724 F.Supp.3d 532
W.D. Va.2024Background
- Adrianna Shelton purchased a 2011 Jeep Compass from Trader Ricks LLC, financing part of the purchase and making monthly payments.
- Shelton entered into an agreement allowing her boyfriend’s lawn care work to count for three payments, keeping her current on the loan.
- Trader Ricks, allegedly in retaliation for a separate dispute, ordered repossession of Shelton’s Jeep, though she was not in default; the car was forcibly towed from her property by Cody Marshall.
- During the repossession, Shelton objected both verbally and in writing, and was eight months pregnant at the time; the event caused significant emotional distress.
- Defendants failed to respond to the lawsuit, leading to clerk's default and a subsequent motion for default judgment by Shelton.
- Shelton asserted claims under the FDCPA (against Marshall), TILA (against Trader Ricks), the Virginia UCC, and for conversion (against both defendants).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Violation of FDCPA by repossession | Marshall repossessed car without legal right as Shelton was not in default | None (defaulted) | Marshall liable; $9,423.28 actual, $1,000 statutory damages, attorney’s fees |
| Violation of TILA through deficient disclosures | Trader Ricks failed to provide required and clear TILA disclosures | None (defaulted) | Trader Ricks liable; $319.52 statutory damages, attorney’s fees |
| Conversion (theft/wrongful taking of car) | Defendants wrongfully took and exercised dominion over Shelton’s car | None (defaulted) | Both liable; $9,423.28 actual and $28,269.84 punitive damages |
| Virginia UCC repossession rules (breach of peace, pre-default, 60% rule) | Trader Ricks repossessed pre-default, breached the peace, and failed to resell as required | None (defaulted) | Trader Ricks liable; $410.96 statutory damages |
Key Cases Cited
- United Leasing Corp. v. Thrift Ins. Corp., 247 Va. 299 (clarifies standard for conversion in Virginia)
- Philip Morris Inc. v. Emerson, 235 Va. 380 (Virginia standard for punitive damages ratio)
- Universal Credit Co. v. Taylor, 164 Va. 624 (peaceable repossession rule in Virginia)
- Avocet Dev. Corp. v. McLean Bank, 234 Va. 658 (punitive damages for intentional torts like conversion)
- Johnson v. Hugo’s Skateway, 974 F.2d 1408 (relationship between actual and punitive damages)