A TEXAS APPEALS court has ruled against a Boss Hoss dealer in a title clearance dispute with Wells Fargo Bank.
The dispute began after Boss Hoss Cycles of Houston sold a cycle to a customer at the 2006 Sturgis rally. The customer, Ronald Elic, agreed to 84 monthly payments. Wells Fargo approved the sale, and dealership owner David Chessir sent Wells Fargo a letter saying he would provide all title documents in exchange for the $35,300 price of the vehicle, according to a copy of the decision posted at Leagle.
Under the dealer’s financing agreement with Wells Fargo, the dealer could be required to buy back the loan if the title was not “perfected” – legally put into Elic’s name with the lender’s lein – within 90 days.
But Elic never applied for a title for the vehicle. By the following May he defaulted on the contract, and Wells Fargo wanted its money back. The bank declined to have him repossess the bike on its behalf, and instead went after Chessir to buy back the $32, 705.54 outstanding on the loan. Then the bank said it was getting out of the motorcycle financing business.
At trial, Chessir argued that the Manufacturer’s Statement of Origin provided to the bank when the deal was struck was sufficient to fulfill the dealer’s obligations.
A jury disagreed, and so did the Texas’ 14th District Court of Appeals. Unless there is a further appeal, the dealer is on the hook for the outstanding loan balance and $15,000 in Wells Fargo’s attorney fees.
The case is Boss Hoss Cycles of Houston LLC v. Wells Fargo Bank, N.A., 14-08-00648-CV.
Posted by Holly Wagner