Oakes Auto, Inc., et al. v. Mitsubishi Motors of North America

District Court, D. Kansas·Decided July 13, 2026·No. 2:24-cv-02175·Unknown

Opinion

In the United States District Court for the District of Kansas _____________

Case No. 24-cv-2175-TC _____________

OAKES AUTO, INC., ET AL.,

Plaintiffs

v.

MITSUBISHI MOTORS OF NORTH AMERICA,

Defendant _____________

MEMORANDUM AND ORDER

Plaintiffs Oakes Auto, Inc., and DO KCK, LLC, sued Mitsubishi Motors of North America, raising various claims arising out of the par- ties’ commercial relationship. Doc. 142. Mitsubishi moves to dismiss the Complaint and requests partial summary judgment, Docs. 73 and 143, and each side moves to exclude the other’s experts, Docs. 146 and 147. For the following reasons, Mitsubishi’s motion for partial sum- mary judgment is granted and the other motions are denied as moot.1 I A Summary judgment is proper under the Federal Rules of Civil Pro- cedure when the moving party demonstrates “that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A fact is “material” when it is necessary to resolve a claim. Adler v. Wal-Mart Stores, Inc., 144 F.3d 664, 670 (10th Cir. 1998). And disputes over material facts are “genu- ine” if the competing evidence would permit a reasonable jury to de- cide the issue in either party’s favor. Id. Disputes—even hotly

1 Mitsubishi requests only partial summary judgment on Count III. But, as explained in Part II.C, infra, there is no subject-matter jurisdiction for Count III. contested ones—over facts that are not essential to the claims are ir- relevant. Brown v. Perez, 835 F.3d 1223, 1233 (10th Cir. 2016). Indeed, belaboring such disputes undermines the efficiency that Rule 56 seeks to promote. Adler, 144 F.3d at 670. At the summary judgment stage, material facts “must be identified by reference to affidavits, deposition transcripts, or specific exhibits incorporated therein.” Adler, 144 F.3d at 671; see also D. Kan. R. 56.1(a)–(c). To determine whether a genuine dispute exists, the court views all evidence, and draws all reasonable inferences, in the light most favorable to the nonmoving party. See Allen v. Muskogee, Okla., 119 F.3d 837, 839–40 (10th Cir. 1997). That said, the nonmoving party cannot create a genuine factual dispute by making allegations that are purely conclusory, Adler, 144 F.3d at 671–72, 674, or unsupported by the record. See Scott v. Harris, 550 U.S. 372, 378–81 (2007). The moving party bears the initial burden of showing the absence of any genuine issue of material fact and entitlement to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986); Savant Homes, Inc. v. Collins, 809 F.3d 1133, 1137 (10th Cir. 2016). Once the moving party meets its burden, the burden shifts to the nonmoving party to demonstrate that genuine issues as to those dispositive matters remain for trial. Celotex, 477 U.S. at 324; Savant Homes, 809 F.3d at 1137. B This is principally a contract dispute between Oakes Auto, Inc., and Mitsubishi Motors of North America. The parties executed an agreement that set out the terms of Oakes’s Mitsubishi dealership in Kansas City, Kansas. Based on what it perceived as a breach, Mitsubishi terminated the agreement. This lawsuit comprises various claims that Oakes raises regarding that termination and Mitsubishi’s own alleged breach. The following explains the context in which the dispute arose. Plaintiffs Oakes Auto, Inc., and DO KCK, LLC, are Kansas com- panies. Doc. 142 at ¶¶ 2.a.i, 2.a.ii.2 Defendant Mitsubishi is a California corporation that distributes vehicles to dealers. Id. at ¶ 2.a.iv. In 2021,

2 All references to the parties’ briefs are to the page numbers assigned by CM/ECF. Additionally, the following facts are uncontroverted or, to the ex- tent controverted, viewed in the light most favorable to Oakes and DO, the nonmoving parties. See Snyder v. Beam Techs., Inc., 147 F.4th 1246, 1259 n.5 (10th Cir. 2025). Oakes and Mitsubishi entered into a dealer sales and service agreement. Id. at ¶ 2.a.x; see Doc. 143-4. That agreement was a renewal of the par- ties’ previous contract, which is not at issue here. Doc. 142 at ¶¶ 2.a.viii, 2.a.ix; see Docs. 143-2 & 143-3. The agreement incorporated a dealer development plan. Doc. 142 at ¶ 2.a.xi; see Doc. 143-5. It set out the terms for Oakes’s operation of a Mitsubishi dealership in Kan- sas City, Kansas. Doc. 142 at ¶ 2.a.vi. Plaintiff DO had no contractual relationship with Mitsubishi but owned the real estate where the deal- ership was located, and it leased that real estate to Oakes. Id. at ¶ 2.a.vii. The terms of the written agreement with Mitsubishi required Oakes to implement the Mitsubishi Visual Identity program. Doc. 143 at ¶ 25; see Doc. 143-5 at 4 (referring to the program as the “Retail Image Program”). In particular, the agreement required Oakes to in- stall “authorized sales and service signs” at the dealership. Doc. 143-4 at 23. It also obligated Oakes to use Mitsubishi’s trademarks as in- structed and to “promptly discontinue the display and use” of Mitsubishi’s trademarks if asked to do so. Id. at 33–34. The agreement explained that the failure to install the approved signage would “con- stitute grounds for termination.” Id. at 23. In February 2022, a dispute arose concerning the Visual Identity program. Oakes was displaying a Mitsubishi banner outside its dealer- ship instead of the required signs. Doc. 143 at ¶ 26. Mitsubishi sent Oakes a letter explaining that Oakes was in breach of the dealer sales and service agreement because the banner was not the required signs and it was an unauthorized use of Mitsubishi’s trademark. Id. at ¶ 27; see Doc. 143-8. Oakes responded that it would install the required signs by December 31, 2022. Doc. 143 at ¶ 29; see Doc. 143-9. Mitsubishi then asked Oakes to install the required signs by August 1, 2022, and Oakes agreed. Doc. 143 at ¶¶ 31, 32; see Docs. 143-10 & 143-11. Alt- hough Mitsubishi attempted to help Oakes by sending Oakes a pro- posal for how Oakes could install the required signs, Oakes did not install the required signs. Doc. 143 at ¶¶ 33, 34; see Doc. 143-12. In July 2022, another dispute arose, this time regarding Oakes’s efforts to sell the dealership. Oakes entered into an asset purchase agreement with Benji Auto Mitsu Holdings, LLC. Doc. 143 at ¶ 35. That asset purchase agreement called for Oakes to sell its dealership assets to Benji. Doc. 143-20. Plaintiff DO entered into a related real estate purchase agreement with BE Realty Holdings, LLC. Doc. 143 at ¶ 36. Under that real estate purchase agreement, DO was to sell the real estate where the dealership was located to BE. Doc. 143-21. Both agreements contained a condition that Mitsubishi had to consent to the sale. Doc. 143 at ¶¶ 38, 39. Mitsubishi did not consent. Doc. 143 at ¶ 43. Mitsubishi explained to Oakes that it was concerned that the buyer did not have experience selling new cars, did not live in the Kansas City area, did not submit a floor plan, and had a poor record of profitability. Id. at ¶ 44; see Doc. 143-13. Oakes then submitted updated asset and real estate purchase agreements to Mitsubishi for reconsideration. Doc. 143 at ¶ 47; see Doc. 143-22. The updated agreements brought in a new partner into the deal, Kevin Woody, who had experience in new vehicle sales, would work as a general manager, and would own 15% of the dealer- ship. Doc. 143-22. Mitsubishi objected to the sale again. Doc. 143 at ¶ 49.

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