In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union.

Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000.

The vehicle’s odometer displayed mileage of 18,334 miles, however, the vehicle actually had more than 155,000 miles on it.

The purchaser later sued the credit union, claiming fraud, misrepresentation and breach of contract, asserting that he would not have bid $5,000 for the car if he had known of the additional miles that were not displayed on the odometer.

The new purchaser was told by the credit union that the vehicle was in good shape, although the credit union was not asked by the purchaser if the mileage on the odometer was correct. The purchaser maintained that he did not realize the mileage discrepancy until he went to sell the vehicle at a later date.

Purchaser further claimed that he did not initially read the certificate of title supplied by the credit union; the certificate of title clearly stated that mileage on the odometer was not accurate and that there was a discrepancy with the actual mileage.

The trial court found that the purchaser understood he was buying the vehicle “as is” and that the credit union made no misrepresentations as to the vehicle’s mileage.

The purchaser’s appeal to the Supreme Court of Alabama was to no avail and the trial court’s ruling in favor of the credit union was affirmed.

Author: Charles R. Harroun, Attorney at Law