Fountain Equipment Finance, LLC has filed a lawsuit against Elk Grove Truck Sales, Inc., accusing the company of failing to provide clear titles for two trucks after receiving payment. The complaint was filed in the United States District Court for the Eastern District of Tennessee on June 4, 2024. Fountain Equipment Finance alleges that Elk Grove Truck Sales has not fulfilled its obligation to deliver clear titles for two Peterbilt 579 tractor trucks, despite being paid $399,340.
According to the complaint, Fountain Equipment Finance is a Tennessee-based company specializing in financing heavy equipment and vehicles. In February 2023, Red Star Trans, Inc. approached Fountain for financing to purchase two used trucks from Elk Grove Truck Sales. After approving the financing arrangement, Fountain wired the payment to Elk Grove on March 8, 2023. However, despite numerous requests and demands from Fountain since then, Elk Grove has failed to provide the necessary titles for the trucks.
The plaintiff argues that Elk Grove's refusal to deliver clear titles is "arbitrary and capricious," jeopardizing Fountain's financial interest in the financed assets. The trucks are described as depreciating assets, and without clear titles, Fountain's investment is at risk. Furthermore, Fountain claims it would not have proceeded with financing had it known that Elk Grove would withhold the titles.
Fountain Equipment Finance is seeking a judgment against Elk Grove Truck Sales amounting to $399,340 plus attorney fees, costs, and prejudgment interest. Alternatively, they request an order compelling Elk Grove to provide clear titles for the trucks while also covering reasonable attorney fees and costs incurred by Fountain.
Representing Fountain Equipment Finance in this case is attorney Lynn Tarpy from Knoxville, Tennessee. The case is identified under Case ID: 1:25-cv-02985.