Company Response on 05/22/2009:
DEALER SERVICES CORPORATION ELIMINATES FRIVOLOUS CLAIM OF 189 MILLION DOLLARS FILED BY FAILED USED CAR DEALER MICHAEL GRISSOM DOING BUSINESS AS AMERICAN FAMILY AUTO
On March 3, 2009, Dealer Services Corporation (“DSC”) successfully eliminated frivolous claims of 189 million dollars and a request for punitive damages filed by failed used car dealer Michael Grissom, who previously did business as American Family Auto. The California Riverside County Superior Court granted DSC’s motion to strike Grissom’s spurious allegations for punitive and exemplary damages, as well as his claim for 189 million dollars, as improper and without any factual basis.
Plaintiff Michael Grissom borrowed approximately $200,000 from DSC in order to finance his inventory of used cars, but when his partnership with Alfred King failed, Grissom cynically turned against his partner, lenders, suppliers, and their employees, and filed suit in Riverside County Superior Court blaming everyone but himself.
The Court threw out four previous complaints filed by Grissom, as wholly insufficient, including his spurious claims of breach of fiduciary duty, breach of duty of loyalty, breach of the implied covenant of good faith and fair dealing, and conspiracy. In his final opportunity, the Court has allowed only claims for breach of contract and negligence, and disallowed his $189 million claim and his request for an award of punitive damages. More particularly, the Court found that there were no facts for Grissom to take to trial for unfair competition and lack of lender’s license.
Indicative of his baseless claims, Grissom is on his third set of attorneys and his fifth complaint and now must defend against DSC’s cross-complaint seeking recovery of $370,195.83 in treble damages, plus attorney fees and costs.
DSC vigorously responds to claims by fly-by-night dealerships who borrow money, fail at their business, and attempt to blame DSC and others for their own shortcomings. For further information contact Prenovost, Normandin Bergh & Dawe, a Professional Law Corporation, (714) 547-2444.