Simpson v. Anthony Auto Sales, Inc.

Several agencies investigated Anthony Auto Sales, Inc. (Anthony Auto) and determined that it sold numerous vehicles to consumers after altering the odometers to show substantially less mileage. Simpson and other consumers (the consumers) (plaintiffs) each purchased a vehicle with an altered odometer from Anthony Auto on credit evidenced by various documents (the consumer credit contracts). The consumer credit contracts each contained a notice provision stating that any holder of the contract is subject to all claims and defenses that the consumer could assert against the seller of the vehicle but that the consumer could not recover more than the amount paid under the contract. Anthony Auto assigned the consumer credit contracts to various lenders (the lenders), including Capital Resource Funding, Inc. (Capital). The consumers sued Anthony Auto, its owner, Charles Anthony, and the lenders (defendants) under a federal law prohibiting the making of false statements regarding a vehicle’s mileage with the intent to defraud. Anthony admitted that he defrauded the consumers as to the vehicles’ mileage. The consumers argued that they were entitled to recover from Capital amounts greater than the amounts they paid to Capital under the consumer credit contracts. The consumers also argued that Capital should be liable for their attorney’s fees and costs whether or not the amount exceeds the amount they paid under the consumer credit contracts.