[Moe]

I am new to this forum, please accept my apologizes in advance for any mistakes in my netiquette/posting.

My question is how to best handle a personal situation. Sixteen months ago my friend wanted to purchase a vehicle, but had no job history/or credit. I (stupidly) agreed to purchase car w/my excellent credit rating and let her make the pmts. She did make them, a few late ... but she dropped her car insurance and the lender applied approx. 12months of insurance compounded to the loan. The loan is now very upside down.

The lender found out about our situation, and we tried to refinance car in my friend's name, but she still does not have good enough credit and was denied. The lender suggested that I co-sign w/her and she could have loan. Three appts for signing papers came and went with her being a no-show. Three days ago (while I am out of town for work) my "friend" turned the car into the Credit Union. My questions:
1. Is there anyway I can recoup (approx. $8k) difference bwtn loan and what car will sell for?
2. Should I pay off car (my parents would if best to do) and resell myself or have Credit Union do the selling?
3. All payments were made by my friend's Mother (who wrote the checks) ... is there anyway to include her in Breach of Contract? (she is one who told friend to "dump" car and let me deal with it)
4. ?????

Thank you very much in advance for any guidance you can offer ... I do believe I have learned a very valuable lesson here!
Moe

[aaron]

1. Is there anyway I can recoup (approx. $8k) difference bwtn loan and what car will sell for?

You could attempt to sue your "friend" for that amount.

2. Should I pay off car (my parents would if best to do) and resell myself or have Credit Union do the selling?

Usually you can get a better price by selling the car yourself, rather than having the credit union do it, so you certainly should consider exploring that option.

3. All payments were made by my friend's Mother (who wrote the checks) ... is there anyway to include her in Breach of Contract? (she is one who told friend to "dump" car and let me deal with it)

Depending upon the laws of your state, perhaps 'tortious interference with a contractual relationship'?

[Moe]

Thank you for taking the time to reply.

re: 1. what type of Lawyer/Court fees could I expect? would this be a jury trial? or ??

re: 3. I live in Ventura County, CA ... are verbal contracts legal here? I have many, many ways to prove such verbal contract existed.

Thank you again.

[aaron]

re: 1. what type of Lawyer/Court fees could I expect? would this be a jury trial? or ??

If you brought your action in small claims court, you could proceed without a lawyer but you would be limited in your recovery to $5,000.00. If you proceed in a standard trial court, you would have to consult with lawyers to determine what they might charge to assist you; you can represent yourself, but that can be tricky. In civil cases, the parties request juries (and if they so request, pay a "jury fee") - so if you don't request one and the defendant doesn't request one, there would typically be a bench trial (a trial by the judge).

re: 3. I live in Ventura County, CA ... are verbal contracts legal here? I have many, many ways to prove such verbal contract existed.

Oral contracts are enforceable, provided you can prove that they exist, subject to each state's "Statute of Frauds". California generally imposes a two year limitations period on actions to enforce oral contracts, which for a loan would ordinarily run from the date of the last payment made.

[Moe]

I recently saw something about "limited civil case" for damages greater than $5,000 and under $25,000. Would this be the correct way to approach my situation? Is this something I could handle alone or would I need an attorney to represent me in a courtroom?
Thank you.

[aaron]

I recently saw something about "limited civil case" for damages greater than $5,000 and under $25,000.

Here's the Kern County page on limited civil actions.

Would this be the correct way to approach my situation? Is this something I could handle alone or would I need an attorney to represent me in a courtroom?[/quote]
It is an option to consider. Whether or not you would want to use an attorney depends upon the cost of representation, the complexity of the case, your ability to quickly absorb law and courtrooom procedure, and your comfort level.

[mason35]

Is it possible that a leinholder can reposses my car because of insurance issues.That is not stated on the contract.