Jerry Steelman v. Ford Motor Credit

The appellant, Jerry Steelman (Steelman), filed suit against the appellee, Ford Motor Credit Company (Ford), to recover money damages in the amount of $116,502.20 plus prejudgment interest. Steelman alleged a breach of contract and, in the alternative, relied upon the theory of promissory estoppel. 1 The trial court directed a verdict in favor of Ford at the close of all proof. The issue on appeal is whether the trial court erred in its determination. In 1989, Jim Hamby (Hamby) owned three automotive dealerships: Hamby Motor Company, Hamby Pontiac-GMC Truck, and Hamby Ford. Each dealership operated under a wholesale financing and security agreement with Ford, commonly referred to as ""floor plan financing."" A cross-guarantee agreement existed between Hamby Ford and Hamby Pontiac. After the dealerships began exhibiting financial difficulties, including issuing checks to Ford returned for insufficient funds, Ford suspended the credit lines of all three dealerships. Thereafter, Steelman began negotiating with Hamby to purchase an interest in the Hamby Ford dealership. On September 20, 1989, Steelman paid $90,000 to Ford and Hamby Ford conveyed 50% of its outstanding stock to Steelman. The circumstances under which the payment to Ford was made are at issue here.