Dealer group wins $18M judgment against Ford over blocked dealership sale

Pulaski County Circuit Court Judge Tim J. Fox ruled that Ford engaged in “deceit and fraud in its actions with ADP.” (2 min. read)

Author

Anna del Villar
March 21, 2025

Campbell Chrysler Dodge Jeep Ram

Auto Dealership Partners (ADP)— co-owned by Larry Crain Jr. and Heath Campbell, has won a major legal victory against Ford Motor Company $F ( ▼ 1.16% ) —with a judgement awarding the group $18 million in damages, including $16 million in punitive damages.

What happened: The case centered on Ford’s use of its right of first refusal (RoFR) for an asset purchase agreement (APA). The court found the RoFR was misused to block ADP’s purchase of a Ford dealership from the Penske organization to reroute the deal to another buyer. 

The details: Matthew Atkenson, who served as the Ford Memphis Region General Sales Manager until December 1, 2018, sent an email on November 2, 2018, forwarding the APA to Edie Lucas, then the Ford Contracts Manager and an Assistant Secretary of defendant Ford.

The email reads: FYI Edie - this is the deal we discussed a while ago. The buyer, as feared, is Larry Crain, JR. His family is nearly entirely responsible for our failures in Little Rock. I can't imagine a circumstance where he could (or should) be approved. But wanted you to be aware since Kevin (Cour) now knows.

  • ADP—which was also purchasing a Chrysler dealership from Penske at the same time—planned to pay $4 million for goodwill for the Ford dealership and nothing for the Chrysler one.

  • ADP then received communications for Ford insisting the goodwill be split evenly, assigning $2 million to each dealership. Crain—believing he was acquiring both—agreed without objection.

  • Afterward, Ford exercised its right of first refusal, blocking the Ford dealership sale. But the Chrysler deal closed—leaving ADP on the hook for an extra $2 million.

As a result: Pulaski County Circuit Court Judge Tim J. Fox ruled that there was “overwhelming evidence sufficient” that Ford engaged in “deceit and fraud in its actions with ADP.”

What they’re saying: Crain—who also leads Crain Automotive Group—called the verdict a win for fairness in the industry, saying it “upholds the principles of fairness in the automotive industry and ensures that manufacturers cannot manipulate transactions to the detriment of dealers.”

Looking ahead: Despite the legal headache—Crain says ADP remains committed to Ford, continuing to serve customers at its Crain Ford Jacksonville and Little Rock locations.

What we’re watching: CDG News reached out to Ford for comment and received the following statement: “We believe Ford complied with the law and its contractual obligations. We will appeal this decision.”

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