ALTON — Scott Credit Union is suing a Cape Girardeau, Mo., used car dealership for allegedly breaching a failure to repurchase contract.
Scott Credit Union filed the suit on Feb. 21 in Madison County Circuit Court against Cape Cars Auto Group LLC, alleging breach of contract.
The complaint states that in February 2018, Scott Credit Union and Cape Cars entered into a dealer agreement. The agreement stated that Cape Cars was to sell Scott Credit Union certain retail installment sales contracts or leases that dealt with financing a vehicle purchase. Scott Credit Union alleged that in September 2019 a buyer entered into an agreement with the car company for a vehicle sale. Scott Credit Union purchased that contract per the agreement; however, Cape Cars closed the sale afterwards and delivered the vehicle to Northwestern Memorial Hospital in Chicago. Scott Credit Union alleges that doing so violated the contract.
According to the contract between Scott Credit Union and Cape Cars, if the car company broke the terms, it needed to buy the contract from Scott Credit Union within 10 days of their demand. Scott Credit Union alleges it followed through with the demand that Cape Cars pay the unpaid principal balance of the contract and buy out the contract, which to date has yet to happen.
Scott Credit Union claims the car dealer's failure to repurchase the contract and misrepresenting the nature of the contract by not immediately revealing who it was entering into a contract with violated the agreed-upon terms Scott Credit Union made with Cape Cars.
The credit union claims as a result of the breach of contract, it should receive $54,276 in damages. In addition, the credit union is seeking the cost and fees associated with the court filing and proceedings, which it said is also spelled out in their initial agreement.
The plaintiff is represented by Geri Lynn Arrindell of Mickes O'Toole LLC in St. Louis.
Madison County Circuit Court case number 20-L-228