Back in 2022, Auto Dealership Partners LLC – led by Larry Crain Jr. and Heath Campbell – sued Ford Motor Company for what it claimed was the improper use of the automaker’s right of first refusal over a dealership transaction that it claimed unfairly blocked the group’s purchase of a Ford dealership in Benton, Arkansas. Back in 2018, ADP was planning on purchasing a Ford and Chrysler dealership in that town from Landers Auto Sales at a combined cost of $4 million, but Ford blocked that purchase. Now, ADP has won that lawsuit, as well as an $18 million dollar judgement.
According to Arkansas Business, a Pulaski County Circuit Court judge has ruled in favor of ADP in its lawsuit against Ford, awarding the dealer group $18 million after he said that the automaker “engaged in deceit and fraud.” ADP argued that a Ford Memphis region general sales manager sent an email to the Ford contracts manager after learning that Crain was planning to buy the dealership. “The buyer, as feared, is Larry Crain, Jr.,” the email read. “His family is nearly entirely responsible for our failures in Little Rock. I can’t imagine a circumstance where he could (or should) be approved.”
“False and deceitful representations were made by agents and employees of Ford,” Judge Timothy Davis Fox said. “The false and deceitful representations were material in influencing ADP’s decision; and ADP sustained damages as a result of such false and deceitful representations.” “This verdict upholds the principles of fairness in the automotive industry and ensures that manufacturers cannot manipulate transactions to the detriment of dealers,” Crain added. “We appreciate the court’s careful review of the evidence and its decision to hold Ford accountable for its actions. This ruling is not just a win for ADP but a victory for all dealerships that expect honesty in their dealings with manufacturers.”
Despite this ruling, Ford confirmed that it plans to appeal the decision on the grounds that it didn’t break any laws by exercising its right of first refusal. “We believe Ford complied with the law and its contractual obligations,” a Blue Oval spokesman said.
Comment
I would like to side with Ford on their statement
about Crain. My wife and I were very loyal Crain family customers for many years, untill we bought a 2017 Ford Expedition. The buying experience was fine, the service department was a nightmare. We finally got Ford involved when the service department stopped taking our calls. Ford requested we use another dealer and we still use them to this day.