Gilbert Nissan sued for $3.4 million over contract

EPHRATA - A Nissan financing company is suing Gilbert Nissan over claims the Moses Lake dealership breached contract agreements, resulting in about $3.4 million of unpaid loan balances.

Nissan Motor Acceptance Corporation (NMAC) filed a lawsuit against Gilbert Motor Company in Grant County Superior Court earlier this week. Gilbert Motor Company operates Gilbert Nissan in Moses Lake.

According to court documents, the two companies entered into an agreement in December 2010 in which the lending company agreed to finance Gilbert Motor's purchase of new and used automobiles, trucks and other vehicles.

Under the agreement, Gilbert Motor was expected to pay the company whenever it sold a vehicle.

The lending company reportedly determined that Gilbert Motor failed to pay for sold vehicles during a December 2011 inventory audit of Gilbert Motor and two other dealerships also owned by Gilbert owner Mark W. Gilbert.

As a result of breaching the agreement, NMAC terminated it. According to the lawsuit, Gilbert Motor was notified that it must pay back any outstanding debt.

The two other dealerships moved their financing to other lenders in July 2012 and paid NMAC all the money it owed, according to court documents. However. Gilbert Motor did not secure alternative financing and remained in debt.

In a December 2012 letter, NMAC demanded Gilbert Motor satisfy its debt by Feb. 1.

In a Jan. 12 audit of Gilbert Motor, NMAC reportedly determined that the dealership had not paid for 65 cars. NMAC also told Gilbert Motor that it still owed for past due wholesale charges, mortgage payments and sign lease payments, according to court documents.

NMAC ordered Gilbert Motor to repay almost $1.6 million by Jan. 18, according to the lawsuit. Gilbert Motor did not pay the $1.6 million, which prompted NMAC to take legal action.

According to the documents, NMAC then discovered Gilbert Motor had sold an additional four vehicles since Jan. 18, bringing the total number of cars sold without payment to the lending company to 69.

The lawsuit calls for the immediate repayment of about $3.4 million in unpaid loan balances, $44,000 in sign leasing fees and about $1.7 million it owes in mortgage fees.

Gilbert is currently involved in another civil suit, according to a Walla Walla Union-Bulletin article. The City of College Place is demanding $2 million it claims it is owed for the city's Commercial Drive project.

According to the Union-Bulletin, the city filed a civil lawsuit this week against Mark W. and Susan Gilbert, GA Group Properties and Gilbert Imports. The lawsuit claims the defendants failed to make payments promised to the city for the construction of Commercial Drive, according to the Union-Bulletin.

Calls to Mark Gilbert for comment were not returned as of press time Thursday.