Nissan Motor Acceptance Corp. is entitled to more than $40 million from several New York dealerships, their operating managers and their guarantors after the parties defaulted on floorplan, mortgage and revolving lines of credit loans, and personal guarantees, a federal judge ruled last month.
U.S. District Judge Katherine Forrest found no grounds to reject or modify the request from Nissan's captive for $40,183,836 in breach-of-contract damages, attorney fees and court costs. Earlier, she ruled that no trial was necessary to determine liability because NMAC had "established its right to recover under the guaranties and underlying loans."
The decision involved Nissan of Manhattan, Infiniti of Manhattan, White Plains Nissan and Nissan of Mount Kisco as borrowers and Jaguar-Land Rover Manhattan as one of the guarantors. The stores no longer operate under the same franchisees.
The case was marked by what Forrest described as a "Byzantine series" of hearings, intermediate appeals, findings of contempt and more than 500 docket entries since January 2017. Earlier in the proceedings, the dealerships were sanctioned for disobeying orders to surrender vehicles to NMAC, including some that "were improperly plated and converted into demonstrator vehicles," court records show.
The stores went into default in 2016 by selling vehicles out of trust, according to court filings. When they failed to get back in trust, NMAC terminated their floorplan financing.