McAllister claims Nissan knew he was new to car business and didn’t help dealership succeed

By Holbrook Mohr, AP
Wednesday, January 6, 2010

McAllister claims Nissan didn’t help dealership

JACKSON, Miss. — Nissan Motor Acceptance Corp. knew Deuce McAllister was a football player — not a veteran of the car business — and did little to help his dealership succeed, the former New Orleans Saints running back claims in court records.

McAllister’s attorneys made the allegation this week in a counterclaim to a federal lawsuit filed by NMAC, which seeks more than $1.5 million from McAllister and his company, Deuce McAllister Motors LLC., over the defunct dealership.

McAllister, 31, was a football star at the University of Mississippi and spent eight seasons as one of the Saints’ most popular players before being released in February. He has invested heavily in his native Mississippi, including the Nissan business, a luxury car dealership and high-end real estate.

Deuce McAllister Nissan of Jackson, however, closed this year. The dealership operated in Chapter 11 for a time and agreed to liquidate its remaining assets through Chapter 7 bankruptcy in May.

NMAC later sued McAllister in U.S. District Court in Jackson, claiming the dealership defaulted on hundreds of thousands of dollars in payments in 2008 and exceeded its credit limits even more, among other things.

NMAC knew McAllister “was a young professional athlete inexperienced in the motor vehicle sales business” and was depending on NMAC to help the company succeed, according to court filings.

McAllister already had a used-car business when he opened the Nissan store.

Instead of helping in the Nissan venture, McAllister claims NMAC withheld information that the dealership wouldn’t be profitable in the area and neglected to warn him that one of his partners had done business with a Nissan-related dealership before and “was unsuitable for the management position.”

NMAC attorney Chad J. Hammons of Jackson referred questions to the company. NMAC spokesman Fred Standish told The Associated Press on Wednesday the company doesn’t comment on litigation.

In court records, NMAC says it found problems with the dealership during its 2008 audit, then sent a monitor there and reinstated its credit. But the dealership continued to sell cars and not pay NMAC back, racking up more debt, according to the lawsuit.

As a result of the failed business, McAllister’s counterclaim says he lost money and “incurred damage to his business relationships and reputation, and has suffered mental anguish and anxiety.” He’s seeking unspecified damages at this time.

McAllister’s lawyer had no comment.

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