Massey v. Credit Acceptance Corporation
1:13-cv-00090
S.D. Miss.Jun 10, 2013Background
- Massey sued Credit Acceptance and Wynn for unfair practices, misrepresentation, and related tort/contract claims arising from a Wynn warranty on a financed vehicle.
- Wynn warranty denial allegedly caused Massey’s default and difficulties paying the loan; Credit Acceptance obtained a default deficiency judgment in Mississippi county court.
- Massey’s claims target the warranty and related conduct, seeking damages, restitution, and injunctive relief.
- Credit Acceptance moves to dismiss with prejudice under res judicata and collateral estoppel; Wynn joins to seek arbitration.
- Massey argues waiver of arbitration and lack of third-party beneficiary status for Wynn; Wynn seeks arbitration as a non-signatory.
- Court grants Credit Acceptance’s motion to dismiss and Wynn’s motion to compel arbitration, staying the case pending arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Massey’s claims | Massey | Credit Acceptance | Res judicata bars claims against Credit Acceptance |
| Whether collateral estoppel applies | Massey | Credit Acceptance | Collateral estoppel not reached; res judicata enough to dismiss |
| Identity of subject matter in the prior and current actions | Different subject matter (warranty vs finance) | Intertwined subject matter | Identity present; same transactional nucleus |
| Identity of the cause of action | Different legal bases | Same underlying transaction | Same cause of action; barred |
| Arbitrability: non-signatory Wynn’s ability to compel arbitration | Wynn cannot compel | Wynn may enforce arbitration as a non-signatory | Wynn entitled to invoke arbitration under incorporation by reference |
Key Cases Cited
- Local 1351 Int’l Longshoremens Ass’n v. Sea-Land Serv., Inc., 214 F.3d 566 (5th Cir. 2000) (res judicata and collateral estoppel issues are for courts)
- Harrison v. Chandler-Sampson Ins., Inc., 891 So.2d 224 (Miss. 2005) (identity of causes of action under Mississippi law)
- Copiah Med. Assoc. v. Miss. Baptists Health Sys., 898 So.2d 656 (Miss. 2005) (identity of subject matter—intertwined agreements)
- Magee v. Griffin, 345 So.2d 1027 (Miss. 1977) (prior judgment bars subsequent damages claims)
- Little v. V&G Welding Supply, Inc., 701 So.2d 133 (Miss. 1997) (privity concept for nonparty defendants in res judicata)
- Hood v. Mordecai, 900 So.2d 370 (Miss. Ct. App. 2004) (finality of default judgments under Mississippi law)
- Franklin Collection Serv., Inc. v. Stewart, 863 So.2d 925 (Miss. 2003) (default judgments adjudicated on the merits)