Federal court jury issues split decision in Hyundai-Napleton litigation

A Hyundai spokeswoman said the automaker was disappointed that the jury did not award damages to Hyundai and said it was “reviewing and considering all available options going forward.”

He said Hyundai provided evidence that dealers had submitted fraudulent recall replacement claims.

“Such a plan not only hurts Hyundai, it also affects our customers and the West Palm community,” the spokesperson said in a statement. “We are pleased that the jury found that two defendants committed the legitimate fraud we presented.”

Napleton files countersuit against Hyundai In August 2021, it accused the automaker of unfair ride-hailing. A jury ruled against Napleton on these allegations.

A Hyundai spokesman said, “The jury found and agreed that Hyundai’s allocation of vehicles to West Palm Beach Hyundai was fair under all circumstances and in favor of Hyundai.”

Warranty fraud?

From 2015 to 2019, Hyundai recalled certain Sonata, Santa Fe Sport, Tucson and Veloster models for possible engine failure and extended powertrain warranty coverage beyond the original vehicle purchaser. .

In Hyundai’s 2020 lawsuit, the automaker said that since at least 2016, the defendants had purchased certain Sonata and Santa Fe vehicles from auctions and filed fraudulent warranty claims for such vehicles with Hyundai. Hyundai will then either refund the repair fee or buy the vehicle back. In 2017, the alleged scheme earned Napleton’s West Palm Beach dealer about $180,000.

A counterclaim by the West Palm Beach Hyundai store in Napleton accused Hyundai of fraud and violations of Florida’s dealer laws. Napleton said Hyundai’s Accelerate dealer image program, incentive program and Genesis vehicle sales requirements violated Florida law, and accused Hyundai of engaging in price discrimination.

The counterclaim also alleges that Hyundai sued Napleton Automotive to divert attention from its own engine failure “debacle” and “to harass West Palm, ruin its reputation and harm its business.” ” claimed to be. Partnership with West Palm. ” Hyundai called these counterclaims “frivolous” at the time.

The group also claimed margins for Hyundai-based dealers in terms of sales performance targets and facility requirements, and gave inconsistent per-vehicle incentives to Hyundai dealers across Florida.

Melissa Burden, Miranda Dunlap, and Paige Hodder contributed to this report.

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