Stellantis Financial Services is seeking nearly $3.9 million from a Georgia dealership and its owner, alleging the store violated the terms of its floorplan financing agreement before closing.
The lawsuit targets Joe Maus Chrysler-Dodge-Jeep-Ram in Dublin, Ga., and alleges multiple violations of the dealership's financing agreement. One of the central allegations involves vehicles being sold “out of trust” — meaning inventory financed by the lender was allegedly sold without the corresponding loan proceeds being used to pay down the lender's interest in those vehicles.
The lawsuit also alleges other breaches of the dealership's financing arrangement, including issues involving accounts receivable. The case was filed in federal court in August and names the dealership and other defendants.
The dealership has already closed, adding another layer to the dispute between the dealer and its floorplan lender. The case now puts the focus on how much of the lender's collateral and outstanding financing obligations can be recovered.
The case highlights the financial disputes that can follow a dealership closure, particularly when a floorplan lender alleges that financed inventory was sold without the corresponding debt being paid.
The allegations have not been proven in court, and the defendants will have an opportunity to respond to the claims.
