Thrash v. Credit Acceptance Corp.

Kenneth and Kathryn Thrash (plaintiffs) obtained a loan from Credit Acceptance Corporation (CAC) (defendant) to purchase a car. The Thrashes’ agreement with CAC required the Thrashes to make monthly loan payments. The loan was secured by the car, and the loan agreement provided that if the Thrashes defaulted on the loan payments, CAC could immediately repossess the car by legal process or self-help as long as CAC did not breach the peace or unlawfully enter the Thrashes’ premises. The Thrashes made two monthly payments but then stopped paying on the loan. Although CAC gave the Thrashes more time to pay, CAC employed Gulf Coast Recovery Services & Storage, Inc. (GCRS) (defendant) to repossess the car before that extended repayment period had expired. CAC instructed GCRS not to contact the Thrashes before the repossession, and GCRS complied. One night around midnight, GCRS went to the Thrashes’ home, found the car under a carport, and dragged the car to the street. GCRS poured liquid dish detergent on the Thrashes’ driveway to make it easier to drag the car. A CAC representative later stated that once CAC learned that GCRS was using the detergent, CAC could have instructed GCRS to stop. While GCRS was removing the car, Kathryn called Kenneth at work and said that the car was being stolen. When Kenneth came home, he slipped and fell on the detergent, seriously injuring himself. The Thrashes sued CAC and GCRS in Alabama state court, alleging that CAC and GCRS had wrongfully repossessed the car and trespassed on the Thrashes’ property. The trial court granted summary judgment for CAC, finding that (1) CAC was not vicariously liable for any wrongdoing by GCRS because GCRS was an independent contractor, not an agent, and (2) GCRS had not committed a breach of peace in repossessing the vehicle. The Thrashes subsequently settled with GCRS and appealed the grant of summary judgment in CAC’s favor.