Dealer Gets Court Order Preventing Bank From Terminating Floor Plan
A floor plan lending institution threatened to terminate its floor plan relationship with an automobile dealership client. The basis upon which the floor plan lender sought to terminate the relationship was not necessarily due to any allegation that the dealership was “out of trust.” Rather, the floor planer sought to terminate the floor plan relationship based upon allegations of fraud. After our automobile dealer client received notice of the lender’s intention to terminate financing, we immediately sought a temporary restraining order and preliminary injunction to compel the floor plan lender to continue to finance the purchase of automobiles pending the Court’s ultimate determination of the facts in the case. Essentially, our law firm argued on behalf of our client that the floor plan lender was unfairly accusing the dealership of fraud and that the lender had no basis to terminate the floor plan financing. Our law firm was successful in obtaining the temporary restraining order and preliminary injunction thereby compelling the floor plan lender to continue financing of the acquisition of automobiles pending ultimate determination by the Court.