Need legal opinion on bankruptcy cobra purchase!

[TKing]

Please give me your legal opinion about the purchase of a Cobra. Am I required to buy the car since my bid was accepted by the court?

I agreed (email) to purchase a SPF Cobra for sale through a bankruptcy proceeding. I started the process in August 2012. Viewing and test driving the car was difficult because the schedule of the owner and trustee. I was told in October 2012 the court needed about 2 weeks to approve the sale. I bid and won, but it took 2 more months for the court to approve the sale.

I no longer want to buy the car for several reasons. The car is still in possession of the owner and may not be protected from accidents in and around the garage. Is the car being driven? Is the engine protected with sufficient antifreeze? I have many similar car care concerns especially considering the current owner no longer cares. The owner has also lost his house and in preparation to move has stacked stuff 5’ high around the car in the garage. The value of the car would be greatly diminished if the paint is damaged.

Kentucky DMV ended “classic car plates” for replicas during the time I was waiting for the courts approval for me to buy the car. Previously sales tax and annual property tax were not required on cars with classic plates. This is a big additional expense.

To the best of my knowledge an email can be considered a legally binding contract, but I have not completed any paperwork or given a down payment.

The bankruptcy trustee has agreed to lower the price of the car to offset the Kentucky sales tax cost, but now the attorney wants the car paid for in advance before he seeks permission to sell me the car (at lower price). The attorney has threatened me with a court order requiring me to pay the difference between the cars future sales price and the price I bid if I do not accept his purchase requirements.

Since the attorney’s threat email I agreed to buy the car at the lower price, but told the attorney I would not pay for the car upfront and must inspect the car again prior to the close of the sale. I did this via email twice and a phone call over the last 3 week. He has not responded to my messages or phone call. I guess he is pissed.

I cannot afford a legal fight and I don’t want to buy the car if the car has been damaged. I would lose all leverage if I pay for the car upfront. I asked the attorney to take the car to a safe storage facility, but he refused.

This will be my fourth Cobra purchase and three of the four have been very difficult. I was not meant to drive a Cobra!

Please give me your legal opinion. Must I buy the car or pay the consequences?

Thanks
Tom

X SPF140
X SPF1823
X Superformance S1
X Everett Morrison Cobra

[LMH]

I'm not a lawyer, so my opinion is just that, my own. I would say that since your bid was accepted and you "won", you would need to pay for the car. However, I don't see how anyone could ask you to pay for it before the sale at the lower price is permissible.
Have you talked to an attorney?
Larry

[joyridin']

Did you put a deposit on the car? Usually, in order for a contract to be valid, it require 3 things. 1) a willingness to buy the car. 2) your signature. 3) a deposit. The first item is obviously open to debate, but since you bid, it probably has been satisfied. I assumed you signed something when you entered the auction, so the second has been satisfied. That leaves a deposit. If you gave one, they can probably sue you. If you did not, you can usually get out of it. A deposit could be anything, not necessarily money.

[TKing]

No, attorny yet. I'm trying to get other opinions and a better understanding of the problem before spending more money.

[TKing]

Hi Joyridin:

No, I did not make a deposit, so perhaps I can get out of it. Actually I want the car, but the sale process has been such a headache it's not worth all the potential problems.

[Tommy]

Tom,
I'm no attorney, but here's what I would do if I wanted to proceed without the benefit of paid legal advice. I would send a registered letter to the seller's attorney (and an email telling him to look for the letter) offering to close the deal as previously agreed subject to the following stipulations:

• The car is in the condition described in the deal.
• A clear title document is provided at the time full payment for the car is provided.
• The deal is closed not later than (date you choose).

I would close by saying that I entered into the purchase agreement based on assurances the deal would be done by (date) and the car would be kept in very good condition until the sale was complete. But if those conditions are not met, I will consider the sellers actions to have voided the agreement.

Good luck.

[patrickt]

Jeez... Don't rely on anything posted here. Hire yourself a lawyer that is admitted to the bankruptcy court where all of this stuff is going on. Do that first thing tomorrow.

[TKing]

Damn, nothing is easy

[Tommy]

Originally Posted by patrickt

Jeez... Don't rely on anything posted here. Hire yourself a lawyer that is admitted to the bankruptcy court where all of this stuff is going on. Do that first thing tomorrow.

Tking: "I cannot afford a legal fight ..... "

-------------------------

As long as we're disregarding Tom's original question, I suggest he hire former Attorney General Ben Civletti. I understand he charges $1,000 per hour.

[tcrist]

The real question is "can he afford NOT to fight".

IMO, you can only state that the car has to be in the same state that it was in when you inspected it the first time, if in fact you did.

If you did not get a chance to inspect it then you give up the right so say what kind of shape it was/is in. Did the info on the bankruptcy proceeding state what shape the car was in and even if it ran? That is where buying sight unseen becomes an issue. You can only go by the pictures.

When you bid on it you knew that it was still in the owner’s possession so you should have known that it could be driven and damaged in some way.

You should be able to get a lawyers advice for almost nothing. There are some out there that will talk to you for 30 min or so at no or minimal cost. That is what you should do.

Edit:
Reviewing some of your reasons for NOW not wanting to buy the car leads me to believe that you are just having buyers remorse & regretting that you bid in the car in the first place and you are trying to find anyway not to have to buy it.
If I am wrong in that statement I appoligise up front.

[TKing]

tcrist:

Thanks for your comments.

I inspected the car in detail and test drove the car. The car has a few mechanical issues which I accepted. There were no defects in the body, paint, or interior. I did extensive mechanical work on the other SPF cars I had, so I am very familiar with the cars.

I told the trustee attorney I would buy the car now at the aggreed to price, but I wanted some time deadline to close the deal and also one last inspection. The attorney never responded.

I will find an bankruptcy attorney tomorrow.

Tom

[LMH]

I think that's a good idea. This just sounds like a mess and we all know lawyers can get everything straight!
Larry

[tcrist]

Tom,
Sounds like you have done all the work that you could. Good luck and I hope it works out the best for you. Which ever way it go's.

[Mastiff107]

I have a degree in pre-law for what it's worth. I wish you well with your new car. If they want to go after you, they are going to win and it's going to cost you more in legal fees to fight it than buying an original Shelby. There is no way an attorney will give you free advice. That is only done in cases where they are guaranteed a fee upon resolution of the case (divorce, disability etc). Again, if they are going to go after you you will spend time in court and attorney fees, retainer, etc. If you want to get the best information available expect to pay a consultation fee of about $500.00 and up with an attorney with a good rep, who will talk to you and research some caselaw. By the way, you don't want a bankruptcy attorney unless you are filing for bankruptcy, you just want a good civil attorney that isn't specialized (divorce, accident, disability claims). The issue is not a question of bankruptcy law but a straight contract to purchase.

[Thor maine]

Originally Posted by Tommy

Tom,
I'm no attorney, but here's what I would do if I wanted to proceed without the benefit of paid legal advice. I would send a registered letter to the seller's attorney (and an email telling him to look for the letter) offering to close the deal as previously agreed subject to the following stipulations:

• The car is in the condition described in the deal.
• A clear title document is provided at the time full payment for the car is provided.
• The deal is closed not later than (date you choose).

I would close by saying that I entered into the purchase agreement based on assurances the deal would be done by (date) and the car would be kept in very good condition until the sale was complete. But if those conditions are not met, I will consider the sellers actions to have voided the agreement.

Good luck.

You also want to send a letter to the court and judge that is overseeing the bankruptcy. The court will check and has the final say over deals made by the trustee so if any below the boards deal happens the judge could reverse it.

[patrickt]

Originally Posted by patrickt

Hire yourself a lawyer that is admitted to the bankruptcy court where all of this stuff is going on.

... because there is a better than 50/50 chance that the Judge's Order approving the sale of the car to you included language like "This Court shall retain jurisdiction to enforce and implement the terms and provisions of the sale agreement...."

Let us know how it all plays out....

[DanEC]

I would think you have the right to a final inspection of the property at the time of conclusion of the sale when money changes hands. If the paint is damaged when you inspect it then you should have grounds to void the sale - or get a further price reduction.

[saltshaker]

Call Lawyers Referal Service; available in every county in the US. Call in your county and they will provide you with a Laywer who fits your needs for $20.00 for 20 min's of questions and answers!
Jon

[TKing]

Thanks everyone for your comments. It helps to hear opinions before taking action. The court order approving sale does not say "This Court shall retain jurisdiction to enforce and implement the terms and provisions of the sale agreement...." , but I would not be surprised if the court would enforce such a provision (I loose).

Tom

[mrmustang]

Originally Posted by TKing

Thanks everyone for your comments. It helps to hear opinions before taking action. The court order approving sale does not say "This Court shall retain jurisdiction to enforce and implement the terms and provisions of the sale agreement...." , but I would not be surprised if the court would enforce such a provision (I loose).

Tom

Tom,

PM me with the details, maybe I'll buy it from (through) you if it makes economic sense.


Bill S.