Credit Acceptance Corporation v. Stewart Liggon
CPU4-16-003564
| Del. Ct. Com. Pl. | Jul 7, 2017Background
- Credit Acceptance Corporation (assignee of First Choice Auto Sales) sued Stewart Liggon for default on a retail installment contract for a 2007 Chevrolet Impala.
- Liggon answered and counterclaimed, alleging the vehicle was a "lemon," that the dealer withheld a CarFax, and asserting fraud and damages.
- Plaintiff moved to dismiss and compel arbitration based on an arbitration clause in the retail installment contract.
- Liggon’s mother, Elizabeth Liggon (a nonattorney), appeared and filed a motion seeking appointment of counsel for her son, asserting he has dyslexia and cannot read.
- The court found Elizabeth’s filings constituted unauthorized practice of law and struck/denied her motion to appoint counsel.
- The court found the arbitration clause covered both plaintiff’s claim and defendant’s counterclaim, concluded Plaintiff had not waived arbitration, and granted the motion to dismiss and compel arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court should compel arbitration under the contract | Contract contains a broad arbitration clause covering "any Dispute," so court lacks jurisdiction and should compel arbitration | Liggon says he did not read or understand the arbitration clause due to dyslexia and limited education | Court: Arbitration clause valid and covers claims; compel arbitration and dismiss action |
| Whether plaintiff waived its right to arbitrate by litigating in court | Plaintiff moved to compel arbitration shortly after suit and did not engage in extensive litigation or discovery | Defendant implies delay or participation may estop arbitration | Court: No waiver—Plaintiff acted promptly; no substantial non-arbitration actions or prejudice to Defendant |
| Whether liggon’s mother could file motions / represent him | Plaintiff: Nonattorney filings are unauthorized and should be stricken | Ms. Liggon: Sought to assist due to son's alleged incapacity | Court: Nonattorney practice of law; denied motion by Ms. Liggon and granted cross-motion to strike |
Key Cases Cited
- In re Estep, 933 A.2d 763 (Del. 2007) (unauthorized practice of law; non‑attorneys may not represent others in court)
- NAMA Holdings, LLC v. Related World Mkt. Ctr., LLC, 922 A.2d 417 (Del. Ch. 2007) (courts lack subject matter jurisdiction over disputes contractually committed to arbitration)
- Graham v. State Farm Mut. Auto. Ins. Co., 565 A.2d 908 (Del. 1989) (failure to read a contract generally does not excuse contractual obligations)