Jury Finds That Hyundai Failed to Fairly Allocate Vehicles

A federal jury in Florida found that Hyundai Motor America breached its Dealer Agreements, and the requirements of Florida law, to fairly and reasonably allocate new vehicles to Universal Hyundai.  The jury found that the dealership suffered over $1 million in lost profits as result.

BSM shareholders, Nick Bader and Jason Allen, represented Universal Hyundai in the two week trial in the Middle District federal court.  Universal Hyundai had been in prior litigation with HMA regarding a breach of settlement agreement in which BSM obtained a $16 million verdict in 2021. 

In the most recent trial, HMA admitted to factoring our client’s litigation into discretionary vehicle allocation decisions but argued that it could do what it wanted with the vehicles it set aside for discretionary allocation. However, ALL vehicles, including discretionary vehicles, must be distributed in a fair and proportional manner as required by the terms of Hyundai’s own Dealer Agreement and Florida law. The jury clearly agreed.

Attorneys Bader and Allen then obtained an Order from the Court tripling the jury verdict to over $3 million for Universal Hyundai pursuant to the provisions of Florida motor vehicle franchise laws.

This verdict is important to all new motor vehicle dealers around the United States as most Dealer Agreements contain a requirement related to fair distribution of vehicles and almost all states have a motor vehicle franchise law provision which governs the distribution of vehicles to dealers.  Over the years, manufacturers have argued that they are permitted to set aside vehicles for discretionary allocation outside of these legal requirements.  The Florida jury verdict indicates that the manufacturers’ position allowing favorable treatment for some dealers and not others is something jurors may find as violations of other Dealer Agreements and similar franchise protections in other states.