Florida Car Dealership Sued for Breach of Contract
One of the most common breaches in a contract is failure to pay money that is owed to one party. Breaches of contract may result in hundreds, thousands, or even hundreds of thousands of dollars.
A Florida car dealership is being sued by a vehicle inventory financing company in Indiana for more than $330,000 due to a breach of contract. The lawsuit was filed February 7.
The plaintiff, Axle Funding LLC, is a floorplan finance company that finances purchases made by used motor vehicle dealers. This vehicle inventory is then sold for profit. The defendant, Cars of Orlando LLC, is a dealership based in Ocoee, Florida.
The phone number listed for ICars has since been disconnected and could not be reached for comment. Axle is suing the dealership for breach of contract and fraud for the amount of $330,076.20. Axle claims ICars committed check fraud when the company made payments for inventory in October 2024 and those payments were reversed for insufficient funds.
In February 2021, Axle and ICars entered into a financing agreement that granted Axle a security interest in ICars’ inventory, as well as other property and assets.
Axle advanced funds for the finance and purchase of ICars’ inventory. According to the agreement, ICars was required to pay back Axle at least 24 hours after receiving payment from a customer. On October 15, 2024, ICars paid Axle more than $165,000 to release seven vehicles. Each payment was reversed for insufficient funds.
As of January 3, 2025, Axle had advanced funds to ICars to acquire 20 vehicles. After accounting for all payments, offsets, and credits, ICars now has an unpaid balance of $267,451.59.
Breach of Contract for Lack of Payment
When one party fails to fulfill its obligation to pay as agreed in a contract, this is known as a material breach because payment is typically a fundamental term. The non-breaching party may take legal action, including:
- Demand letter. A demand letter is a formal document sent to the non-paying party, requesting immediate payment. It typically includes the amount due, any applicable late fees, a deadline for payment to avoid legal action, and a warning of possible legal consequences (such as lawsuit or collections).
- Mediation or arbitration. If direct communication fails, alternative dispute resolution may help. Mediation involves a neutral third party facilitating negotiations to reach a compromise. Arbitration is more formal; an arbitrator reviews the case and issues a legally binding decision.
- Lawsuit for damages. If payment is still not received, the non-breaching party can sue for compensatory damages (the unpaid amount and additional costs incurred), consequential damages (financial losses caused by non-payment), and legal fees.
- Contract termination. If the breach is significant and ongoing, the non-breaching party may officially terminate the contract and seek restitution for losses.
Contact Us Today
Breach of contract is a common business issue. Companies enter into contracts without fully understanding the terms or their obligations, causing arguments.
Once you’ve been in business for any length of time, you learn there is no way of escaping conflict. When legal disputes arise, contact a Bradenton business litigation lawyer from Cahall Law Firm. We take the time to explain the risks and consequences of business litigation. To schedule a consultation, call (941) 281-2019 or fill out the online form.
Source:
theindianalawyer.com/articles/indianapolis-financing-company-sues-dealership-for-alleged-breach-of-contract-seeks-330k
