Nissan Ordered to Pay $256 Million in Damages to Former Dealer

Nissan Vmotion 2.0 Electric Sedan Concept 1

Nissan ordered to pay $256 million as the ex-dealer receives $121.9 million and addition $134.5 million considering the punitive damages

A former Nissan dealer has won a massive sum of $256 million on damages from the brand’s financial firm eight years after his dealership in California was collapsed. Michael Kahn has claimed that ever since the end of last decade, Nissan Motor Acceptance Corporation defrauded him by cancelling the dealership financing amidst economic crisis hitting between 2008 and 2010.

Kahn was running four Nissan dealerships, a couple of Toyota and Chrysler’s in Los Angeles and San Francisco. Back in the day, he was the largest borrower from Nissan’s financing division. When the global economic crisis came into existence and the cash-strapped economy prevailed, Kahn became delinquent on about $1.6 million in Nissan loans.

Nissan GT-R Track Edition 2017 4

Subsequently, he was sued by the Japanese automaker and was taken to court which resulted in him having to pay $40 million. According to a report emerged on Automotive News, a countersuit was filed by Kahn. In that, he claimed Nissan Motor Acceptance Corp acknowledged his delinquency while saying that other dealers were encountering the same problems.

After the case dragged on, a judge in a Southern California Superior Court has ruled this week in favour of the ex-Nissan dealer. In terms of compensatory damages, he will be receiving $121.9 million while an addition $134.5 million will be awarded considering the punitive damages.


The court verdict will allow Kahn to restore his reputation and life, said a managing partner of the law firm that represented Kahn. He concluded that “this $256 million verdict was an award for fraud.” Kahn pointed the finger at NMAC for the failure of his multitude of dealerships in Superior Automotive Group in 2009.

The court verdict is a crude reminder of the harsh financial shattering the auto manufacturers and dealer endured during that huge economic fallout.
Source: AutomotiveNews