Vincent L. Sliwoski, OSB #105063 

vsliwoski@fwwlaw.com

Michelle M. Bertolino, OSB #912130

Farleigh Wada Witt

121 SW Morrison Street, Suite 600

Portland, Oregon 97204-3136

Telephone: (503) 228-6044

Facsimile: (503) 228-1741

Attorneys for Unitus Community Credit Union

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

TOWER INSURANCE COMPANY OF 

NEW YORK, a New York corporation,

Plaintiff,

v.

ROSE CITY AUTO GROUP, LLC, an 

Oregon limited liability company; LEONARD 

M. SHILEY, an individual; TERESA BYLE, an individual; LOGAN DRIEDRIC, an 

individual; JOANNA STONER, an 

individual; STEPHEN STONER, an 

individual; LOVE MARTINO, an individual; 

ANAN SRIVILAI, an individual; 

CAMERON JOHNSON, an individual; 

JONATHAN GILBERT, an individual; 

TINA HARRAL, an individual; ROY 

WIEGAND, an individual; NATHAN 

LANGER, an individual; KAREN BERSINE, 

an individual; MELISSA STEVENS, an 

individual; TONY EDWARDS, an individual; 

DEBBIE RECKTANGLE, an individual; 

RODNEY JENKINS, an individual; 

STEPHEN SCHANTIN, an individual; 

BRITTANY LAWRENCE, an individual; 

MATT REED, an individual; SHERIAL 

REED, an individual; RACHEL 

SCHANTIN, an individual; EZEKIAL 

HUNT, an individual; BOBBY HEAGLE, an 

individual; LANEY BLANKENSHIP, an 

individual; LONNEY FRANCIS, an 

individual; OREGON COMMUNITY 

Case No. 3:14-cv-00975-MO

DEFENDANT UNITUS COMMUNITY 

CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) 

MOTION REGARDING RESOLUTION 

OF CLAIMS AND FINAL 

DISBURSEMENT OF FUNDS

Page 1 of 5- UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) MOTION REGARDING 

RESOLUTION OF CLAIMS AND FINAL DISBURSEMENT OF 

FUNDS

Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 1 of 6
CREDIT UNION; an Oregon non-profit 

entity, TWINSTAR CREDIT UNION, a 

Washington nonprofit corporation; LOBEL 

FINANCIAL CORPORATION, a California 

corporation; THE EQUITABLE FINANCE 

COMPANY, an Oregon corporation; UNITUS 

COMMUNITY CREDIT UNION, an Oregon 

non-profit entity; WESTLAKE FLOORING 

COMPANY LLC, a California limited 

liability company; and DOES 1-30,

Defendants.

Defendant Unitus Community Credit Union (“UCCU”) offers the following 

response to Plaintiff’s ( and Westlake’s) Motion Regarding Resolution of Claims and Final 

Disbursement of Funds (“Motion”) and in support of its claim in the amount of $17,976.23 (Dkt 

#21) UCCU’s claim arises from fraud and violations of ORS 822.045(1) by Rose City Auto 

Group, LLC (“Rose City”). UCCU joins in the arguments made in Twinstar’s Response to 

Plaintiff’s (and Westlake’s) Motion Regarding Resolution of Claims and Final Disbursement of 

Funds, which asserts that Westlake Flooring Company LLC dba Westlake Flooring Services’ 

(“Westlake”) claim is invalid pursuant to ORS 822.045(2) and common law. Finally, UCCU 

accepts the $7,291.35 distribution proposed by Twinstar as recovery of UCCU’s pro rata share of 

the bond, in accordance with UCCU’s claim amount of $17,976.23. UCCU's response is 

supported by the Points and Authorities below, the Declaration of Allen Bump (“Bump Dec.”), 

the Declaration of Vincent Sliwoski (“Sliwoski Dec.”), and the records and files herein.

1. UCCU’s Claim.

UCCU’s claim arises from Rose City’s violations of ORS 822.045(j) and (k) and 

fraud. Specifically, on or about August 9, 2013, UCCU made a loan to its member, Leonard M. 

Shiley (“Shiley”), in the sum of $17,999 for the purchase of a 2008 Subaru Outback (“Vehicle”)

Page 2 of 5- UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) MOTION REGARDING 

RESOLUTION OF CLAIMS AND FINAL DISBURSEMENT OF 

FUNDS

Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 2 of 6
from Rose City. Dkt #21; Affidavit of Claim, Ex. 1 and Declaration of Allen Bump (Bump 

Declaration), Exhibit 1. As part of the loan, Shiley granted a security interest in the Vehicle to 

UCCU. Id. On or about August 9, 2013, UCCU issued Check No. 00-0007001101 (the “Check”) 

in the amount of $17,999 payable to Rose City. Dkt #21; Affidavit of Claim, Ex. 1, page 6. Upon 

negotiation of the Check, Rose City was required to provide the Vehicle title to UCCU, or 

otherwise perfect UCCU’s security interest in the Vehicle. However, Rose City failed to provide 

clear title for the Vehicle in violation of ORS 822.045(k). Instead, Rose City converted the loan 

funds paid to it by UCCU and ignored its statutory requirements. 

On information and belief, on or about October 15, 2013, Shiley traded-in the 

Vehicle to Rose City and/or placed the Vehicle back into Rose City’s inventory. Subsequently,

on information and belief, Rose City obtained financing from and/or granted a security interest in 

the Vehicle to Westlake Financial Services (“Westlake Financial”). A copy of the title listing 

Rose City as legal owner and Westlake Financial as lienholder/security interest holder is attached 

to the Declaration of Vincent Sliwoski, (Sliwoski Dec.) as Exhibit A. On further information, 

Westlake subsequently transferred to Westlake title to a third-party as a buyer in the ordinary 

course. Upon transfer of the Vehicle to Westlake Financial, Rose City was required to satisfy 

UCCU’s interest in the Vehicle within 15 days from the transfer as required by ORS 822.045(j), 

but failed to do so. Based on Rose City’s violations of ORS 822.045(j) and ORS 822.045(k), 

UCCU has a claim against the dealer bond pursuant to ORS 822.030.

Rose City’s actions above also constitute fraud. Upon receipt of the loan 

proceeds from UCCU and by accepting the same, Rose City knew that it was required to furnish 

clear title in the Vehicle to UCCU and represented it would deliver clear title. In addition, Rose 

City knew of UCCU’s loan and security interest in the Vehicle when it transferred title to or 

Page 3 of 5- UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) MOTION REGARDING 

RESOLUTION OF CLAIMS AND FINAL DISBURSEMENT OF 

FUNDS

Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 3 of 6
granted a security interest in the Vehicle to WestLake Financial. Rose City’s actions in failing to 

deliver clear title to the Vehicle to UCCU, use of loan proceeds from UCCU for its use, and its 

failure to satisfy UCCU’s prior loan and security interest when it obtained subsequent financing 

from Westlake Financial, constitutes fraud. 

UCCU has suffered damages due to Rose City’s actions because UCCU cannot

secure its interest in the Vehicle for which it loaned money or enforce its rights under the 

security agreement. In addition, UCCU, like Twinstar, likely cannot recover any insurance on 

the Vehicle. See e.g. Chamberlain v. Jim Fisher Motors, Inc., 282 Or. 229, 231, 578 P.2d 1225, 

1226 (1978) (insurer to pay claim for theft of vehicle because of claimant’s inability to produce 

title to vehicle).

ORS 822.030(2) provides that UCCU has a claim against Rose City’s bond if it 

suffered damage by reason of Rose City’s fraud or violations of vehicle code. The statute is 

remedial for the protection of persons injured by a bonded party. For this reason, it should be 

liberally construed to accomplish its purpose. Gen. Elect. Credit Corp. v. United Pac. Ins. Co., 

80 Or. App. 129, 135, 722 P.2d 15, 18 (1986). Rose City’s failure to furnish clear title to UCCU 

is fraud and a violation of ORS 822.045(j) and (k). UCCU has been damaged by Rose City in 

the amount of $18,518.17, the updated current payoff amount on the loan it made for the 

Vehicle. 

2. Westlake is not Entitled to Recover on the Bond.

UCCU joins in the arguments made by Twinstar in support of its arguments that 

Westlake is not entitled to recover on the bond.

3. Proposed Distribution.

UCCU joins in the distributions proposed by Twinstar to all parties.

Page 4 of 5- UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) MOTION REGARDING 

RESOLUTION OF CLAIMS AND FINAL DISBURSEMENT OF 

FUNDS

Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 4 of 6
CONCLUSION

For the foregoing reasons, UCCU respectfully requests that the Court grant it its 

pro rata share of the bond in the amount of $7,291.35, in accordance with UCCU’s claim in the

amount of $17,976.23.

DATED this 24th day of March, 2015

FARLEIGH WADA WITT

By: /s/ Vincent Sliwoski

Vincent L. Sliwoski, OSB #105063

(503) 228-6044

vsliwoski@fwwlaw.com

Attorneys for Unitus Community Credit 

Union

Page 5 of 5- UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO 

PLAINTIFF’S (AND WESTLAKE’S) MOTION REGARDING 

RESOLUTION OF CLAIMS AND FINAL DISBURSEMENT OF 

FUNDS

Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 5 of 6
CERTIFICATE OF SERVICE

I hereby certify that on March 24, 2015, I electronically filed the foregoing 

UNITUS COMMUNITY CREDIT UNION’S RESPONSE TO PLAINTIFF’S (AND 

WESTLAKE’S) MOTION REGARDING RESOLUTION OF CLAIMS AND FINAL 

DISBURSEMENT OF FUNDS, DECLARATION OF ALLEN BUMP IN SUPPORT OF 

UNITUS COMMUNITY CREDIT UNION’S RESPONSE and DECLARATION OF 

VINCENT L. SLIWOSKI IN SUPPORT OF UNITUS COMMUNITY CREDIT UNION’S 

RESPONSE with the Clerk of the Court using the CM/ECF system which will send notification 

of such filing to the following: 

Lawrence A. Wagner

Stewart Sokol & Gray LLC

2300 SW First Avenue, Suite 200

Portland, OR 97201-5047

lwagner@lawssg.com

 Of Attorneys for Plaintiff

Thomas M. Orr

Hutchinson Cox Coons et al.

P.O. Box 10886

Eugene, OR 97440

torr@eugene-law.com

 Of Attorneys for Oregon Community 

 Credit Union

James P. Laurick

Kilmer, Voorhees & Laurick, P.C. 

732 NW 19th Ave

Portland, OR 97209

jlaurick@kilmerlaw.com

 Of Attorneys for Twinstar Credit Union

Daniel L. Duyck

Whipple & Duyck, P.C.

1500 SW First Ave Suite 1170

Portland, OR 97201

dduyck@whippleduyck.com

 Of Attorneys for Westlake Flooring

 Company LLC

and I hereby certify that I have mailed by United States Postal Service the document to the 

following non-CM/ECF participants: Joanna Stoner, Stephen Stoner, P.O. Box 381, Onalaska, 

WA 98570.

FARLEIGH WADA WITT

By: /s/ Vincent L. Sliwoski, OSB #105063

Attorneys for Defendant Unitus 

Community Credit Union

 121 SW Morrison St., Suite 600

 Portland, Oregon 97204

(503) 228-6044 (phone)

(503) 228-1741 (fax)

vsliwoski@fwwlaw.com

Page 1 – CERTIFICATE OF SERVICE

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Case 3:14-cv-00975-MO Document 67 Filed 03/24/15 Page 6 of 6