FORD MOTOR CREDIT COMPANY, LLC Appellee Appellant

[Pages:42]No. 08-20583 _____________________________

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT _____________________________

In The Matter Of: REBECCA ANN DALE, also known as, Dale Enterprises, also known as, Becky Dale, Debtor _____________________________

FORD MOTOR CREDIT COMPANY, LLC

Appellee

v.

REBECCA ANN DALE Appellant

______________________________

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS, HOUSTON DIVISION

HON. GRAY H. MILLER, UNITED STATES DISTRICT JUDGE USDC No. 4:07-CV-3176 Bankr. No. H-07-32451

______________________________

AMICUS CURIAE BRIEF OF AMERICAN FINANCIAL SERVICES ASSOCIATION AND NATIONAL AUTOMOBILE DEALERS ASSOCIATION

IN SUPPORT OF APPELLEE FORD MOTOR CREDIT COMPANY SUPPORTING AFFIRMANCE OF THE DISTRICT COURT _______________________________

Earl F. Sundmaker, Lead Counsel #24226 (LA) Douglas L. Grundmeyer #6362 (LA) Jonathan C. McCall #9227 (LA) Loretta O. Hoskins #30558 (LA) CHAFFE McCALL, L.L.P. 2300 Energy Centre, 1100 Poydras Street New Orleans, Louisiana 70163-2300 Telephone: 504-585-7000 Facsimile: 504-585-7075

James J. White #P22255 (MI) 625 South State Street Ann Arbor, Michigan 48109 Telephone: 734-764-9325 Facsimile: 734-647-7349 Attorneys for Amici Curiae, American Financial Services Association and National Automobile Dealers Association

SUPPLEMENTAL STATEMENT OF INTERESTED PARTIES In compliance with 5th Cir. R. 29.2 and 28.2.1, amici curiae, American Financial Services Association and National Automobile Dealers Association, provide this supplemental statement of interested persons in order to fully disclose all those with an interest in the amicus brief. (1) Ford Motor Credit Company, LLC v. Rebecca Ann Dale, United States Court of Appeals for the Fifth Circuit No. 08-20583. (2) The undersigned counsel of record certifies that the following supplemental list of persons and entities as described in the fourth sentence of 5th Cir. R. 28.2.1 have an interest in the outcome of this case. These representations are made in order that the judges of this Court may evaluate possible disqualification or recusal. Chaffe McCall, L.L.P. 1100 Poydras Street, Ste. 2300 New Orleans, LA 70163-2300 Grundmeyer, Douglas L. Hoskins, Loretta O. McCall, Jonathan C. Sundmaker, Earl F. White, James J. Amicus curiae American Financial Services Association is a trade association that has no parent company, and no publicly held company holds 10% or more of an

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interest in the American Financial Services Association. Amicus curiae National Automobile Dealers Association that has no parent company, and no publicly held company holds 10% or more of an interest in the National Automobile Dealers Association.

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TABLE OF CONTENTS SUPPLEMENTAL STATEMENT OF INTERESTED PARTIES ........................... i TABLE OF CONTENTS......................................................................................... iii TABLE OF AUTHORITIES .....................................................................................v IDENTITY AND INTEREST OF AMICI CURIAE AND SOURCE OF AUTHORITY TO FILE.....................................................................1

I. Identity and Interest of Amicus American Financial Services Association............................................................................1 Identity and Interest of Amicus National Automobile Dealers Association.............................................................................2

II. Source of Authority to File Amicus Curiae Brief .................................3 STATEMENT OF THE ISSUE.................................................................................3 SUMMARY OF ARGUMENT .................................................................................3 ARGUMENT AND AUTHORITIES........................................................................7

I. The Language of the Statute and the Congressional Purpose Favor Ford Credit ................................................................................7 A. Congress's Purpose.....................................................................7 B. Congress's Language ................................................................10 C. Both The Language and Congress's Purpose Support a Reading Favorable to Ford Credit ..........................................12 1. Excluding Certain Secured Creditors ..................................13 2. "Purchase-Money Security Interest" Is Broader Than "Principal Balance".............................................................14

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II. The Definitions in The Federal Truth in Lending Law And Regulations Support Ford Credit...........................................................................17

III. State Law, Commercial Practice, and Public Policy Affirm Ford Credit's Position in this Case....................................................19 A. The Uniform Commercial Code ...............................................19 B. The Texas Motor Vehicle Installment Sales Act ......................23 C. Commercial Practice and Public Policy....................................26

CONCLUSION ........................................................................................................27 CERTIFICATE OF COMPLIANCE .......................................................................29 DIGITAL SUBMISSION CERTIFICATE..............................................................30 CERTIFICATE OF SERVICE ................................................................................31

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TABLE OF AUTHORITIES

CASES Fuller v. Norton, 86 F.3d 1016 (10th Cir.1996) ......................................................21 GMAC v. Horne, 390 B.R. 191 (E.D. Va. 2008) .......................................................5 GMAC v. Peaslee, 373 B.R. 252 (W.D. N.Y. 2007)................................... 16, 21, 22 Graupner v. Nuvell Credit Corp., 537 F.3d 1295 (11th Cir. 2008).............. 5, 22, 23 Gustafson v. Alloyd Co., 513 U.S. 561 (1995).........................................................21 In re Long, 519 F.3d 288 (6th Cir. 2008) ................................................................16 In re Vinson, 391 B.R. 754 (Bankr. D. S.C. 2008) ....................................................5 Nuvell Credit Co., LLC v. Muldrew, 396 B.R. 915, 2008 U.S. Dist. LEXIS 77752 (E.D. Mich. 2008) ....................................................................................................23 Quality Tooling v. United States, 47 F.3d 1569 (Fed. Cir. 1995)............................17 Salaymeh v. Plaza Centro LLC (In re Mohyadein), 361 B.R. 822 (Bankr. S.D. Tex. 2007)..........................................................................................21 Smith v. Midland Brake, Inc., 180 F.3d 1154 (10th Cir. 1999) ...............................21 Spradlin v. Jim Walter Homes, Inc., 34 S.W.3d 578 (Tex. 2000) ...........................21 TRW, Inc. v. Andrews, 534 U.S. 19 (2001)..............................................................21 Yates Ford, Inc. v. Ramirez, 692 S.W.2d 51 (Tex. 1985)........................................25 STATUTES 11 U.S.C. ? 1325(a) ................................................................................... 1, 3, 9, 12

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11 U.S.C. ? 522(f)(1)(B)..........................................................................................13 12 C.F.R. ? 226 ........................................................................................................17 12 C.F.R. ? 226.18(b) ..............................................................................................19 15 U.S.C. ? 1601, et seq...........................................................................................17 16 C.F.R. ? 444.2(a)(4) ............................................................................................13 7 Tex. Admin. Code ? 84.803(d) (2008) .................................................................25 Tex. Bus. & Comm. Code Ann. ? 1.103 (Vernon 2002) .........................................27 Tex. Bus. & Comm. Code Ann. ? 9.103(a)(1) (Vernon 2002)................................20 Tex. Bus. & Comm. Code Ann. ? 9.103(a)(2) (Vernon 2002)................................20 Tex. Bus. & Comm. Code Ann. ? 9.103(b)(1) (Vernon 2002)................................20 Tex. Fin. Code Ann. ? 348.006 (Vernon 1998 & Supp. 2003) ........................ 24, 25 Tex. Fin. Code Ann. ? 348.009 (Vernon 1998 & Supp. 2003) ...............................25 Tex. Fin. Code Ann. ?? 348.001-413 (Vernon 1998 & Supp. 2003) ......................24 Tex. Rev. Civ. Stat. Ann. Art. 5069-7.01. ...............................................................25

OTHER AUTHORITIES Bankruptcy Abuse Prevention and Consumer Protection Act of 2001: Hearings Before

the Committee on the Judiciary, House of Representatives, 107th Cong. 371-72 (2001) ...................................................................................................................10 FDIC Supervisory Insights, The Changing Landscape of Indirect Automobile Lending, June 23, 2005........................................................................................15 H.R. 3150, 105th Cong. ? 128 (1998) .....................................................................10

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