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Home New Cases Alleged Breach of Contract Claim Against Precision Fleet Services

Alleged Breach of Contract Claim Against Precision Fleet Services

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September 20, 2021, District of Arizona – September 20, 2021, District of Arizona – Plaintiff Trustee Anthony H. Mason for the bankruptcy estate of a wholesale car dealer, Adolph’s Auto Sales, Inc., recently charged multiple defendants with a 21-count adversary complaint. The Defendants include Precision Fleet Services, LLC, Autohouse, LLC; Autohouse Tempe, LLC; Autohouse Phoenix, LLC; and Autohouse Chandler-Gilbert, LLC, Chris Finn, and Krista Finn. 

The Trustee brought multiple claims against Defendants including, alleged breach of contract, turnover, misappropriation, contempt, conversion, avoidance of fraudulent transfers under Sections 544, 548, 542, 543 of the Bankruptcy Code. The Trustee seeks to recover about $521,100.00 or more in claims. The Trustee also brought state law fraudulent transfer claim against Defendants.

According to the complaint, the Debtor primarily purchased vehicles using funds loaned to it or using a line of credit provided to it from various entities. Subsequently, Debtor used this loaned money to purchase vehicles and, in turn, sell them to retail automobile dealers including, Precision. Precision would further sell it to consumers. Allegedly, Debtor sold certain vehicles it owned to Precision, which Precision further sold to consumers but failed to pay the Debtor. Precision and the Autohouse Entities allegedly held or controlled funds from the sale of the vehicles. 

The Trustee claims that these funds, or their value, must be turned over to the Trustee according to 11 U.S.C. § 542 as they are property of the Debtor’s bankruptcy estate. The Trustee also seeks a determination from the court that Autohouse Entities are successors-in-interest and the alter-egos of Precision.

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