Woytenko v. Ochoa

CourtDistrict Court, D. Arizona
DecidedFebruary 26, 2021
Docket4:19-cv-00413
StatusUnknown

This text of Woytenko v. Ochoa (Woytenko v. Ochoa) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woytenko v. Ochoa, (D. Ariz. 2021).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Alexander W Woytenko, et al., No. CV-19-00413-TUC-DCB

10 Plaintiffs, ORDER

11 v.

12 Jose Ricardo Lopez Ochoa, et al.,

13 Defendants. 14 15 Holding 16 The Court grants the Rule 41(a)(2) Motion for Voluntary Dismissal, with prejudice. 17 Procedural Posture, Discussion and Rationale 18 On August 20, 2019, Plaintiffs filed the Complaint alleging a federal cause of action 19 under the federal Motor Vehicle Information and Costs Savings Act (FOA), also known as 20 the federal Odometer Act, 49 U.S.C. § 32701, et seq. The Odometer Act prevents odometer 21 tampering and includes other general safeguards for the protection of consumers, 49 U.S.C. 22 § 32701, with five major substantive provisions. It establishes procedures to follow when 23 a motor vehicle repair results in a change in the odometer reading. It requires written 24 certifications be made each time a vehicle is transferred. The transferor must disclose the 25 odometer reading and whether the odometer reading is accurate, has exceeded its 26 mechanical limits, or is inaccurate. It prohibits false statements in conjunction with the 27 disclosures and prohibits parties from conspiring to violate any of the Act’s provisions. It 28 prevents transfers made in violation of the statutory provisions with the intent to defraud a 1 buyer. 2 The regulatory transfer provisions are incorporated into title documents which 3 require “each transferor to disclose the mileage in writing on the title” or “on the document 4 being used to reassign the title,” and the transferor must certify that “to the best of his 5 knowledge the odometer reading reflects the actual mileage.” 49 U.S.C. § 32701(b); 49 6 C.F.R. § 580.5 (c), (e). The Act’s disclosure requirements are central to the Act’s 7 effectiveness. Even if a transferor has not tampered with the odometer, a transferor may 8 violate the Act by violating the disclosure requirements. Ryan v. Edwards, 592 F.2d 756, 9 760 n.4 (4th Cir. 1979). The disclosure requirements create a paper trail of the odometer 10 reading at each transfer, facilitating investigation of odometer fraud. 11 Courts have found that plaintiffs have standing to sue other transferors who are in 12 the chain of ownership and who have given a false odometer statement, even if there was 13 no false statement made directly to the plaintiff by those transferors. See Carrasco v. Fiore 14 Enterprises, 985 F.Supp. 931, 939 (D. Ariz. 1997) (“if a defrauded ultimate purchaser 15 could sue only a violator of the Act who directly transferred the vehicle to him, each owner 16 in the chain of title who discovered the violation and then perpetuated the fraud by selling 17 the vehicle without disclosing the violation would be insulated from liability merely 18 because the vehicle was sold many times.”) 19 The Plaintiffs allege that on April 18, 2019, they bought a Ram truck from 20 Defendant Ochoa, which he fraudulently represented had only 118,600 actual miles on it. 21 The front of the Ram truck title reflected it was a B title, which means that the milage on 22 the vehicle is in excess of the odometer’s mechanical limits of 999,999 miles. Defendant 23 Ochoa did not, however, provide the corresponding transfer certification on the back of the 24 title that the millage exceeded the odometer’s mechanical limit. Instead, he certified these 25 were actual miles. (Complaint (Doc. 1-2) at 17.) 26 According to admissions made by Defendant Ochoa in an unsworn affidavit: 27 Defendant Johnson, acting as owner and agent for Defendants Buster Wholesale 28 Auto/Jeff’s Auto, bought the Ram truck from Jim Click as a favor for Ochoa, who paid 1 him for it in two installments. Ochoa knew that the odometer had not rolled over because 2 he had mechanical work done on the vehicle which caused the odometer to be rolled back 3 to reflect an inaccurate millage reading. He sold the truck to Defendant Arballo, and when 4 completing the certification of milage statements on the title transfer documents to Arballo, 5 which contained Johnson’s 271,801 odometer certification, Ochoa checked the wrong box 6 reflecting the odometer had rolled over, not that it had been changed to 118,600 miles. 7 Later Ochoa sold the truck to Woytenko and certified that the odometer reflected actual 8 milage. The Plaintiffs allege that Ochoa advertised the Ram truck as having, and they 9 bought it believing it had, actual miles on the odometer. (Motion to Set Aside Default 10 (MSA), Ex. C (Doc. 11-1) at 13); (Complaint (Doc. 1-2) at 2, 5.) 11 The Plaintiffs sued all the sellers in the chain of title going back to the original 12 March 5, 2018, sale by Jim Click to Buster Wholesale Auto,1 which correctly certified the 13 Ram truck had 271,801 actual miles on the odometer. (Complaint (Doc. 1-2) at 2.) The 14 transfer certifications on the back of that title reflected a dealer transfer by Defendant 15 Johnson, acting for Jeff’s Auto, selling the vehicle with 271,801 on the odometer to 16 Defendant Arballo on June 13, 2018, and these were miles in excess of the odometer’s 17 mechanical limit. Id. This certification of course makes no sense because by then the 18 odometer had been rolled back according to Ochoa’s admission. (Complaint (Doc. 1-2) at 19 5.) 20 After the June 13, 2018, transfer to Arballo, the title for the Ram truck always 21 reflected it was a B title, meaning the odometer had rolled over at 999,999 miles. This was 22 not true. The odometer was rolled back. The issue in this case concerns the representations 23 made by various Defendants in the odometer certifications which caused Plaintiffs’ to 24 believe they were purchasing a vehicle with 129,077 actual miles on the odometer. 25 Even though the transfer to Arballo reflected 271,800 miles in excess of the 26 odometer’s mechanical limitation, Arballo sold the truck to Defendant Sotos on July 11, 27 2018 and certified the odometer had 118,600 actual miles. (Complaint (Doc. 1-2) at 5.) The 28 1 Defendant S.W. Industries is doing business as Jeff’s Auto. 1 Court assumes they discovered the Ram truck’s B title because the record reflects that 2 Defendant Ochoa bought the truck back from the Sotos and on August 15, 2018. They 3 certified it had 118,600 miles in excess of the odometer’s mechanical limits. (Complaint 4 (Doc. 1-2) at 12.) Ochoa drove the truck for a short time, then sold it to the Plaintiffs 5 Woytenko on April 18, 2019, making the certification, at issue here, that it had 129,077 6 actual miles on the odometer. (Complaint (Doc. 1-2) at 17.) 7 On September 25, 2019, the Clerk of the Court entered default against Buster 8 Wholesale Auto/Jeff’s Auto after they were served and failed to Answer. In October 2019, 9 they filed a Motion to Set Aside the default, which the Court granted in part because these 10 Defendants posited a meritorious defense by submitting documents, signed by Johnson, 11 acting on behalf of Jeff’s Auto, that transferred the Ram truck to Ochoa on March 22, 2018, 12 and he certified that there were 271,801 miles on the odometer, the same number certified 13 by Jim Click as actual miles. Defendants also submitted the unsworn, notarized admission 14 by Defendant Ochoa. 15 The remaining Defendants, including Defendant Ochoa, have been dismissed after 16 Plaintiffs were unsuccessful, even after an extension of time, to serve them.

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Woytenko v. Ochoa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woytenko-v-ochoa-azd-2021.