Bank Told To Release Auto Titles Order Allows Utter Customers To Obtain License Plates, Tags

In a victory for Spokane’s troubled Utter Cadillac/Infiniti dealership, the U.S. Bankruptcy Court Thursday granted a release of liens to beleaguered consumers who have been unable to secure titles to their newly purchased vehicles.

During a telephone conference, Judge John Klobucher decided that Farmers & Merchants Bank must release titles on 18 used cars, allowing consumers who bought the cars earlier this year to get permanent license plates and tags.

“We’re feeling very relieved. We’ve been pushing for this, and it’s nice that people can get the plates and titles that they deserve,” said Rick Utter, president of Utter Motor Co. and Utter Infiniti.

The Utter dealership, which has been a downtown hallmark for 54 years, filed for Chapter 11 bankruptcy protection April 14. Within days, car buyers began complaining to the state that they never received the titles, tags or permanent license plates for used cars they purchased while Utter was under the management of Allan Holms.

Holms, who operated a string of dealerships throughout Montana and North Dakota, lives in Spokane but no longer works for Utter.

Utter attorneys filed a motion to release the liens almost three weeks ago. But the motion was immediately met with objections by Farmers & Merchants and Holms Motors Inc., two of Utter’s major creditors.

After the hearing Thursday, Utter representatives provided proof of purchase statements on behalf of car buyers to Farmers & Merchants, which financed the vehicles for Utter. Utter representatives say consumers may face a short delay because the attorney for Farmers & Merchants is in Seattle and cannot issue titles to Utter until his return.

Utter hopes to deliver the titles to the Department of Licensing as soon as the bank releases them so consumers - who are driving with expired or extended temporary plates - can get permanent plates as soon as possible.

“We’re the ones trying to get their titles for them, so of course we’re going to cooperate. We’ll give them (the bank and the Department of Licensing) all the information they need,” Utter said. He added that the dealership already has compiled information folders for each titleless consumer.

A case worker at the Department of Licensing will mail customers their plates and tags, then forward the titles to the owners who paid cash or to the appropriate lending institution for those who financed their vehicles, Utter said.

In a related issue, Utter attorney Bruce Madeiros said the sale of the Utter dealership assets to Barton Oldsmobile should be finalized by the end of May.

The Barton dealership - which already has franchise rights to sell Oldsmobile, Saturn and Jeep/Eagle new cars - outbid rival dealers in a bankruptcy auction two weeks ago.