NMTL News:
ALBUQUERQUE — In a significant win for New Mexicans’ constitutional rights to access justice and have their day in court, the New Mexico Court of Appeals has ruled in favor of Barbra Neiswender in her suit against Reliable Chevrolet’s appeal of an order refusing to force her case out of court and into private arbitration. The appellate decision affirms the lower court’s ruling and paves the way for accountability regarding predatory auto dealership financing and unauthorized repossessions.
In August 2021, Neiswender, a dedicated community volunteer, educator, disabled crash survivor, and Ordained Health Minister, sought to purchase a $9,000 used Dodge Journey from Reliable Chevrolet in Albuquerque, putting down $1,000 in cash. Although she arrived with approved financing from her credit union, Reliable Chevrolet convinced her to let them run her credit report a single time to secure a better rate through Capital One.
“Justice for all New Mexicans matters,” said New Mexico Trial Lawyer Jamison Shekter. “As a trial lawyer I fight for people’s rights, and I was honored to do so for Ms. Neiswender. “This decision affirms that New Mexicans deserve honesty, transparency, and basic human dignity. Ms. Neiswender now has the right to present her claims in a courtroom, and a New Mexico jury will decide whether auto dealerships can misrepresent loan approvals, conceal essential financing facts, and resort to intimidation or dangerous repossession tactics when their own back-office processes fail.”
Reliable Chevrolet informed Neiswender that financing was finalized and presented her with a completed contract, which she signed under the reasonable expectation that her first payment would be due in October 2021. In reality, financing was never secured.
Without communicating the issue to Neiswender, the dealership subsequently made additional unauthorized credit inquiries. Detecting these unexpected credit alerts and fearing identity theft, Neiswender froze her credit. Rather than contacting her to explain the situation, Reliable Chevrolet used a secret GPS tracker installed on the vehicle to locate and repossess the car while she was shopping for groceries and medical supplies at Costco.
The incident escalated when an agent attempted to tow the vehicle when Neiswender came out to her car, leading to a harrowing vehicular pursuit down Central Avenue until Neiswender was able to seek protection from nearby police officers.
The appellate court’s favorable ruling addresses critical issues in Reliable Chevrolet’s arbitration scheme, which it makes every customer sign, including whether Reliable Chevrolet can make the customer liable for Reliable Chevrolet’s attorney fees, and limiting the customer’s damages, without giving the customer the same protection.
Added New Mexico Trial Lawyers Association President Nick Mattison, “This is a win for all New Mexicans who are increasingly forced to give up their constitutional right to trial by jury when businesses hide non-negotiable ‘arbitration clauses’ in consumer contracts. Instead, the case must be decided in a private arbitration that is often slanted in favor of the business. The Court recognized that in many cases, forced arbitration is not really a fair agreement to decide a dispute in a different forum. Instead, businesses misuse these agreements to take away consumers’ rights, so that the business cannot be held accountable when it breaks the law.”
“When it comes to fighting for New Mexicans, it’s the trial lawyers that are on the front lines because justice matters,” Shekter added.
