By Brenda L. Showalter
The Republic
Sheriff’s deputies seized dozens of vehicles Monday at John Hubler Nissan-Suzuki on Jonathan Moore Pike.
A complaint filed in Bartholomew Superior Court 1 claims that Hubler owes Nissan Motor Acceptance Corp. $4.9 million, including the cost of vehicles, equipment and signs, as the result of a breach of contract.
The order stipulates that 185 vehicles with a value of $3.6 million will be seized, although some of the vehicles are at other Hubler dealerships.
On Monday afternoon, sheriff’s deputies placed bright green stickers on car windows at the Jonathan Moore location, stating:
“This vehicle is not for sale. It has been seized by the sheriff’s department pursuant to court order.”
“We’re enforcing what the judge ordered us to do,” said Maj. Mark Gorbett, information officer for the sheriff’s department.
Gorbett estimated one-third of the 185 vehicles were seized in Columbus.
John Stroh, a Columbus attorney for the plaintiff, NMAC of California, said the vehicles could be in Columbus or at Hubler dealerships in Greenwood, Martinsville and Indianapolis.
The Columbus Hubler dealership moved from National Road to the Jonathan Moore location in August when it expanded its inventory and renovated the building formerly occupied by a Mexican restaurant.
Mark Jonela, owner of the Hubler Columbus dealership, could not be reached Monday for comment. Employees at the location declined comment.
A hearing will be scheduled, but the order signed by Judge Chris Monroe instructs the sheriff to seize the property before the hearing.
The list of vehicles to be seized ranged from new Nissan Pathfinders valued at $32,247 to used vehicles costing less than $10,000.
Contract dispute
Stroh declined comment on the case, but explained that the “complaint for replevin” filed Monday means NMAC can take back the property it provided to Hubler based on a wholesale agreement the two parties signed.
The agreement stated that Hubler granted NMAC a security interest in all of its assets, including vehicles, parts, accessories, machinery, equipment, tools and other goods.
The complaint also states that the agreement included Hubler having a wholesale line of credit from NMAC for purchases of vehicles that would be sold at the dealerships.
Hubler agreed to repay NMAC the wholesale price of each financed vehicle plus interest “on or before the close of the next business day following its sale to the retail customer,” the complaint states.
The court document states that NMAC discovered that Hubler had breached its obligations in October 2004 by failing to “timely pay” NMAC for vehicles that were sold.
The complaint also states that Hubler failed to keep vehicles at sites approved in the agreement by diverting some vehicles to dealerships owned by Hubler in Florida.
Stroh said vehicles already purchased from Hubler during the time the agreement was allegedly violated will not be seized.
Steve Parrett, spokesman for NMAC, released the following statement:
“Nissan Motor Acceptance Corp. takes very seriously any attempts by a dealer to default on a loan and will take whatever legal means necessary to recover its losses. This is a standard business practice for NMAC as part of its wholesale agreement with dealers it finances.”
Parrett said he could not comment further since the matter is in the courts.
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