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In Auto. Fin. Corp. v. DZ Motors, LLC, Civil Action No. 16-7955 (MAS) (DEA), 2021 U.S. Dist. LEXIS 69915 (D.N.J. Apr. 9, 2021), Judge Shipp reached different conclusions on a lien priority dispute between a Floorplan lender and credit union with respect to 2 luxury vehicles “purchased” by an SoT dealer’s manager. With respect to the Bentley, the Court found… Read More

In Toyota Motor Credit Corp. v. Cte 1, Civil Action No. 19-19092 (CCC), 2021 U.S. Dist. LEXIS 54385, at *3-7 (D.N.J. Mar. 23, 2021), Judge Cecchi dismissed dealer principals'/guarantors claims against their floorplan lender. WHEREAS TMCC argues that DeMaio's and Zeccardi's counterclaims must be dismissed on the basis that they lack standing to sue TMCC because they are bringing derivative… Read More

In Fca Us Llc v. Santander Bank, N.A., No. 19 C 1516, 2021 U.S. Dist. LEXIS 52353 (N.D. Ill. Mar. 17, 2021), Judge Lee estopped a dealership from asserting defenses against a Floorplan lender. Here, Santander asserts that it is entitled to the funds held by FCA under the following logical sequence: (1) New City entered into and defaulted under… Read More

In Ct102 Llc v. Nextgear Capital, No. 20A-CC-1909, 2021 Ind. App. Unpub. LEXIS 223, at *3-5 (Ct. App. Mar. 19, 2021), the Court of Appeals affirmed the trial court's finding of damages sustained by a floorplan lender. The facts and procedure were as follows: On remand, the trial court held an evidentiary hearing on damages on October 6, 2020. Tr. Vol.… Read More

In In re Haw. Motorsports, No. 20-10006-BPH, 2020 Bankr. LEXIS 3428 (Bankr. D. Mont. Dec. 7, 2020), the Bankruptcy Court found that AHFC did not own the retailer’s collateral, but retained an unperfected security interest pursuant to a Wholesale Financing Agreement. In its Motion and accompanying Brief, Honda asserts that stay relief is appropriate because Debtor is in possession of inventory… Read More

In Nbt Bank Na, No. 528759, 2020 N.Y. App. Div. LEXIS 2382, at *3-4 (App. Div. 3rd Dept. Apr. 16, 2020), the N.Y. Appellate Division held that a floorplan lender properly debited a dealer's dealer reserve. Upon our review of the record, we find that a fair interpretation of the evidence supports Supreme Court's determination that the "dealer reserve account… Read More

In In re Ferreira, No. 18-5264, 2019 Bankr. LEXIS 3342, at *6-8 (Bankr. N.D. Ga. Oct. 24, 2019), the Bankruptcy Court found no fiduciary duty between a floorplan lender and dealer. A number of courts have considered whether contracts in a floor planning relationship create such a technical trust. As the bankruptcy court explained in VW Credit, Inc. v. Salim… Read More

In Swl v. Nextgear Capital, No. 18A-CC-2955, 2019 Ind. App. LEXIS 387, at *14-19 (Ct. App. Aug. 28, 2019), the Court of Appeals held that the trial court should not have granted summary judgment to a floorplan lender against the dealer on the dealer's promissory estoppel claim. Dealer also asserts that the trial court erred when it entered summary judgment… Read More

In Wester Americredit Fin. Servs. v. Adams Motor Co., No. C18-4067-LTS, 2019 U.S. Dist. LEXIS 141889, at *2-5 (N.D. Iowa Aug. 20, 2019), the District Court threw out counter-claims filed against a floorplan lender.  The facts were not atypical: GM Financial acted as AMC's floorplan lender and entered into a term loan and revolving line of credit with AMC on… Read More

In Auto. Fin. Corp. v. Nunez (In re Nunez), Nos. 17-33845-hdh7, 18-03004, 2019 Bankr. LEXIS 824 (Bankr. N.D. Tex. Mar. 15, 2019), Judge Hale denied a Floorplan lender’s non-dischargeability claim. The Plaintiff alleges that the Defendant committed fraud in securing advances from the Plaintiff and by transferring the Secured Vehicles without being paid in full. The Plaintiff also alleges the… Read More

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