KANSAS CITY – The U.S. District Court for the Western District of Missouri granted a summary judgment in favor of KCI Auto Auction Inc. in an alleged fraud case against Alonzo Anderson of Lucky 7 Used Cars LLC, after finding no significant discrepancy in the facts of the case.
U.S. Magistrate Judge Nanette K. Laughery issued her ruling April 13.
KCI filed the summary judgment against Anderson for breach of contract, action on the account, account stated, fraudulent misrepresentation, fraudulent conveyance, unjust enrichment and quantum meruit, conversion, negligence per se, and alter ego/piercing the corporate veil.
KCI settled claims against defendants Tom Ephrem, David Ephrem, Danny Ephrem, Barry Ristick, Angelo Jefferson, and Quality Used Cars LLC in December 2017.
The court entered a default judgment against Lucky 7 Used Cars L.L.C and Lucky 7 Discount Auto Sales LLC and KCI voluntarily dismissed defendants Jason Ephrem and J.J. Ephrem.
Thus, Anderson was left to proceed pro se.
The court concluded Anderson "personally guaranteed full payment of any debts of Lucky 7 Used Cars to KCI," according to court documents. Anderson then allegedly refused to pay the roughly $249,000 owed on Lucky 7's account, thereby breaching the contract.
KCI used the affidavit of Tom Ephrem, Danny Ephrem, David Ephrem, Barry Ristick, and Angelo Jefferson, and the unanswered requests for admission to constitute the action on account claim, which the court accepted.
For the account stated claim, Anderson argued that the other defendants did not have the authority to enter into the agreement with KCI. The court found this argument insufficient and granted a summary judgment.
Anderson did not specifically oppose the summary judgment on the fraudulent misrepresentation claim. The court ruled he admitted to the claim by virtue of failing to respond to KCI’s requests for admission.
The court entered a summary judgment against Anderson for fraudulent conveyance citing a violation of Missouri Uniform Fraudulent Transfer Act, by delaying a "transfer... with an intent to hinder, delay, or defraud creditors," according to court documents.
The court did not address unjust enrichment and quantum meruit because KCI prevailed in the breach of contract claims.
KCI sought a summary judgment for conversion against Anderson for the unauthorized assumption of the right of ownership over the personal property of another to the exclusion of the owner's rights. The court reasoned Anderson deprived KCI the right to possess the vehicles by selling them.
According to the agreement between KCI and Lucky 7, the defendants were permitted to take immediate possession of the purchased vehicles, but KCI retained the original titles. The defendants also agreed not to sell or transfer the vehicles until full payment was made and the titles were transferred.
The court awarded summary judgment for negligence and piercing the corporate veil because Anderson registered Lucky 7 with the Missouri Secretary of State under a false identity, which caused injury to KCI.