Effective, Experienced, Exceptional.

Flooring Loans

Subscribe to Consumer Finance

Thank you for your desire to subscribe to Severson & Werson’s Consumer Finance Weblog. In order to subscribe, you must provide a valid name and e-mail address. This too will be retained on our server. When you push the “subscribe button”, we will send an electronic mail to the address that you provided asking you to confirm your subscription to our Weblog. By pushing the “subscribe button”, you represent and warrant that you are over the age of 18 years old, are the owner/authorized user of that e-mail address, and are entitled to receive e-mails at that address. Our weblog will retain your name and e-mail address on its server, or the server of its web host. However, we won’t share any of this information with anyone except the Firm’s employees and contractors, except under certain extraordinary circumstances described on our Privacy Policy and (About The Consumer Finance Blog/About the Appellate Tracker Weblog) Page. NOTICE AND AGREEMENT REGARDING E-MAILS AND CALLS/TEXT MESSAGES TO LAND-LINE AND WIRELESS TELEPHONES: By providing your contact information and confirming your subscription in response to the initial e-mail that we send you, you agree to receive e-mail messages from Severson & Werson from time-to-time and understand and agree that such messages are or may be sent by means of automated dialing technology. If you have your email forwarded to other electronic media, including text messages and cellular telephone by way of VoIP, internet, social media, or otherwise, you agree to receive my messages in that way. This may result in charges to you. Your agreement and consent also extend to any other agents, affiliates, or entities to whom our communications are forwarded. You agree that you will notify Severson & Werson in writing if you revoke this agreement and that your revocation will not be effective until you notify Severson & Werson in writing. You understand and agree that you will afford Severson & Werson a reasonable time to unsubscribe you from the website, that the ability to do so depends on Severson & Werson’s press of business and access to the weblog, and that you may still receive one or more emails or communications from weblog until we are able to unsubscribe you.

In In re Ferreira, No. 18-5264, 2019 Bankr. LEXIS 3342, at *6-8 (Bankr. N.D. Ga. Oct. 24, 2019), the Bankruptcy Court found no fiduciary duty between a floorplan lender and dealer. A number of courts have considered whether contracts in a floor planning relationship create such a technical trust. As the bankruptcy court explained in VW Credit, Inc. v. Salim… Read More

In Swl v. Nextgear Capital, No. 18A-CC-2955, 2019 Ind. App. LEXIS 387, at *14-19 (Ct. App. Aug. 28, 2019), the Court of Appeals held that the trial court should not have granted summary judgment to a floorplan lender against the dealer on the dealer's promissory estoppel claim. Dealer also asserts that the trial court erred when it entered summary judgment… Read More

In Wester Americredit Fin. Servs. v. Adams Motor Co., No. C18-4067-LTS, 2019 U.S. Dist. LEXIS 141889, at *2-5 (N.D. Iowa Aug. 20, 2019), the District Court threw out counter-claims filed against a floorplan lender.  The facts were not atypical: GM Financial acted as AMC's floorplan lender and entered into a term loan and revolving line of credit with AMC on… Read More

In Auto. Fin. Corp. v. Nunez (In re Nunez), Nos. 17-33845-hdh7, 18-03004, 2019 Bankr. LEXIS 824 (Bankr. N.D. Tex. Mar. 15, 2019), Judge Hale denied a Floorplan lender’s non-dischargeability claim. The Plaintiff alleges that the Defendant committed fraud in securing advances from the Plaintiff and by transferring the Secured Vehicles without being paid in full. The Plaintiff also alleges the… Read More

In Red Barn Motors, Inc. v. Nextgear Capital, Inc., No. 18-1409, 2019 U.S. App. LEXIS 4303 (7th Cir. Feb. 13, 2019), the Court of Appeals for the Seventh Circuit remanded for further proceedings the District Court’s de-certification of a class action against a Floorplan Lender.  We previously reported on the District Court’s opinion here:  https://www.severson.com/consumer-finance/district-court-ind-says-floorplan-lender-hoisted-car-dealer-class-representative-petard-floorpan-agreement-ambiguous-individualized-proof-intent-intrinsic-evidence-req/ The facts were as follows: The… Read More

In U.S. Bank Equipment Finance v. J.W. Jones Company, LLC., et. al.,  2018 WL 5312905, at *5–6 (S.D.Ind., 2018), in granting summary judgment to a floorplan lender on its contract/replevin claim, the District Court also found that the borrower owed a fiduciary duty to the floorplan lender due to the trust-relationship. The language of the Agreement meets the high bar… Read More

In In re Nissan Litigation, 17-CV-729 (KBF) 2018 WL 2113228 (S.D.N.Y.  May 8, 2018), Judge Forrest granted summary judgment to an auto finance company in a floorplan dispute.  Judge Forrest first described “sales out of trust”. In order to keep inventory in their dealerships, car dealers typically enter into Floor Plan Financing agreements with the captive finance arms of the manufacturers—in this… Read More

In Red Barn Motors, Inc. v. NextGear Capital, Inc. f/k/a Dealer Services Corporation, 2018 WL 397231, at *1 (S.D.Ind., 2018), the District Court granted a Motion for Reconsideration Granting Class Certification, and decided to decertify a class action filed on behalf of all used car dealers entering into floorplan agreements with a floorplan lender. The facts were as follows: The Plaintiffs… Read More

In Eddie Yaklin Ford Lincoln Mercury Nissan, Inc. v. American Road Services Company, Universal Underwritings Insurance Company, NO. 2:15-CV-399, 2017 WL 3387186, at *1–3 (S.D.Tex. Aug. 4, 2017), Judge Tagle denied a Dealer's Insurer's MSJ for an identity theft loss presented by the Dealer.  The facts forming the basis of the loss were as follows: Yaklin Ford is an authorized… Read More

In In re: Edwards, No. 14–50717, 2017 WL 3037451 (W.D. Ky, July 17, 2017), Judge Stout found that a marine retailer's conversion of funds out-of-trust from the sale of collateral rendered his debt to his floorpan lender non-dischargeable. Taking these points together, this Court has no trouble finding that Mr. Edwards both read the documents he signed, and was aware of CFSB's… Read More

1 2