Blue Springs Ford Sales Inc. is seeking bankruptcy protection to forestall payment on a $2 million verdict for selling a rebuilt wreck.
The dealership filed a petition for Chapter 11 reorganization in Delaware on March 21. The case has been transferred to US Bankruptcy Court in Kansas City.
Blue Springs Ford listed $2.1 million in debts to its 20 largest creditors. Chief among those is a $2.06 million judgment owed to Michael and Kimberly von David.
A Jackson County jury awarded the couple $171,520 in actual damages, $1.75 million in punitive damages and $137,070 in attorney fees in 2010, finding that Blue Springs Ford had hidden the fact that the vehicle they bought had been in an accident. The case is on appeal.
The couple’s attorney, Bernard Brown of The Brown Law Firm in Kansas City, has pursued a series of similar cases against Blue Springs Ford.
The dealership listed $10 million to $50 million in assets in its bankruptcy petition. According to court filings, it has 124 employees and had 2011 revenue of $60.8 million.
Paul writes about legal affairs and advertising and marketing.
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