Mazur v. ZMC Auto Sales, Inc.

CourtDistrict Court, N.D. Indiana
DecidedAugust 18, 2022
Docket2:19-cv-00333
StatusUnknown

This text of Mazur v. ZMC Auto Sales, Inc. (Mazur v. ZMC Auto Sales, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mazur v. ZMC Auto Sales, Inc., (N.D. Ind. 2022).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION

MARIUSZ MAZUR,

Plaintiff,

v. CAUSE NO.: 2:19-CV-333-TLS

ZMC AUTO SALES, INC. and COPART, INC.,

Defendants. ___________________________________

ZMC AUTO SALES,

Counter Claimant,

v.

Counter Defendant. __________________________________

COPART, INC.,

Cross Plaintiff,

Cross Defendant.

OPINION AND ORDER This case is, at its heart, a dispute over approximately $2,000. The Plaintiff Mariusz Mazur purchased a Porsche sports car on December 15, 2016, through an online auction run by the Defendant Copart, Inc., using the account of the Defendant ZMC Auto Sales, Inc. After the purchase, the Plaintiff took possession of the Porsche, but Copart delivered the title to ZMC. The Plaintiff alleges that Copart improperly transferred title to ZMC and that ZMC, through its owner Zbigniew Czyzewski, improperly withheld the title from the Plaintiff. FINDINGS OF FACT Prior to the bench trial, no undisputed material facts were established. See Pre-Trial

Order ¶¶ G, H, ECF No. 75. At trial, the Court heard testimony from the following witnesses:  Sherri Van Hook, Field Examiner for the Indiana Secretary of State, Auto Dealer Services Division;  Scott Conner, Deputy Director of the Indiana Secretary of State, Auto Dealer Services Division;  Mark Flesher, Account Manager for Copart Auto Auction;1  Mariusz Mazur, the Plaintiff;  Alfred Kopacz, Owner of Best Way Auto Care;  Marc Donaldson, Attorney and former counsel for ZMC Auto Sales;  Zbigniew Czyzewski, Owner of ZMC Auto Sales;  Michael Buckman, Automotive Analyst for the Indiana Attorney General’s Office;  Beata Mazur, the Plaintiff’s wife. The following facts are based on admitted exhibits and from testimony elicited at trial. The Plaintiff purchased automobiles through Copart’s online auctions by using ZMC’s online account. Trial Tr. vol. 2, 388–89, ECF No. 84. The Plaintiff obtained access to ZMC’s account through Alfred Kopacz, the owner of Best Way Auto Care, an automotive body shop. Id.

1 Flesher was the party representative, but he had no personal knowledge of the automobile or this transaction. See Trial Tr. vol. 1, 109–110, ECF No. 83. He purchased a Nissan on November 10, 2016, a Maserati on December 8, 2016, a Dodge Caravan on January 10, 2017, and the Porsche—which is at the center of this dispute—on December 15, 2016. Id. at 284–85. ZMC allowed its online account to be used by some customers of Best Way Auto to purchase cars from Copart’s auctions. See id. at 388–89. After a car is purchased, ZMC’s

practice was to only give the title of a motor vehicle to the purchaser when the purchaser gave ZMC the money to pay the state sales tax on the car. See Trial Tr. vol. 3, 601–02, ECF No. 85. As for Copart, its representative explained that Copart will transfer to its member, in this case ZMC, the title to the car. See Trial Tr. vol. 1, 139–40, ECF No. 83. Except in limited circumstances, Copart does not apply for or issue titles. Id. at 118, 139–40. In this case, the Plaintiff paid for the Porsche with a check in his name made payable to Copart. Id. at 116. Copart receives money for the automobile purchased at auction, then it issues a check to the seller. See id. at 134. The bill of sale for this purchase showed Safeco Insurance, not Copart, as the seller and ZMC Auto, not the Plaintiff, as the buyer. Id. at 148–49; Sales

Receipt/Bill of Sale, Def. Ex. B. That bill of sale recorded fees that Copart charged, such as the buyer fee, secure fund discount, virtual bid fee, gate pass fee, and mailing fee. Tr. vol. 1, 163, 179–80; Def. Ex. B. The Plaintiff received the Porsche from Copart, which the Plaintiff then had repaired by Best Way Auto. Tr. vol. 2, 325, 328. After the Porsche was repaired, ZMC obtained a rebuild title. Tr. vol. 3, 540–41. The following facts were introduced about the dispute over the Porsche’s title:  According to Van Hook, under Indiana law, a dealer must provide the title to a consumer within 31 days from the date of purchase. Tr. vol. 1, 13.  Van Hook likewise testified that the dealer is required to collect sales tax. Id. at 66.  She testified that if the customer fails to pay the sales tax, the contract is void. Id. at 15.  In a typical transaction, the consumer would receive the vehicle after all agreed payments have been made to trigger the dealer’s obligation to provide the title. See id. at 93–94.  Czyzewski testified that ZMC would not give the title to the purchaser until the sales tax is paid. See Tr. vol. 3, 601.  The Plaintiff and his wife were advised that sales tax must be paid to receive title as well. Id. at 669.  The dealer is responsible for the sales tax, and there are penalties, including criminal penalties in some circumstances, for failing to collect the sales tax. Tr. vol. 2, 443–44.  Indiana allows, though does not mandate, that a dealer can issue the title and list itself as a lienholder should the purchaser not pay the sales tax. Tr. vol. 1, 15–16.  The Plaintiff never paid the sales tax to ZMC. Tr. vol. 2, 333.  The Plaintiff never signed the paperwork necessary to receive the title. Tr. vol. 3, 600–01.  ZMC did not give the Plaintiff the title to the Porsche. Tr. vol. 2, 461.  In 2017, the Plaintiff attempted unsuccessfully to sell the Porsche through ZMC and Copart. See id. at 306–07.  The Plaintiff surrendered the car to ZMC. Tr. vol. 1, 230.  The Porsche was ultimately sold at auction, not through Copart, while the litigation was pending, Tr. vol. 3, 525.  In addition to this litigation, the Plaintiff also filed a complaint online with the Indiana Secretary of State Dealer Services Division in February of 2022. Tr. vol. 1, 52–53.  That complaint’s resolution is pending the outcome of this litigation. Id. at 106. The parties dispute the reasons for ZMC holding onto the title instead of transferring it to the Plaintiff. The Plaintiff testified that he was willing to pay the sales tax and that he “didn’t have any problems with paying the taxes.” Tr. vol. 1, 221–22. The Plaintiff understood that he had to pay the sales tax to get the title. Tr. vol. 2, 301. The Plaintiff testified that he tried to call Czyzewski “every day” and that he went to ZMC’s office three or four times. Tr. vol. 1, 205–06.

The Plaintiff accused Czyzewski of disappearing “for weeks, months sometimes.” Id. at 222. Due to the issues with ZMC, the Plaintiff testified he only decided to sell the Porsche so that he could get his money back. Id. at 235–36. Czyzewski, the owner and representative of ZMC, testified that no deal was finalized because the Plaintiff did not come to ZMC’s office to complete the paperwork. Tr. vol. 2, 454. Czyzewski prepared a bill of sale for the Porsche in 2019 that he dated to March 9, 2017.2 Id. at 454; Sales Paperwork – Porsche, Def. Ex. E. Czyzewski testified that he had the “papers ready” before then, and that he did not prepare the documents earlier because the Plaintiff was trying to “flip” the Porsche. Tr. vol. 2, 456–457. That is, he believed that the Plaintiff intended to sell the

cars from the start, rather than keep them for personal use. Id. at 457. He was also concerned about the possibility that the Plaintiff would ask him to modify the title after he issued it, which allegedly occurred with one of the other automobile transactions between the parties. Tr. vol. 3, 544. Czyzewski also testified that he talked over the phone with the Plaintiff about paying sales tax, and that the Plaintiff knew it was necessary based on earlier calls. Id. at 541–42. For those reasons, he did not reach out to the Plaintiff to ask him to pay the sales tax and complete the transfer of the title. Id.

2 The March 2017 date appears to be based on Kopacz finishing the repairs on the Porsche in March of 2017. See Tr. vol. 2, 307.

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Mazur v. ZMC Auto Sales, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mazur-v-zmc-auto-sales-inc-innd-2022.