United States District Court, E.D. Michigan, Southern Division
BRUCE K. PERRY, Plaintiff,
CHASE AUTO FINANCE and JP MORGAN CHASE BANK, N.A., Defendants.
OPINION AND ORDER GRANTING DEFENDANT'S MOTION FOR
SUMMARY JUDGMENT (DOC. 17) AND GRANTING PLAINTIFF'S
MOTION FOR LEAVE TO FILE SECOND AMENDED COMPLAINT (DOC.
CARAM STEEH UNITED STATES DISTRICT JUDGE
Bruce K. Perry brings various tort claims against defendants
JP Morgan Chase Bank, N.A. and Chase Auto Finance
(hereinafter collectively referred to as Chase). This matter
is presently before the Court on Chase's motion for
summary judgment, (Doc. 17), and Perry's motion for leave
to file a second amended complaint, (Doc. 22). Pursuant to
Local Rule 7.1(f)(2), the Court shall rule without oral
argument. For the reasons stated below, Chase's motion is
GRANTED and Perry's motion is GRANTED.
August 2014, Perry obtained a $34, 809.70 loan from The Auto
Place, Inc. to purchase a 2010 Mercedes-Benz S550. The terms
of the loan and the parties' respective obligations are
stated in a Retail Installment Sales Contract (the RISC).
(Doc. 17-2). Pursuant to the RISC, Perry agreed to pay the
sum owed under the contract “even if the vehicle is
damaged, destroyed, or missing.” (Doc. 17-2 at PageID
116). Perry further agreed not to “sell, rent, lease,
or transfer any interest in the vehicle” without
written permission from The Auto Place, Inc. (Doc. 17-2 at
PageID 116). The Auto Place, Inc. thereafter transferred its
interest in the RISC to Chase.
2016, Perry listed the vehicle for sale on Craigslist. (Doc.
17-3 at PageID 119). At this time, Perry owed approximately
$24, 000 on the loan. Perry did not advise Chase of his
intent to sell the vehicle. (Doc. 17-4 at PageID 137). He
ultimately agreed to sell the vehicle to an individual
identifying himself as Desmond Moore. (Doc. 17-3 at PageID
119). Moore was to send a check for $40, 000 directly to
about May 17, 2016, Chase received a personal check
purportedly drawn from an USAA Federal Savings Bank account
held in the name of Vance Cumberland. (Doc. 17-5 at PageID
187; 17-6 at PageID 189). On May 23, 2016, Chase sent Perry a
letter congratulating him on “paying off [his] account
with [Chase].” (Doc. 17-6 at PageID 189). Chase
acknowledged Perry's “final payoff amount of $40,
000.00 was received on Tuesday, May 17, 2016.”
(Id.). Chase released its lien on the vehicle on May
23, 2016. (Doc. 17-7 at PageID 191).
alleges that he relied on this information when he delivered
the vehicle's title and keys to Vance Cumberland on May
29, 2016. (Doc. 12 at PageID 67).
about June 1, 2016, USAA Federal Savings Bank returned the
check to Chase as altered or fictitious. (Doc. 17-8 at PageID
199). On June 2, 2016, Chase notified Perry that the check
had been returned by USAA Federal Savings Bank and that
Perry's loan account had been reopened. (Doc. 17-9 at
filed this civil action in Wayne County Circuit Court on
December 7, 2016. (Doc. 1-1 at PageID 13). He raised three
claims; detrimental reliance, conversion, and fraud. (Doc.
1-1 at PageID 11-12). On June 21, 2017, the parties
stipulated to allow Perry to file an amended complaint that
added a negligence claim. (Doc. 11). Perry filed his first
amended complaint on June 21, 2017. (Doc. 12).
filed a motion for summary judgment on October 30, 2017.
(Doc. 17). In his response, filed on November 20, 2017, Perry
seemed to request that the Court remand a negligent
misrepresentation claim to Wayne County Circuit. His brief
began with the following:
STIPULATION AND WAIVER OF THEORIES OF
Plaintiff acknowledges Defendant's argument on
detrimental reliance, conversion, and fraud. Plaintiff also
acknowledges and stipulates that he cannot recover an amount
over $75, 000; he waives any claim for an amount over $75,
000. The amount in dispute is no longer sufficient for this
Court's jurisdiction. 28 U.S.C.A. § 1332(a). Now,
this Court may decline to supplemental jurisdiction over the
remaining state law claim for negligence or negligent
misrepresentation. See Bergeron v. Busch, 228
Mich.App. 618, 620, 579 N.W.2d 124 (1998); Pierson Sand
and Gravel, Inc. v Keeler Brass Co., 460 Mich. 372,
378-379, 596 N.W.2d 153 (1999). Plaintiff will bring a motion
to that effect.
(Doc. 18-1 at PageID 235). On December 4, 2017, Perry filed a
motion to remand, (Doc. 21), and a motion for leave to file a
second amended complaint, (Doc. 22). Chase filed response
briefs in opposition to both motions. (Doc. 26 and 27). The
Court denied Perry's motion to remand on January 11,
2018. (Doc. 30).