COYLE NISSAN, LLC v. NISSAN NORTH AMERICA, INC.

CourtDistrict Court, S.D. Indiana
DecidedJuly 31, 2023
Docket4:18-cv-00075
StatusUnknown

This text of COYLE NISSAN, LLC v. NISSAN NORTH AMERICA, INC. (COYLE NISSAN, LLC v. NISSAN NORTH AMERICA, INC.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COYLE NISSAN, LLC v. NISSAN NORTH AMERICA, INC., (S.D. Ind. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA NEW ALBANY DIVISION

COYLE NISSAN, LLC, ) ) Plaintiff, ) ) v. ) No. 4:18-cv-00075-TWP-TAB ) NISSAN NORTH AMERICA, INC., ) ) Defendant. )

ORDER ON DEFENDANT'S BILL OF COSTS AND PARTIES' POST-TRIAL MOTIONS

This matter is before the Court on Defendant Nissan North America, Inc.'s ("NNA") Bill of Costs (Filing No. 334) as well as its Motion to Amend Judgment and Renewed Motion for Judgment as a Matter of Law (Filing No. 337). Also before the Court is Plaintiff Coyle Nissan, LLC's ("Coyle") Motion to Amend Final Judgment (Filing No. 335) and Renewed Motion for Judgment as a Matter of Law (Filing No. 336). In May 2018, Coyle initiated this lawsuit against NNA to bring claims for breach of contract, breach of fiduciary duty, and other statutory and common law claims, arising out of the parties' automobile manufacturer-dealer relationship. After years of hard-fought, protracted litigation, and following a motion to dismiss, motion for summary judgment, and supplemental pleadings, three claims and two counterclaims were tried by a jury in August 2022. Judgment as a matter of law was entered as to some claims, and the jury rendered its verdict as to the other claims (Filing No. 331). Thereafter, the Court issued a Final Judgment closing the action (Filing No. 333). The pending Motions quickly followed. For the following reasons, the Court grants in part NNA's Bill of Costs, grants in part and denies in part NNA's Motion, and denies Coyle's Motions. I. BACKGROUND Coyle is an Indiana limited liability company that operates a car dealership in Clarksville, Indiana. NNA is a distributor of new Nissan motor vehicles and automotive products. On July 11, 2012, NNA and Coyle entered into a Nissan Dealer Sales and Service Agreement ("Agreement").

When the parties entered into the Agreement, Coyle's dealership facilities in Clarksville did not meet NNA's facility requirements, so NNA required Coyle to locate and acquire real estate approved by NNA for the construction of a new Nissan dealership Coyle was to build. The Agreement granted Coyle the right to operate from its existing facilities as a temporary location until permanent facilities could be established. The Agreement established a timeline for certain activities to be accomplished to transition from the temporary facilities to the approved permanent facilities. This required Coyle to identify a new dealership site that would meet NNA's facility requirements by September 1, 2013; acquire that site by March 1, 2014; commence facility construction by July 1, 2014; and complete construction of the new facilities and cease dealership operations at its temporary facilities by June 30, 2015.

The Agreement required Coyle to obtain NNA's approval and defined an "approvable site" as an "exclusive, separate and distinct (stand-alone)" NNA dealership facility of a size, appearance, and layout requiring NNA's approval. NNA called its facility guidelines the "Nissan Retail Environmental Design Initiative" or "NREDI." NNA promised Coyle a variety of incentives that would be available after Coyle built an NREDI-compliant facility. During the ensuing months, Coyle identified locations for the dealership and went through the approval process to obtain NNA's approval. However, NNA rejected Coyle's proposals. Throughout the site search process, NNA offered and executed amendments to the Agreement with Coyle, extending the deadlines for Coyle to identify an approvable site; complete the acquisition of the site by April 15, 2017; schedule and complete a design consult by May 1, 2017; submit final architectural plans for NNA's approval by July 1, 2017; and commence construction of the new facilities by October 1, 2017. If these conditions were met, the Agreement would be extended by eighteen months.

On April 20, 2017, more than three and a half years after Coyle first proposed it, NNA approved the originally proposed site for Coyle to build the new permanent facilities. It was the same site that NNA had twice rejected. Because NNA had not approved the site for more than three and a half years, Coyle had been operating out of the temporary facility that was inferior and in a location that was undesirable. Based on the delays in the site approval process under the Agreement as well as Coyle's alleged exclusion from an incentive program, Coyle filed this lawsuit against NNA on May 2, 2018, and then amended its Complaint on January 2, 2019 (Filing No. 46), asserting claims for breach of contract (Count I), failure to bargain in good faith and deal fairly (Count II), violation of California law – covenant of good faith (Count III), breach of fiduciary duty (Count IV), violation

of Indiana Code § 23-2-2.7-2(1)(iv) (Count V), violation of Indiana Code § 23-2-2.7-2(5) (Count VI), violation of Indiana Code § 9-32-13-8 (Count VII), violation of Indiana Code § 9-32-13-13 (Count VIII), violation of Indiana Code § 9-32-13-27 (Count IX), violation of 15 U.S.C. § 1221 (Count X), violation of the Robinson-Patman Act, 15 U.S.C. § 13(a) (Count XI), and declaratory judgment (Count XII). Each of the claims was based on Coyle's allegations that (1) NNA arbitrarily and unjustifiably, and without good business reason, rejected Coyle's proposals for the site of the permanent facilities only to, years later, approve the same location at a delay, injury, and loss to Coyle; and (2) NNA offered a selective incentive program only to certain preferred dealers and had not offered the incentive program to Coyle. NNA moved to dismiss all of the claims except the breach of contract claim, and the Court granted in part and denied in part that motion (Filing No. 86). Counts II, IV, VII, VIII, and IX were dismissed. Counts I, III, V, VI, X, XI, and XII survived the motion to dismiss. NNA then moved for summary judgment on the remaining claims of the Amended Complaint.

Coyle's Amended Complaint was based upon the allegation that NNA wrongfully and unreasonably rejected several dealership sites proposed by Coyle beginning in 2012, and as noted above, on April 20, 2017, NNA finally approved a site for Coyle's dealership, which site had been originally and formally proposed by Coyle in September 2013. Then on February 13, 2021, almost three years after Coyle initiated this action and more than two years after Coyle filed the Amended Complaint, Coyle received a letter from NNA dated February 11, 2021, stating that NNA rescinded its approval of the dealership site and requested a written response outlining a new facility proposal and timeline. The rescission letter explained that the approved site had been substantially modified for use by a competing line-make, and, therefore, the facility plan could not be fulfilled. Coyle disputed NNA's assertion, explaining that only a small portion of the site has been paved with

asphalt, and all of the land on the site remained available for use as the permanent location for a new Nissan facility. Based upon NNA's February 2021 rescission of its approval of the dealership site, Coyle filed a Supplemental Complaint, alleging that the rescission constituted a new and separate breach of the parties' Agreement, was an additional violation of California's covenant of good faith and fair dealing, and was a violation of the Indiana Deceptive Franchise Practices Act (Filing No. 167- 1). NNA filed its Answer to Coyle's Supplemental Complaint and also asserted two counterclaims—breach of contract and declaratory judgment—in response thereto (Filing No. 213).

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COYLE NISSAN, LLC v. NISSAN NORTH AMERICA, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/coyle-nissan-llc-v-nissan-north-america-inc-insd-2023.