Friday, September 29, 2023
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Chrysler Avoids $80,000 Judgment in Bank Case

(CN) - Chrysler will not have to pay a default judgment to a Kansas bank that sought repayment of more than $80,000 in operating funds for a car dealership, the Kansas Court of Appeal ruled.

In 2004, First National Bank in Bellville provided financing for Ronald and Rhonda Sankey and Sankey Motors for the purchase of cars for their dealership.

When the dealership defaulted on the loan, the bank asserted its claim on the dealership's accounts receivable. To that end, the bank sought to recover $80,700 from Chrysler Financial Co.

Judge Green agreed with Chrysler that the bank's claim for a default judgment was void, because the damages requested by the bank were not liquidated.

"There is nothing in the record on which to establish the date on which the damages claimed in the bank's petition became due and the actual amount Chrysler owed the bank," Green wrote.

Because this case involved non-liquidated damages, the bank was required to notify Chrysler of its motion for a default judgment.

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