New York supplier Kitty Van Bortel has sued Ford Motor Co., claiming the automaker reneged on its plan to permit her to buy a dealership in western New York state and alleging that gender discrimination is an element.
Van Bortel and her brother, Howard Van Bortel, who’s a minority companion in two of her 4 dealerships together with Van Bortel Ford in East Rochester, N.Y., initially filed a lawsuit Nov. 15 in Monroe County, N.Y. The lawsuit alleges {that a} Ford consultant dedicated to Kitty Van Bortel round Sept. 8 that it will train its proper of first refusal on a dealership buy-sell involving the sale of Henderson Ford in close by Webster, N.Y., and assign her the acquisition and gross sales settlement beneath the identical phrases.
Automakers have the appropriate to say no an unique purchaser on a proposed dealership transaction and as an alternative assign the sale to a purchaser it chooses.
The lawsuit claims that Ford, nevertheless, ended up rejecting that preliminary deal outright after Kitty Van Bortel had signed a nondisclosure settlement with the automaker to evaluation the settlement’s phrases. Van Bortel’s criticism says that on about Sept. 17, two Ford representatives advised Kitty Van Bortel that the automaker determined to not approve the preliminary Henderson Ford deal and due to this fact could not assign the acquisition settlement to her, breaching their contract. However throughout that dialog, the Ford representatives verbally promised Kitty Van Bortel that if one other purchaser entered into a brand new deal to purchase Henderson Ford, that Ford would nonetheless train its proper of first refusal and assign the deal to her, in keeping with the criticism.
However in keeping with the criticism, a Ford consultant on Oct. 25 advised Kitty Van Bortel that Henderson Ford had entered into a brand new buy settlement to promote the shop to West Herr Automotive Group and that the automaker wouldn’t train a proper of first refusal. The Van Bortels allege of their criticism that that may be a breach of contract.
On Tuesday, the Van Bortels filed an amended criticism, including a gender discrimination declare and alleging that Ford violated the New York State Government Regulation beneath which Kitty Van Bortel is a part of a protected class as a feminine.
Ford has not but answered the lawsuit.
“Whereas we usually do not touch upon lively litigation, we categorically reject any assertion that we discriminated in opposition to any supplier based mostly on race or gender,” Ford spokesman Ian Thibodeau advised Automotive Information in an emailed assertion.
Kitty Van Bortel referred remark to her lawyer, Leonard Bellavia of the Bellavia Blatt legislation agency in Mineola, N.Y.
“She’s decided to press the lawsuit as a result of she feels that she’s been victimized,” Bellavia stated. “She’s been nothing however loyal to Ford for 20 years. She simply feels terribly victimized as each a supplier and a feminine.”
Final week, the increasing West Herr group of Orchard Park, N.Y., introduced it had acquired Henderson Ford. The corporate confirmed to Automotive Information that the transaction closed on Nov. 24.
Former Henderson Ford proprietor Randy Henderson declined to remark, and West Herr executives didn’t reply to Automotive Information questions in regards to the lawsuit. The dealership has been renamed West Herr Ford of Webster.
In a information launch, Henderson stated: “Out of the various sellers that expressed an curiosity in our enterprise, West Herr got here ahead as the appropriate match for our workers and household with nice values and integrity and I imagine will carry extra progress into the Webster and surrounding communities in addition to alternatives for our workers.”
Bellavia stated he and Kitty Van Bortel, considered one of Automotive Information’ 100 Main Girls within the North American Auto Business in 2005 and 2016 Time Vendor of the 12 months winner, discovered final week that the shop had been offered.
West Herr now has 4 Ford dealerships, together with one in Rochester about 16 miles away from Henderson Ford. The group, now with greater than 30 areas, acquired its begin in 1950 with a single Ford dealership and is majority owned by Scott Bieler, in keeping with its web site.
West Herr ranks No. 22 on Automotive Information‘ checklist of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 29,085 new autos in 2020.
“In bringing to the dealership our extra administration expertise and know-how, dramatically bigger new and used stock, we really feel we are able to develop the dealership and serve Webster and the encircling communities on the muse that Randy Henderson constructed,” Bieler stated in a information launch.
Van Bortel Ford is about eight miles from Henderson Ford.
Kitty Van Bortel has been a Ford supplier for 20 years, and the lawsuit claims that her shops have had “the best gross sales efficiency and customer support scores out there space.” The lawsuit, which claims she has obtained Ford’s President’s Award every of the previous 10 years, additionally contends that about 3,000 Van Bortel Ford prospects come from Henderson Ford’s territory.
She alleges in each the unique and amended complaints that she spoke with Edie Lukas, Ford’s retail community U.S. franchise supervisor, round Oct. 27 about their agreements and the way she had “fought to ascertain herself as a profitable feminine Ford supplier.”
“In response, Lukas acknowledged that ‘minority sellers usually are not a precedence proper now’ at Ford,” in keeping with the complaints.
Bellavia stated Kitty Van Bortel tried to get a gathering with Ford CEO Jim Farley earlier than submitting the lawsuit however that the proposal was rejected.
Bellavia stated it seems Ford “rushed” the Henderson Ford transaction by means of. Ford gave its approval and the transaction closed after nearly a month, which he stated is among the quickest timetables he is seen in his profession and comes amid the “busiest buy-sell processing interval ever.”
The Van Bortels are looking for damages to be decided in a trial, plus curiosity, prices and attorneys’ charges. Bellavia stated Ford may very well be accountable for misplaced earnings effectively into the long run, doubtlessly equal to hundreds of thousands of {dollars}.
Bellavia referred to as Ford a “backslapping brotherhood” and stated its motion “reeks of gender discrimination. Some other producer would have put the transaction on pause to research the potential lawsuit.”
Michael Martinez contributed to this report.