Law.com is reporting that U.S. Bank has sued Lehman Hyundai Subaru, Inc. for alleged breach of contract. (Read the Law.com story.)
Here’s just a portion of the filed complaint:
B. The Ferrarini Transaction.
9. On or about July 17, 2020, Lehman originated a retail installment sale contract
(“Subject Contract”) with a fraudster impersonating Teresa Ferrarini to finance the purchase of a 2020 Genesis G90, VIN KMTF34PA4LU090652 (the “Vehicle”). A true and correct copy of the Subject Contract is attached hereto as Exhibit “B”.
10. Immediately following the execution of the Subject Contract, Lehman assigned its
rights to the Subject Contract to U.S. Bank pursuant to the terms of the Dealer Agreement. See Ex.
B.
11. In the months following the assignment of the Subject Contract to U.S. Bank, U.S.
Bank was contacted by representatives of Teresa Ferrarini, including her daughter and power of attorney, Carla Teresa Queen. U.S. Bank was notified that the Subject Contract was fraudulent and that Ms. Ferrarini did not receive a vehicle from Lehman and did not execute or approve the Subject Contract.
12. Queen confirmed that the signature on the face of the Subject Contract was forged.
Queen executed a fraud affidavit and filed a police report regarding the incident.
13. U.S. Bank has determined that a fraudster impersonating Teresa Ferrarini obtained
the Vehicle using Ferrarini’s name and demographic information.
14. Upon discovering the fraud, U.S. Bank contacted Lehman to inquire about the facts
of the execution of the Subject Contract.
15. Lehman responded to inquiries from U.S. Bank and indicated that, in contravention
of the Dealer Agreement, Ferrarini had never appeared in person at the dealership and that a dealership employee delivered the Vehicle to a private residence.
16. U.S. Bank has suffered damages by being unable to recover the funds paid to
Lehman for the fraudster’s acquisition of the Vehicle.
17. By permitting a fraudster to purchase the Vehicle in the name of Teresa Ferrarini,
Lehman has violated, inter alia, Sections 7.A, 7.B, 7.D, and 7.F and 7.L of the Dealer Agreement,
triggering Lehman’s obligation to pay damages under Section 8.A of the Dealer Agreement.
18. U.S. Bank has made demands upon Lehman, including by letter dated April 20,
2021.
19. To date, Lehman has failed to pay damages as it is required to by the terms of the
Dealer Agreement.
