motion. BMW appealed.

Rule of Law

Issue

Holding and Reasoning (Bedsworth, J.)

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