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A party who fails to respond to a writ of possession and does not assert arbitration rights until after the vehicle has been repossessed and the car dealer has filed a breach of contract suit has waived its right to arbitration, a state court in Georgia held.
In Almonte v. West Ashley Toyota, Nos. A06A1250, A06A1251, 2006 WL 2865510 (Ga. Ct. App. Oct. 6, 2006), West Ashley Toyota repossessed an SUV from Almonte after Almonte’s credit application was denied and he failed to pay the contract price for the vehicle.
Toyota then brought an action against Almonte, alleging breach of contract and trespass to chattels. The trial court granted Toyota’s motion for summary judgment, and Almonte appealed, arguing that the court erred in failing to enforce an arbitration agreement in the parties’ contract.
The Court of Appeals held that Almonte had waived the right to arbitration. Almonte failed to respond to two writs of possession filed by Toyota (one in Georgia and another in North Carolina because Almonte took the car to North Carolina). Additionally, Almonte presented no evidence that he raised the issue of arbitration until after West Ashley Toyota recovered the vehicle and brought this suit.
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