Ford Ordered to Pay Ark. Dealer $18M After Blocking Sale

Little Rock, Ark.-based Auto Dealership Partners LLC and its owners, Larry Crain Jr. and Heath Campbell, have won an $18 million judgment against Ford Motor Co. after accusing the factory of engaging in “deceit and fraud” by blocking the purchase of a Benton, Ark., franchise.
The case was tried in Pulaski County Circuit Court and decided Wednesday, according to Arkansas Business. The award includes $2 million to recoup a goodwill payment made by ADP to Ford to facilitate the purchase and $16 million in punitive damages.
Plaintiff’s evidence included a damning email from a regional Ford executive to the manufacturer’s contracts manager. The executive wrote, in part, “The buyer, as feared, is Larry Crain, JR. 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.”
A Ford spokesman told Arkansas Business the factory properly exercised its right of first refusal and will appeal the decision. In a press release, Crain says justice has been served.
“This verdict upholds the principles of fairness in the automotive industry and ensures that manufacturers cannot manipulate transactions to the detriment of dealers. 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.”