united states district court for the … answer to complaint and defenses now come defendants, by...
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UNITED STATES OF AMERICA UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION
MARK ALLEN TODD,
Plaintiff, Case No. 1:16-cv-340 v. Hon. Robert Holmes Bell MIDWEST MOTORS SALES & SERVICE INC., DONALD J. MILLER, and, ERIC R. RITTENHOUSE,
Defendants. /
DEFENDANTS' ANSWER TO COMPLAINT AND DEFENSES NOW COME Defendants, by and through their attorneys, Varnum LLP, and answer
Plaintiff's Complaint as follows:
I. Introduction
1. Defendant Midwest Motors Sales & Service, Inc. ("Midwest Motors" or
"Midwest"), (www.midwestmotorsonline.com) sells motor vehicles to consumers in credit
transactions, using retail installment sales contracts.
ANSWER: Admitted that Midwest Motors Sales & Service, Inc. ("Midwest") sells motor
vehicles to consumers, pursuant to retail installment sales contracts. Any remaining
allegations or inferences are denied as untrue. In further answer, Defendants state that
Midwest does not extend credit to consumers and that financing for credit transactions is
provided by third parties. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
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and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
2. A typical credit transaction is initiated when a Midwest Motors employee helps
the consumer complete a simple credit application. Midwest then obtains the consumer's credit
report. Midwest Motors then attempts via the internet, fax or other means to obtain the tentative
approval of an investment company that specializes in purchasing motor vehicle retail
installment sales contracts to purchase the contract from Midwest Motors and "fund" the deal.
Funding usually takes place pursuant to pre-existing agreements between Midwest and various
investment companies. These agreements state the terms under which each investment company
will purchase contracts from Midwest Motors. The preliminary arrangement of the investment
company to purchase a particular contract from Midwest Motors is merely conditional and will
specify additional terms ("stipulations") which must be met before the investment company will
actually purchase the contract from Midwest Motors. Typical stipulations include a subsequent
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telephone interview of the consumer by an employee of the investment company, and
verification of the consumer's residency, employment and income.
ANSWER: Defendants admit that in a "typical" credit transaction, the consumer
completes a credit application; Midwest obtains, with the consumer's express consent, the
consumer's credit report; that Midwest attempts to obtain on behalf of the consumer
tentative approval of the consumer's application for financing from a third party; that any
initial approval obtained from the third party for financing is conditional upon further
review of the consumer and any co-signer's credit-worthiness; that any approval of the
consumer's application for financing is conditional upon said further review and
investigation by the third party financing source, including but not limited to verification
of the consumer's and any co-signer's residency, employment, income, and other factors.
In further answer, Midwest states that it is unclear what the Plaintiff means by the phrase
"investment companies" and that Midwest assists in obtaining customers third-party
financing from various lenders including banks and credit unions. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
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lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied
as untrue.
3. Once Midwest Motors has received an investment company's tentative approval
to purchase the contract, Midwest tells the consumer that he/she has been "approved for
financing". If the consumer agrees to purchase a vehicle, a Midwest Motors employee prepares
the retail installment sales contract and other form-documents related to the transaction. The
consumer signs the documents, thereby becomes the vehicle's owner, and takes delivery of the
vehicle.
ANSWER: Defendants admit that the consumer receives tentative approval from the
loan provider for the financing of the loan, Midwest informs the consumer that he or she
has been tentatively approved for financing, and then prepares the necessary contract and
documents necessary for the purchase of the vehicle. In further answer, Defendants state
that the consumer's purchase of the vehicle in an credit transaction is necessarily
contingent upon the consumer's receiving full and final financing approval from the loan
provider and takes possession of the vehicle pending receipt of said final approval. In
further answer, Midwest states that it is unclear what the Plaintiff means by the phrase
"investment companies" and that Midwest assists in obtaining customers third-party
financing from various lenders including banks and credit unions. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
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attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied
as untrue.
4. Problems occur when Midwest Motors later finds itself unable to satisfy all of the
stipulations required by the investment company and the investment company refuses to
purchase the contract from Midwest. Although Midwest's contract with the consumer contains
no lawful provision conditioning the sale of the vehicle and Midwest's extension of credit upon
Midwest's subsequent sale of the contract, Midwest sometimes will refuse to hold the retail
installment sales contract and honor Midwest's contract with the consumer, which results in an
illegal "spot delivery" or "yo-yo" transaction. Midwest may then coerce the consumer into
providing additional paperwork, may require the consumer to provide a co-borrower, or may
require the consumer to sign additional contracts on different terms. Alternatively or eventually,
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Midwest will breach the contract and demand that the consumer return the vehicle to Midwest,
sometimes falsely accusing the consumer of stealing the vehicle or threatening to file a false
police report and improperly involve law enforcement. Ultimately, Midwest will unlawfully
repossess or convert the consumer's vehicle.
ANSWER: Denied that Midwest engages in any illegal tranactions. Defendants admit
that consumers' loan applications will at times be denied by the loan provider after
previously receiving tentative approval of the loan, and if so, that Midwest will request the
consumer to return the vehicle to Midwest. In further answer, Midwest states that it is
unclear what the Plaintiff means by the phrase "investment companies" and that Midwest
assists in obtaining customers third-party financing from various lenders including banks
and credit unions. In further answer, the transaction in question as described by Plaintiff is
false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
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trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
All other allegations or inferences are denied as untrue.
5. In a widely distribute [sic] May 22, 1989 Opinion Letter, the Michigan
Department of Commerce, Financial Institutions Bureau stated that in the Bureau's opinion, it is
unlawful for a motor vehicle installment seller to condition a sale on the seller's subsequent
success in selling the retail installment contract to a third party purchaser of the contract. The
State of Michigan on its website continues to make the letter available to consumers at:
http://www.michigan.gov/documents/cis_ofis_spotdel_24239_7.pdf.
ANSWER: No factual allegation is made and therefore no response is required. To the
extent a response is required, the allegation is neither admitted nor denied and Plaintiff is
left to his proofs.
6. The State of Michigan also warns consumers about spot delivery, stating: "[T]he
dealer has the choice whether to assign the contract. The dealer has sole control over the effort it
will make to assign a contract. . . . A motor vehicle installment sale contract conditioned upon
the contract's assignment to a finance company violates the [Motor Vehicle Sales Finance Act].
Such a provision is not enforceable. . . . [T]he contract is not void. It is legally enforceable.
You are still responsible for making the payments as required by the contract. If the dealer
requests that you return to sign a new contract, you are not required to do so." The State of
Michigan makes this consumer protection warning at:
http://www.michigan.gov/documents/cis_ofis_spotdeli_23752_7.pdf.
ANSWER: No factual allegation is made and therefore no response is required. To the
extent a response is required, the allegation is neither admitted nor denied and Plaintiff is
left to his proofs.
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7. Similarly, the Michigan Secretary of State Dealer Manual, § 3-3.4. states that "a
finance contract is between the purchaser and the dealer. Typically, the dealer assigns the Motor
Vehicle Installment Sales Contract to a finance company and then places a lien on the vehicle's
title to secure payment. If the finance company subsequently rejects the loan contract after
interest in the vehicle transfers to the purchaser, it becomes the dealer's responsibility to offer
financing to the purchaser under the same terms (e.g., interest rate, payment schedule, etc.) as the
original finance contract. This may require that the purchaser make the payments directly to the
dealer" The manual expressly warns: "It is a violation of state law to attempt 'repossession' of a
vehicle after delivery or to change the terms of the finance contract if a finance company refuses
the contract after a spot delivery." The Michigan Secretary of State Dealer Manual is available
at: http://www.michigan.gov/documents/sos/Dealer_Manual_Chapter_3_186402_7.pdf.
ANSWER: No factual allegation is made and therefore no response is required. To the
extent a response is required, the allegation is neither admitted nor denied and Plaintiff is
left to his proofs.
8. Plaintiff Mark Allen Todd is a victim of Midwest's unlawful spot delivery/yo-yo
practices. Many state and federal laws may be violated when a car dealer engages in this most
unfair and deceptive practice. Midwest Motors has violated the federal Truth in Lending Act, 15
U.S.C. § 1638, et seq., the federal Equal Credit Opportunity Act, 15 U.S.C. § 1691, et seq., the
federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., the federal Motor Vehicle
Information and Costs Savings Act, 49 U.S.C., § 32701, et seq., and its regulations, 49 C.F.R. §
580.1, et seq. Midwest violated Michigan's Motor Vehicle Installment Sales Contract Act,
M.C.L. § 566.301, et seq., and Michigan's Conversion Statute, M.C.L. § 600.2919a, as well as
breaching its contract with Mr. Todd, and harming him in other ways.
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ANSWER: All allegations are denied as untrue. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
II. Jurisdiction and Venue
9. This Court has jurisdiction under 28 U.S.C. § 1331 and has supplemental
jurisdiction regarding plaintiff's state law claims under 28 U.S.C. § 1367. Declaratory relief is
available pursuant to 28 U.S.C. §§ 2201 and 2202.
ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
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10. This Court has jurisdiction under 15 U.S.C. § 1640(e) of plaintiff's claims under
the Truth in Lending Act.
ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
11. This Court has jurisdiction under 15 U.S.C. § 1691e(f) of plaintiff's claims under
the Equal Credit Opportunity Act, including under 15 U.S.C. § 1691e(c) of plaintiff's claims for
equitable and declaratory relief under that Act.
ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
12. This Court has jurisdiction under 15 U.S.C. § 1681p of plaintiff's claims under the
Fair Credit Reporting Act.
ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
13. This Court has jurisdiction under 49 U.S.C. § 32710 of plaintiff's claims under the
Motor Vehicle Information and Costs Savings Act.
ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
14. Venue is appropriate in this district for the reason that the pertinent events took
place here.
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ANSWER: The allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs.
III. Parties
15. Plaintiff Mark Allen Todd is a natural person, residing in the City of Allegan in
Allegan County, Michigan.
ANSWER: Admitted, upon information and belief.
16. Defendant Midwest Motors is a Michigan domestic profit corporation (ID #
06726T) licensed by the Secretary of State for the State of Michigan to sell motor vehicles at
retail (License # B205732) and licensed by the Department of Insurance and Financial Services
of the State of Michigan as a motor vehicle dealer originating installment sales contracts to
customers purchasing motor vehicles in credit transactions. As such, Defendant Midwest Motors
is licensed by the State of Michigan as an installment seller. (License # IS-0020232). By statute,
M.C.L. § 445.1539, and as a condition of licensing. Midwest Motors can be served through the
Michigan Department of State, Compliance Division, 3rd Floor - Treasury Building, 430 West
Allegan Street, Lansing, Ml 48918. Midwest's resident agent for service of process is Donald
Miller (one in the same with defendant Donald J. Miller), 1208 M 89, Plainwell, Michigan
49080. The registered office of Midwest Motors is 1208 M 89, Plainwell, Michigan 49080.
ANSWER: Admitted.
17. At all times relevant hereto. Midwest engaged in the sale of motor vehicles to
customers, regularly extended credit to customers who purchased motor vehicles, and regularly
executed retail installment sales contracts subject to a finance charge or payable in four or more
installments.
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ANSWER: Defendants admit that Midwest engages in the sale of motor vehicles to
customers, pursuant to retail installment sales contracts. Defendants deny as untrue the
allegation that Midwest extends credit to its customers, and any additional allegations or
inferences. In further answer, the transaction in question as described by Plaintiff is false
and misleading in that Midwest attempted to sell the automobile at issue and obtain third-
party financing for the Plaintiff through several lenders. Unfortunately due to Plaintiff's
credit rating he was denied credit with several lenders, which necessitated the need for a
co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's
application with the addition of Betty Todd as a cosigner but after further review Kalsee
denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
18. Defendant Donald J. Miller (hereafter "Miller) is an individual residing in the City
of Wyoming, Kent County, Michigan and was, at all times relevant hereto, the owner of
defendant Midwest Motors.
ANSWER: Admitted that Donald J. Miller is an owner of Midwest Motors Sales &
Service, Inc.
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19. Defendant Eric R. Rittenhouse (hereafter "Rittenhouse") is an individual residing
in the City of Plainwell, Allegan County, Michigan and at all times relevant hereto, the salesman
in the transaction underlying this case.
ANSWER: Denied as untrue. In further answer, Defendants state that Eric M.
Rittenhouse is the General Manager of Midwest.
IV. Facts
20. On February 27, 2016, plaintiff Mark Todd went to Midwest Motors for the
purpose of purchasing a motor vehicle.
ANSWER: Admitted.
21. On that date, Mr. Todd took with him a motor vehicle, a 2002 Jeep Liberty, VIN
1J4GL58K52W2138533, that he then owned and upon which he had an outstanding loan to a
third party, intending to trade that vehicle in for the purchase of a motor vehicle from Midwest.
ANSWER: Admitted.
22. Defendant Rittenhouse showed Mr. Todd a vehicle on the Midwest Motors sales
lot that Mr. Todd was interested in purchasing, a 2013 Kia Optima, VIN
5XXGM4A70DG114686.
ANSWER: Denied as untrue.
23. Defendant Rittenhouse and Midwest requested that Mr. Todd provide information
for a credit application, which information Mr. Todd provided.
ANSWER: Admitted that Plaintiff provided information for a credit application. In
further answer, the transaction in question as described by Plaintiff is false and misleading
in that Midwest attempted to sell the automobile at issue and obtain third-party financing
for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he
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was denied credit with several lenders, which necessitated the need for a co-signer, Betty
Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with
the addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff
and Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up. Any
additional allegations or inferences are denied as untrue.
24. Defendant Midwest Motors processed the information provided by Mr. Todd and
defendant Rittenhouse informed Mr. Todd that he had been approved for credit.
ANSWER: Admitted that Midwest submitted Plaintiff's credit application to Kalsee
Credit Union, on behalf of Plaintiff. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
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Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any additional allegations or inferences are denied as
untrue.
25. Defendant Midwest Motors, by defendant Rittenhouse, and Mr. Todd signed a
retail installment sales contract for Mr. Todd's purchase of the 2013 Kia Optima.
ANSWER: Neither admitted nor denied, and Defendants leave Plaintiff to his strictest
proofs. In further answer, the transaction in question as described by Plaintiff is false and
misleading in that Midwest attempted to sell the automobile at issue and obtain third-party
financing for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit
rating he was denied credit with several lenders, which necessitated the need for a co-
signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's
application with the addition of Betty Todd as a cosigner but after further review Kalsee
denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
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be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
26. The retail installment sales contract specified the purchase price of the 2013 Kia
Optima in the amount of Thirteen Thousand ($13,000.00) Dollars.
ANSWER: Denied as untrue. In further answer, Defendants state that the total cash
price for the vehicle was $10,974.90. With a trade-in with a loan balance and a service
contract, the total amount that would have been financed was $19,192.90, had Kalsee
Credit Union approved the loan.
27. The retail installment sales contract provided for a down-payment by Mr. Todd of
One Thousand ($1000.00) Dollars, which Mr. Todd made to defendant Midwest Motors. (True
and accurate copes of the Transaction Details printouts are attached hereto, made a part hereof,
and labeled Exhibit "A".)
ANSWER: Admitted. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
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purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
28. The retail installment sales contract provided for Mr. Todd's making monthly
payments, commencing on or about April 3, 2016, in the approximate amount of Three Hundred
Seventy-five ($375.00) Dollars to Midwest Motors.
ANSWER: Denied as untrue. In further answer, Defendants state that had Kalsee
Credit Union approved the loan to Plaintiff, his monthly payments would have been
$373.93 per month. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
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29. Defendant Rittenhouse and Midwest Motors prepared for Mr. Todd's signature
and Mr. Todd signed Michigan Secretary of State (Form RD-108) Application for Michigan Title
and Registration - Statement of Vehicle Sale to transfer title to the 2013 Kia Optima to Mr. Todd
pursuant to the retail installment sales contract signed by the parties.
ANSWER: Admitted.
30. Title and ownership to the 2013 Kia Optima passed to Mr. Todd at the moment
the Application for Michigan Title - Statement of Vehicle Sale (Form RD-108) was signed by
Mr. Todd on February 27, 2016, without regard to whether the document was ever mailed by
defendant Midwest, or delivered by defendant Midwest to the Michigan Secretary of State.
Perry v. Golling Chrysler Plymouth Jeep, Inc., 477 Mich. 62, 65-67 (2007).
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
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purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
31. Pursuant to the execution of the retail Installment sales contract, the payment of
the down-payment, the execution of Form RD-108 - Application for Title, and defendant
Midwest's, by way of defendant Rittenhouse's assurances to Mr. Todd of, "your car" and "your
vehicle" in reference to the 2013 Kia Optima, as the vehicle's owner, Mr. Todd was prepared to,
and at all relevant times willing to make the payments on his car to Midwest Motors.
ANSWER: The allegation is neither admitted nor denied, as Defendants lack knowledge
or information as to what Plaintiff "was prepared" to do. Any additional or inferences are
denied as untrue. In further answer, the transaction in question as described by Plaintiff is
false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
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be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
32. Defendant Rittenhouse removed the license plate from the 2002 Jeep Liberty and
affixed the same license plate Mr. Todd's 2013 Kia Optima. (A true and accurate copy of a
photograph of the license plate formerly from the 2002 Jeep Liberty, as affixed to the 2013 Kia
Optima, is attached hereto, made a part hereof and labeled Exhibit "B".)
ANSWER: Denied as untrue.
33. Defendant Midwest Motors and Mr. Todd negotiated as part of the foregoing
transaction that Mr. Todd would transfer ownership of the 2002 Jeep Liberty to Midwest, who
would, as a condition of assuming ownership, satisfy the debt owing on the Liberty by paying off
the lender, CZFC, Inc., 1370 E M89, Otsego, Michigan, in the approximate amount of Five
Thousand ($5,000.00) Dollars.
ANSWER: Admitted. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
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purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
34. At the behest of defendant Rittenhouse, Mr. Todd signed all of the documents
presented him to accomplish the transfer of ownership to defendant Midwest of the 2002 Jeep
Liberty and permit Midwest to satisfy the remaining balance owing on the car according to their
agreement.
ANSWER: This allegation states a legal conclusion to which no response is required. In
further answer, Defendants admit that Plaintiff executed certain documents which would
have transferred ownership of said vehicle to Midwest, had Kalsee Credit Union approved
the loan to Plaintiff. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
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be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
35. Mr. Todd left Midwest Motors and took his 2013 Kia Optima home, but was
given no paperwork from Midwest Motors or any person acting on their behalf, except the VIN
of the 2013 Kia Optima written on a yellow post-it note from defendant Rittenhouse that Mr.
Todd used to call his insurance agent when he purchased automobile insurance on that car. (A
true and accurate copy of the Declaration provided by Mr. Todd's insurance company reflecting
his insurance purchase [loss payee is KALSEE C.U. - See, paragraph 2, supra] is attached hereto,
made a part hereof and labeled Exhibit "C").
ANSWER: Defendant's admit that Plaintiff left Midwest on the day in question with the
2013 Kia Optima, in anticipation and contingent upon obtaining final approval a loan from
Kalsee Credit Union. Any allegations relating to Plaintiff's insurance are neither admitted
nor denied, as Defendants lack knowledge or information sufficient to form a belief as to
the truth of said allegation. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
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lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
36. On or about March 5, 2016, a person who identified himself as representing the
Finance Department of defendant Midwest Motors appeared at the residence of Mr. Todd and
demanded as part of the foregoing purchase of the 2013 Kia Optima that Mr. Todd's mother,
Betty Jean Todd, sign the foregoing referenced retail installment sales contract, which demand
she obeyed. Again, as previously, no documents were furnished Mr. Todd or his mother after her
execution as a co-signer on the retail installment sales contract.
ANSWER: Admitted that Betty Todd signed the retail installment sales contract as a co-
buyer. In further answer, Defendants state that Ms. Todd executed the retail installment
sales contract on or about February 27, 2016. The remaining allegations are neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
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lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
37. On or about March 13, 2016, Mr. Todd was notified by defendant Rittenhouse at
Midwest Motors that Mr. Todd had to bring the 2013 Kia Optima that he purchased on
March 27, 2016, back to Midwest Motors for the reason that his "credit had been denied" and the
financing of Mr. Todd's purchase of the 2013 Kia Optima had "fallen through" for the reason that
a third-party finance company to whom Midwest Motors had attempted to sell the retail
installment contract did not make loans in the county in which Mr. Todd resided and that Mr.
Todd "lived in the wrong county."
ANSWER: Defendants admit that Kalsee Credit Union denied Plaintiff's application for
the financing of the subject vehicle. Any remaining allegations or inferences are neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
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was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
38. On March 14, 2016, Mr. Todd received a call from defendant Rittenhouse
inquiring about the return of Mr. Todd's car to Midwest Motors. Mr. Todd informed defendant
Rittenhouse that, "Well, you know, I really like the car and I think I'm going to keep it and we're
going to abide by the original contract and I'll just bring you in the three hundred and seventy-
five dollars at the beginning of the month."
ANSWER: Defendants admit that as the result of Kalsee Credit Union denying the loan
to Plaintiff, Midwest requested that Plaintiff return the subject vehicle to Midwest. Any
remaining allegations or inferences are neither admitted nor denied and Plaintiff is left to
his proofs. In further answer, the transaction in question as described by Plaintiff is false
and misleading in that Midwest attempted to sell the automobile at issue and obtain third-
party financing for the Plaintiff through several lenders. Unfortunately due to Plaintiff's
credit rating he was denied credit with several lenders, which necessitated the need for a
co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's
application with the addition of Betty Todd as a cosigner but after further review Kalsee
denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
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acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
39. During that telephone call, defendant Rittenhouse indicated to Mr. Todd,
Defendant Rittenhouse: I can call the police station and report my vehicle as stolen.... Well actually, I've got the owner of the store right here of the store and he'd like to talk to you about it.
ANSWER: Neither admitted nor denied, as Defendants lack knowledge or information
sufficient to form a belief as to the truth of the allegation.
40. Whereupon, defendant Rittenhouse put defendant Miller on the telephone call to
Mr. Todd:
Defendant Miller: Mark.
Mr. Todd: Yeah.
Defendant Miller: Where's my car at?
Mr. Todd: We have a, we had an agreement and I'm going to hold you guys to it.
. . .
Mr. Todd: We signed a contract and you gotta uphold that end of the contract.
Defendant Miller: I don't think you understand. You need to talk to an attorney.
. . .
Defendant Miller: You don't have a licensed vehicle.
Defendant Miller: You will never get the title to that car . . . I haven't processed the title to that car . . . I have the title sitting right here. If you'd like me to press charges against
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you, I will right now . . . Listen to me, Todd' (sic), I do not mess around with thousands of dollars. Mr. Todd: Let me call my attorney.
Defendant Miller: You don't have one and I will prosecute you. So, I will call the police right now.
Defendant Miller: Is that what you'd like me to do?
Mr. Todd: No, I would not like you to have me arrested.
Defendant Miller: Well, that's what's going to happen. You can't just steal someone's car.
Defendant Miller: Can't you just go buy a different car somewhere else?
Defendant Miller: You don't have the financing and you don't have cash, so unless you have cash, that is called a breach of contract and I will prosecute you.
Defendant Miller: I don't pay your *expletive deleted*-ing bills . . .
Defendant Miller: You don't have any *expletive deleted*-ing cash because if you don't, you don't have a car. Do you understand that?
ANSWER: Neither admitted nor denied, as Defendants lack knowledge or information
sufficient to form a belief as to the truth of the allegation.
41. Approximately five minutes after the conclusion of the foregoing telephone
call, defendant Miller again telephoned Mr. Todd:
Defendant Miller: Mr. Todd (sic) did you get it figured out yet?
Mr. Todd: I, uh, contacted my attorney. He should be calling, calling . . .
Defendant Miller: Good, I want you to know this, too. I just realized you had a loan on that car you traded in. That's never gonna get paid off. So just so you know, you're going to get a repo (sic) on that as well. And your license plate hasn't been transferred. Nothing's been transferred. You can go . . . you can go get stopped by a cop right now and that car does not belong to you.
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Defendant Miller: Not only are you putting yourself in (sic) risk, but also [Mr. Todd's mother] Betty, as well, because you're both on the loan. So it's not just you, it's her as well. . . .
Defendant Miller: I just want to remind you of that. This is Betty, too. Betty's also going to get prosecuted. Defendant Miller: You and Betty both are going to get prosecuted for this. This isn't my first time. There's a lot of people out there. They're called credit criminals. Defendant Miller: You couldn't get the loan.
. . .
Defendant Miller: I've already contacted them. So . . . I mean, this isn't good. (laughing) Unless you move, they know where you live. Guh! (laughing) They have all your information. It's not like you can hold a car over my head, (laughing) Ga-huh! . . .
Defendant Miller: I have a lot more money to play with attorneys than you do.
ANSWER: Neither admitted nor denied, as Defendants lack knowledge or information
sufficient to form a belief as to the truth of the allegation.
42. On March 15, 2016, by telephone conversation between Mr. Todd and defendant
Rittenhouse discussed, once again, the reason Midwest Motors gave for wanting back the car it
had sold Mr. Todd. From that conversation:
Mr. Todd: I know you had problems with the financing, and, uh, from what I understand from what you guys told me, it was because I didn't live in a county that they serviced, uh, I'm assuming that, that's correct, right? Defendant Rittenhouse: Right.
ANSWER: Neither admitted nor denied, as Defendants lack knowledge or information
sufficient to form a belief as to the truth of the allegation.
43. Throughout the course of its dealing with Mr. Todd, defendants Midwest Motors,
Rittenhouse and Miller, and each of them, misrepresented to Mr. Todd that the retail installment
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sales contract contained a term or terms conditioning Mr. Todd's purchase of the 2013 Kia
Optima upon the assignment of that contract to, or its purchase by, a third party.
ANSWER: Denied as untrue. In further answer, Defendants state that Plaintiff's
purchase of the subject vehicle was conditioned upon obtaining final approval for a loan
from Kalsee Credit Union, and that Kalsee Credit Union denied Plaintiff's loan
application. Defendants deny as untrue any alleged "misrepresentations" to Plaintiff. In
further answer, the transaction in question as described by Plaintiff is false and misleading
in that Midwest attempted to sell the automobile at issue and obtain third-party financing
for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he
was denied credit with several lenders, which necessitated the need for a co-signer, Betty
Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with
the addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff
and Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
44. The foregoing misrepresentation was material to the purchase by Mr. Todd of the
2013 Kia Optima.
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ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
45. Defendants Midwest Motors, Rittenhouse and Miller misrepresented to Mr. Todd
that the reason that defendant Midwest Motors was unsuccessful in selling the retail installment
sales contract with Mr. Todd to a third-party investor or investors was that Mr. Todd did not live
in a county in which such third-party investor or investors made loans.
ANSWER: Denied as untrue. In further answer, Defendants state that Midwest
informed Plaintiff that his loan application had been denied by Kalsee Credit Union. In
further answer, the transaction in question as described by Plaintiff is false and misleading
in that Midwest attempted to sell the automobile at issue and obtain third-party financing
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for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he
was denied credit with several lenders, which necessitated the need for a co-signer, Betty
Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with
the addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff
and Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
46. The foregoing misrepresentation was material to the credit transaction between
Mr. Todd and defendant Midwest Motors.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
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32
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
47. Defendant Midwest Motors has repeatedly stated that it would not honor the retail
installment sales contract with Mr. Todd.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
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48. Defendants Midwest Motors, Rittenhouse and Miller refused to process Mr.
Todd's paperwork with the Michigan Secretary of State.
ANSWER: Defendants admit Midwest did not further process Plaintiff's "paperwork"
upon learning that Kalsee Credit Union had denied Plaintiff's loan application. In further
answer, the transaction in question as described by Plaintiff is false and misleading in that
Midwest attempted to sell the automobile at issue and obtain third-party financing for the
Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he was
denied credit with several lenders, which necessitated the need for a co-signer, Betty Todd.
Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with the
addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff and
Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
49. On March 17, 2016, defendant Miller followed through on his threat to contact
the police and falsely report as stolen the 2013 Kia Optima that had been lawfully purchased
from defendant Midwest Motors by Mr. Todd.
ANSWER: Defendants admit that Midwest contacted the police in an attempt to recover
the subject vehicle, which Plaintiff had refused to return to Midwest after his loan
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application had been denied. In further answer, the transaction in question as described
by Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
50. Mr. Todd was contacted that same date by the Michigan State Police - District 5,
Wayland Post No. 52, and questioned regarding the allegations made by defendants Midwest
Motors, Miller and Rittenhouse. Although the contact was upsetting to Mr. Todd and his
mother, the Michigan State Police declined to take any further action on the allegations of
defendants Midwest Motors, Miller and Rittenhouse.
ANSWER: Neither admitted nor denied for the reason that Defendants lack knowledge
or information sufficient to form a belief as to the truth of the allegation. In further
answer, the transaction in question as described by Plaintiff is false and misleading in that
Midwest attempted to sell the automobile at issue and obtain third-party financing for the
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Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he was
denied credit with several lenders, which necessitated the need for a co-signer, Betty Todd.
Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with the
addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff and
Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
51. During the late afternoon hours of Sunday, March 20, 2016, defendants
Rittenhouse and Miller followed through on the threat on behalf of defendant Midwest Motors to
repossess ("repo") the 2013 Kia Optima by taking and removing it from the residential parking
lot in front of Mr. Todd's and Betty Jean Todd's apartment in the City of Allegan, where they
reside.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle on or about March 20, 2016, in response to Plaintiff's refusal to return
the vehicle to Midwest after his loan application had been denied. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
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with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied as
untrue.
52. At that time, Mr. Todd was entitled to exclusive possession of the 2013 Kia
Optima when defendants Rittenhouse, Miller, and Midwest Motors and/or their agents
unlawfully converted the Kia Optima to defendants' Midwest Motors', Rittenhouse's and Miller's
own use.
ANSWER: Denied as untrue.
53. The defendants and/or their agents took the 2013 Kia Optima in plain view of Mr.
Todd's neighbors, causing Mr. Todd to suffer humiliation and embarrassment.
ANSWER: Defendants admit that their agent lawfully and peaceably repossessed the
subject vehicle after Plaintiff's loan application was denied. Defendants neither admit nor
deny the remaining allegations for the reason that Defendants lack knowledge or
information sufficient to form a belief as to the truth thereof. In further answer, the
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transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
54. In taking from Mr. Todd the 2013 Kia Optima automobile, the defendants and/or
their agents deprived Mr. Todd of the use that automobile.
ANSWER: Defendants admit that their agent lawfully and peaceably repossessed the
subject vehicle after Plaintiff's loan application was denied. Defendants neither admit nor
deny the remaining allegations for the reason that Defendants lack knowledge or
information sufficient to form a belief as to the truth thereof. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
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with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
55. The defendants and/or their agents took Mr. Todd's 2013 Kia Optima automobile
even though Mr. Todd was not in default under the terms of the retail installment sales contract.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle in response to Plaintiff's refusal to return the vehicle to Midwest after
his loan application was denied. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
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Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied as
untrue.
56. The defendants and/or their agents took Mr. Todd's 2013 Kia Optima automobile
without Mr. Todd's consent and against his express wishes.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle in response to Plaintiff's refusal to return the vehicle to Midwest after
his loan application was denied. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
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or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied as
untrue.
57. The defendants and/or their agents took the 2013 Kia Optima even though Mr.
Todd had communicated to the defendants that Mr. Todd intended to keep that automobile.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle after Plaintiff's loan application was denied. Defendants lack
knowledge or information sufficient to form a belief as to the truth of the allegation
regarding Plaintiff's intent. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
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trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
Any remaining allegations or inferences are denied as untrue.
58. The defendants and/or their agents took the 2013 Kia Optima even though Mr.
Todd had communicated to the defendants that he intended to abide by and enforce his contract
with defendant Midwest Motors and keep the 2013 Kia Optima.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle after Plaintiff's loan application was denied. Defendants lack
knowledge or information sufficient to form a belief as to the truth of the allegation
regarding Plaintiff's intent. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
Any remaining allegations or inferences are denied as untrue.
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59. The defendants and/or their agents took the 2013 Kia Optima from Mr. Todd even
though Mr. Todd had communicated to defendant Midwest Motors that he intended to make his
monthly payments as agreed in the retail installment sales contract.
ANSWER: Defendants admit that Midwest's agent lawfully and peaceably repossessed
the subject vehicle after Plaintiff's loan application was denied. Defendants lack knowledge
or information sufficient to form a belief as to the truth of the allegation regarding
Plaintiff's intent. In further answer, the transaction in question as described by Plaintiff is
false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
Any remaining allegations or inferences are denied as untrue.
60. That the 2013 Kia Optima was converted to the defendants' own use is reflected
in the screenshot of the inventory of Midwest Motors and the motor vehicles it is offering for
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sale as of Friday, April 1, 2016., a copy of which is attached hereto, made a part hereof and
labeled Exhibit "D".
ANSWER: Defendants admit that Midwest is offering the subject vehicle for sale. It is
denied that the vehicle was "converted" by Defendants. In further answer, the transaction
in question as described by Plaintiff is false and misleading in that Midwest attempted to
sell the automobile at issue and obtain third-party financing for the Plaintiff through
several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with
several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee
Credit Union initially approved the Plaintiff's application with the addition of Betty Todd
as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied as
untrue.
61. Defendants Midwest Motors, Rittenhouse and Miller directly benefitted and
continue to benefit from the conversion of the Kia Optima to their own use as they display and
offer for sale the 2013 Kia Optima on the sales lot of defendant Midwest Motors, a corporation
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owned by defendant Miller and for whom defendant Rittenhouse is employed and sells motor
vehicles.
ANSWER: The allegation that Defendants "converted" the subject vehicle is denied as
untrue. The allegation that Defendant Miller is an owner of Midwest is admitted. It is
admitted that Defendant Rittenhouse is employed by Midwest as the General Manager. In
further answer, the transaction in question as described by Plaintiff is false and misleading
in that Midwest attempted to sell the automobile at issue and obtain third-party financing
for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit rating he
was denied credit with several lenders, which necessitated the need for a co-signer, Betty
Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's application with
the addition of Betty Todd as a cosigner but after further review Kalsee denied Plaintiff
and Betty Todd's credit request because Betty Todd had a past auto repossession history.
Midwest sought to obtain the Plaintiff financing from other third-party lenders, but due to
credit worthiness issues, it was not able to obtain additional acceptable financing for the
Plaintiff from a third-party lender. Since Midwest is not the lender and just the
automobile seller, it does not approve or deny loans for prospective purchasers. Because
financing was denied, the sale of the automobile in question could not be finalized and
therefore Midwest demanded return of the automobile in question and the trade-in
automobile provided by Plaintiff was made available to the Plaintiff for pick-up. Any
remaining allegations or inferences are denied as untrue.
62. When defendants Midwest Motors, Rittenhouse and Miller converted the 2013
Kia Optima it had a fair market value of Thirteen Thousand ($13,000) Dollars.
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ANSWER: Defendants deny the allegation that they "converted" the subject vehicle.
The allegation regarding the fair market value of the vehicle is neither admitted nor denied
and Plaintiff is left to his proofs. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
63. Mr. Todd to his detriment relied upon the financial disclosures made by defendant
Midwest Motors in the retail installment sales contract.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
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lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
64. The unlawful acts of defendants Midwest Motors, Rittenhouse and Miller and
each of them, caused Mr. Todd to suffer substantial, actual damages.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
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lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
65. Defendant Midwest did not provide Mr. Todd with a timely written statement
regarding the dealership's action on his application for credit or with a written statement of the
reasons why defendant Midwest Motors denied an extension of credit or alternatively revoked an
extension of credit.
ANSWER: Defendants deny that Midwest "denied" or "revoked" Plaintiff's credit
application. In further answer, Defendants state that Kalsee Credit Union, rather than
Defendants, denied Plaintiff's loan application. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
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automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up. Any remaining allegations or inferences are denied
as untrue.
66. Defendant Midwest Motors obtained Mr. Todd's consumer report (commonly
known as a "credit report") from one or more consumer reporting agencies and evaluated and
assessed the report in connection with the transaction.
ANSWER: Defendants admit that Midwest obtained Plaintiff's credit report, with the
express consent of Plaintiff. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
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67. One or more of defendant Midwest's employees reviewed and used Mr. Todd's
consumer report(s).
ANSWER: Defendants admit that Midwest obtained Plaintiff's credit report, with the
express consent of Plaintiff. In further answer, the transaction in question as described by
Plaintiff is false and misleading in that Midwest attempted to sell the automobile at issue
and obtain third-party financing for the Plaintiff through several lenders. Unfortunately
due to Plaintiff's credit rating he was denied credit with several lenders, which necessitated
the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved
the Plaintiff's application with the addition of Betty Todd as a cosigner but after further
review Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a
past auto repossession history. Midwest sought to obtain the Plaintiff financing from other
third-party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
V. Claims for Relief
Count 1 - Truth in Lending Act (TILA)
68. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
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69. The TILA required defendant Midwest Motors as creditor to disclose as the
"amount financed" the amount of credit of which plaintiff Mark Todd as debtor had actual use.
The TILA defines "credit" as "the right granted by a creditor to a debtor to defer payments of
debt or to incur debt and defer its payment." The retail installment sales contract stated a
specific "amount financed" in connection with the transaction between defendant Midwest
Motors and Mr. Todd.
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
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70. The TILA defines "creditor" as the "person to whom the debt arising from the
consumer credit transaction is initially payable on the face of the evidence of indebtedness." 15
U.S.C. § 1602(f)(2). In this case, the retail installment sales contract named Midwest Motors.
Thus, Midwest Motors was the creditor in the transaction.
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
71. Midwest Motors violated the TILA in its transaction with Mr. Todd because the
retail installment sales contract signed by Mr. Todd and his mother, Betty Jean Todd, and upon
which Mr. Todd made his down-payment, had granted Mr. Todd on specified terms as stated in
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the TILA disclosures contained thereon, when that information was false, inaccurate and
misleading because the credit granted by Midwest Motors in the transaction actually was illusory
and (at least according to Midwest Motors) conditioned upon Midwest's ability to sell the retail
installment sales contract to a third party finance company. Thus, Mr. Todd never had actual use
of the credit as represented by Midwest Motors in the TILA disclosures contained in the retail
installment sales contract.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
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72. Midwest Motors violated the TILA in its transaction with Mr. Todd because Mr.
Todd was never provided a copy of the retail installment sales contract signed by him and his
mother, Betty Jean Todd, and upon which Mr. Todd made his down payment.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
73. Defendant Midwest Motors violated the TILA by failing to comply with the
disclosure requirements of 15 U.S.C. §§ 1631, 1632, and 1638, and Regulation Z, 12 C.F.R. §§
226.17 and 226.18.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
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automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 2 - Equal Credit Opportunity Act (ECOA)
74. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
75. Plaintiff is an "applicant" as the term is defined in the ECOA, 15 U.S.C. §
1691a(b).
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ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
76. Defendant Midwest Motors is a "creditor" as the term is defined in the ECOA, 15
U.S.C. 1691a(e).
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
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Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
77. Plaintiff Mark Todd completed a credit application and applied to Midwest
Motors for credit in connection with the purchase of the 2013 Kia Optima from Midwest.
ANSWER: Defendants admit that Plaintiff completed a credit application. Defendants
deny that Plaintiff applied to Midwest for credit, as Plaintiff's credit application was
submitted to Kalsee Credit Union for approval on behalf of Plaintiff. In further answer,
the transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
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the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
78. Defendant Midwest denied plaintiff credit and/or revoked plaintiff's credit, which
denial and/or revocation constituted "adverse action" as the phrase is defined in the ECOA, 15
U.S.C. §1691(d)(6).
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
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the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
79. Defendant Midwest Motors failed to provide the plaintiff Mark Todd with a
notice of adverse action as required by the ECOA, 15 U.S.C. § 1691(d).
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 3 - Fair Credit Reporting Act (FCRA)
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80. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
81. Plaintiff is a "consumer" as the term is defined in the FCRA, 15 U.S.C. §
1681a(c).
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
82. Defendant Midwest Motors is a "person" as the term is defined in the FCRA, 15
U.S.C. § 1681a(b).
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ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
83. Midwest Motors took "adverse action" as the phrase is defined in the FCRA, 15
U.S.C. § 1681a(k), with respect to plaintiff Mark Todd, based in whole or in part on information
contained in a consumer report.
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
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third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
84. Defendant Midwest Motors willfully failed to provide plaintiff with a notice of
adverse action as required by the FCRA, 15 U.S.C. § 1681m, thereby violating 15 U.S.C. §
1681n. In the alternative, defendant Midwest Motors negligently failed to provide plaintiff with
a notice of adverse action as required by the FCRA, 15 U.S.C. 1681m, thereby violating 15
U.S.C. § 1681o.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
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cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 4 - Motor Vehicle Information and Costs Savings Act (MVICSA) (Odometer Act)
85. Defendant Midwest Motors provided no documentation to plaintiff Mark Todd
regarding the transfer of the 2013 Kia Optima's and its mileage or odometer reading.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
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Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
86. Defendant Midwest Motors is a "dealer" as that term is defined in the Motor
Vehicle Information and Costs Savings Act. 49 U.S.C. § 32702(2).
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
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be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
87. Defendant Midwest Motors performed a "transfer" of the 2013 Kia Optima as the
term is defined in the Motor Vehicle Information and Costs Savings Act. 49 U.S.C. § 32702(8).
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
88. That defendant Midwest's actions and misrepresentations in failing to provide to
plaintiff Mark Todd the necessary disclosures, including that required under the Motor Vehicle
Information and Costs Savings Act, constitute "fraud" as the term is defined in the Act.
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ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 5 - Michigan Motor Vehicle Sales Finance Act (MVSFA)
89. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
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90. Midwest Motors is an "installment seller" and a "seller" as the terms are defined
in the MVSFA. Midwest Motors is a "holder" as the term is defined in the MVSFA. Plaintiff is
an "installment buyer" and a "buyer" as the terms are defined in the MVSFA.
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
91. The MVSFA states: "An installment sales contract shall be in writing, and shall
contain all of the agreements between the buyer and the seller relating to the installment sale of
the motor vehicle sold, and shall be signed by both the buyer and the seller." M.C.L. §
492.112(a).
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ANSWER: The referenced statute speaks for itself, and no factual allegation is made,
and no response is required. To the extent a response is required, the allegation is neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
92. The MVSFA states: "An installment sales contract shall not be signed by a party
unless it contains all of the information and statements required by this act." M.C.L §
492.114(a).
ANSWER: The referenced statute speaks for itself, and no factual allegation is made,
and no response is required. To the extent a response is required, the allegation is neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
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question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
93. The MVSFA states: "An installment sales contract shall not contain a provision
by which a buyer waives a right of action against the seller, holder, or other person acting on
behalf of the holder for an illegal act committed . . . in the repossession of a motor vehicle . . .
M.C.L. § 492.114(d).
ANSWER: The referenced statute speaks for itself, and no factual allegation is made,
and no response is required. To the extent a response is required, the allegation is neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
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lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
94. The MVSFA states: "No act, agreement or statement by any buyer in any
installment sale contract shall constitute a valid waiver of any provision of this act intended by
the legislature for the benefit and protection of retail installment buyers of motor vehicles."
M.C.L. § 492.132.
ANSWER: The referenced statute speaks for itself, and no factual allegation is made,
and no response is required. To the extent a response is required, the allegation is neither
admitted nor denied and Plaintiff is left to his proofs. In further answer, the transaction in
question as described by Plaintiff is false and misleading in that Midwest attempted to sell
the automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
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Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
95. The MVSFA requires that each retail installment contract shall separately disclose
the various terms of credit, including the motor vehicle's cash price, amount of down payment,
unpaid cash price balance, cost of any insurance or travel emergency benefits procured by the
seller, other necessary or incidental costs which the seller contracts to pay on behalf of the buyer,
principal amount financed, amount of the finance charge, the time balance and the amount and
due date of each payment required. M.C.L. § 492.113.
ANSWER: This allegation states a legal conclusion to which no response is required. To
the extent a response is required, the allegation is neither admitted nor denied and Plaintiff
is left to his proofs. In further answer, the transaction in question as described by Plaintiff
is false and misleading in that Midwest attempted to sell the automobile at issue and obtain
third-party financing for the Plaintiff through several lenders. Unfortunately due to
Plaintiff's credit rating he was denied credit with several lenders, which necessitated the
need for a co-signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the
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Plaintiff's application with the addition of Betty Todd as a cosigner but after further review
Kalsee denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
96. Defendant Midwest Motors did not comply with the disclosure requirement of the
MVSFA because it represented to Mr. Todd that it had unconditionally guaranteed to him on the
terms specified in the RISC, when in fact, and according to Midwest, the information was false,
inaccurate and misleading because the granting of credit on the disclosed terms was conditioned
upon defendant Midwest's ability to sell the retail installment sales contract to a third-party
investor.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
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Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
97. Defendant Midwest Motors failed to disclose the finance charge to plaintiff Mark
Todd as required by the MVSFA because the purported extension of credit, according to
defendant Midwest, was conditional and, therefore, illusory.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
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the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 6 - Breach of Contract
98. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
99. Plaintiff entered into the retail installment sales contract with defendant Midwest
Motors with set terms regarding price, financing, payment and possession of the 2013 Kia
Optima.
ANSWER: Neither admitted not denied, and Defendants leave Plaintiff to his strictest
proofs. Defendants further state that the contract was contingent upon Plaintiff's
obtaining final approval for a loan to finance the purchase. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
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was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
100. The foregoing contract terms were material to plaintiff Mark Todd.
ANSWER: Defendants lack knowledge or information as to the true of the allegation
that the referenced "contract terms" were "material" to Plaintiff. In further answer, the
transaction in question as described by Plaintiff is false and misleading in that Midwest
attempted to sell the automobile at issue and obtain third-party financing for the Plaintiff
through several lenders. Unfortunately due to Plaintiff's credit rating he was denied credit
with several lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately,
Kalsee Credit Union initially approved the Plaintiff's application with the addition of Betty
Todd as a cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit
request because Betty Todd had a past auto repossession history. Midwest sought to obtain
the Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
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101. The retail installment sales contract contained no language making the contract
conditional upon Midwest's success in selling the contract to an investor or other third-party.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
102. Alternatively, any alleged agreement between Midwest Motors and plaintiff Mark
Todd that contained language making the contract conditional upon Midwest's success in selling
the contract to an investor or other third-party was unlawful and unenforceable.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
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lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
103. Plaintiff Mark Todd performed all conditions required of him under the retail
installment contract.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
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was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
104. Midwest Motors breached its contract with Mr. Todd.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
105. Each breach of the contract was material.
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ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
106. Plaintiff Mark Todd has suffered loss as a result of Midwest's breach of contract.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
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because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 7 - Michigan Uniform Commercial Code
107. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
108. Defendant Midwest Motors violated Article Nine of the MUCC, M.C.L. §
440.9101, et seq., when it took possession of plaintiff Mark Todd's 2013 Kia Optima, contrary to
the default and repossession provision remedies of Article 9 of the Uniform Commercial Code.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
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Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
109. Plaintiff Mark Todd suffered loss as a result of defendant Midwest's multiple
violations of the UCC.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
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or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
Count 8 - Common Law Conversion and Statutory Treble Damages
110. Plaintiff Mark Todd incorporates the foregoing paragraphs by reference.
ANSWER: Defendants incorporate by reference their previous responses as if fully set
forth herein.
111. At all times relevant hereto, plaintiff Mark Todd had the exclusive right to the
immediate possession of the 2013 Kia Optima.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
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lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
112. Defendants Midwest Motors, Miller and Rittenhouse, and each of them, converted
plaintiff's 2013 Kia Optima.
ANSWER: Denied as untrue.
113. Defendants Midwest Motors, Miller and Rittenhouse, and each of them,
knowingly converted plaintiff's 2013 Kia Optima.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
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the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
114. Defendants Midwest Motors, Miller and Rittenhouse, and each of them, received
and possessed plaintiff's 2013 Kia Optima.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
115. Defendants Midwest Motors, Miller and Rittenhouse, and each of them received
and possessed, the 2013 Kia Optima knowing it had been converted.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
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automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
116. The conversion of the 2013 Kia Optima was to defendant Midwest's, defendant
Miller's, and defendant Rittenhouse's own use.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
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Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
117. Defendants Midwest Motors, Miller and Rittenhouse, and each of them, refused to
return the 2013 Kia Optima to Mr. Todd.
ANSWER: Defendants admit that Midwest did not return the subject vehicle to Plaintiff,
as Plaintiff's loan application was denied by Kalsee Credit Union, and he was not entitled
to possession of the vehicle. Any remaining allegations or inferences are denied as untrue.
In further answer, the transaction in question as described by Plaintiff is false and
misleading in that Midwest attempted to sell the automobile at issue and obtain third-party
financing for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit
rating he was denied credit with several lenders, which necessitated the need for a co-
signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's
application with the addition of Betty Todd as a cosigner but after further review Kalsee
denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
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purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
118. Defendants Midwest Motors, Miller and Rittenhouse, and each of them, refused to
return the 2013 Kia Optima to Mr. Todd, knowing that the automobile had been converted.
ANSWER: Defendants admit that Midwest did not return the subject vehicle to Plaintiff,
as Plaintiff's loan application was denied by Kalsee Credit Union, and he was not entitled
to possession of the vehicle. Any remaining allegations or inferences are denied as untrue.
In further answer, the transaction in question as described by Plaintiff is false and
misleading in that Midwest attempted to sell the automobile at issue and obtain third-party
financing for the Plaintiff through several lenders. Unfortunately due to Plaintiff's credit
rating he was denied credit with several lenders, which necessitated the need for a co-
signer, Betty Todd. Ultimately, Kalsee Credit Union initially approved the Plaintiff's
application with the addition of Betty Todd as a cosigner but after further review Kalsee
denied Plaintiff and Betty Todd's credit request because Betty Todd had a past auto
repossession history. Midwest sought to obtain the Plaintiff financing from other third-
party lenders, but due to credit worthiness issues, it was not able to obtain additional
acceptable financing for the Plaintiff from a third-party lender. Since Midwest is not the
lender and just the automobile seller, it does not approve or deny loans for prospective
purchasers. Because financing was denied, the sale of the automobile in question could not
be finalized and therefore Midwest demanded return of the automobile in question and the
trade-in automobile provided by Plaintiff was made available to the Plaintiff for pick-up.
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119. Plaintiff Mark Todd has suffered loss as a result of the conversion of the 2013 Kia
Optima.
ANSWER: Denied as untrue. In further answer, the transaction in question as
described by Plaintiff is false and misleading in that Midwest attempted to sell the
automobile at issue and obtain third-party financing for the Plaintiff through several
lenders. Unfortunately due to Plaintiff's credit rating he was denied credit with several
lenders, which necessitated the need for a co-signer, Betty Todd. Ultimately, Kalsee Credit
Union initially approved the Plaintiff's application with the addition of Betty Todd as a
cosigner but after further review Kalsee denied Plaintiff and Betty Todd's credit request
because Betty Todd had a past auto repossession history. Midwest sought to obtain the
Plaintiff financing from other third-party lenders, but due to credit worthiness issues, it
was not able to obtain additional acceptable financing for the Plaintiff from a third-party
lender. Since Midwest is not the lender and just the automobile seller, it does not approve
or deny loans for prospective purchasers. Because financing was denied, the sale of the
automobile in question could not be finalized and therefore Midwest demanded return of
the automobile in question and the trade-in automobile provided by Plaintiff was made
available to the Plaintiff for pick-up.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
DEFENSES
NOW COME Defendants, by and through their attorneys, Varnum LLP, and state the
following defenses:
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1. Plaintiff's Complaint, in whole or in part, fails to state a claim upon which relief
can be granted.
2. Plaintiff fails to state a claim against Defendants Donald J. Miller and Eric M.
Rittenhouse.
3. This Court lacks subject matter jurisdiction over some or all of Plaintiff's claims.
4. The claim or controversy alleged by Plaintiff in the herein cause of action is
subject to an agreement to arbitrate.
5. Plaintiff suffered no compensable damages due to Plaintiff's actions.
6. Any loss or damages alleged by Plaintiff are the result of Plaintiff's failure to
qualify for financing.
7. Defendants state that any purported damages Plaintiff suffered were due to his
own actions, inaction and/or negligence.
8. Plaintiff's claims are barred by unclean hands, waiver, estoppel, set-off, and/or
election of remedies.
9. Defendants assert all available immunities, defenses, privileges, and rights
available under the applicable statutes herein, court rules, and as permitted by law.
10. Defendants reserve the right to assert additional defenses as they may be
identified and supported by discovery conducted throughout the course of this litigation.
WHEREFORE, Defendants request that this Honorable Court dismiss Plaintiff's
Complaint, award Defendants' costs and attorney fees, and grant such other and further relief as
may be just and equitable.
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RELIANCE ON PLAINTIFF'S DEMAND FOR TRIAL BY JURY
Defendants hereby rely on Plaintiff's demand for trial by jury.
Dated: April 25, 2016 VARNUM LLP
Attorneys for Defendants By: /s/ Randall J. Groendyk
Randall J. Groendyk (P37196) Steven T. Buquicchio (P62076) Bridgewater Place, P.O. Box 352 Grand Rapids, MI 49501-0352 (616) 336-6000
[email protected] [email protected] 10482862_1.docx
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