Wednesday, January 22, 2025
19.0°F

Deal in McAllister/Nissan lawsuit

Holbrook Mohr | Hagadone News Network | UPDATED 12 years, 8 months AGO
by Holbrook Mohr
| April 29, 2012 9:00 PM

JACKSON, Miss. - A federal judge approved a deal Friday in which a $1.5 million judgment against former Ole Miss and New Orleans Saints running back Deuce McAllister will be settled in accordance with a confidential agreement with Nissan Motor Acceptance Corp.

U.S. District Judge Henry Wingate in Jackson signed off on the deal related to a 2009 lawsuit over McAllister's failed Mississippi car dealership.

McAllister attorney Joe Roberts said Friday he can't discuss the terms of the settlement because of a confidentiality agreement. NMAC lawyer Chad Hammons referred calls to Nissan spokesman Steve Parrett, who had no comment.

The dealership in Jackson closed in 2009 and filed for Chapter 7 liquidation under federal bankruptcy law. NMAC sued McAllister and Deuce McAllister Motors LLC in October 2009 for more than $1.5 million, alleging the dealership defaulted on payments and exceeded credit limits

In court records, NMAC said it found financial problems with the dealership during an audit in 2008. The company said it assigned an on-site monitor and eventually reinstated the dealership's credit. But, the lawsuit said, while the dealership continued to sell cars, it did not repay NMAC and its debts grew.

The dealership operated in Chapter 11 for a time before agreeing to liquidate its remaining assets.

McAllister filed a counter claim to the Nissan lawsuit in which he said the company knew he "was a young professional athlete inexperienced in the motor vehicle sales business" and did little to help his dealership succeed.

McAllister said Nissan Motor Acceptance withheld information that the dealership wasn't likely to be profitable in the area and neglected to warn him that one of his partners had done business with a Nissan-related dealership before and "was unsuitable for the management position."

McAllister was a football star at the University of Mississippi. He was drafted by the Saints in the first round of the NFL draft in 2001 and replaced Ricky Williams as the team's featured running back. Known for his power running, McAllister achieved stardom in the league but was hampered by knee injuries in the later years of his career. The Saints released him in 2009.

Off the field, McAllister has invested heavily in his native Mississippi, including the Nissan business, a luxury car dealership and high-end real estate.

MORE IMPORTED STORIES

Gilbert Nissan sued for $3.4 million over contract
Columbia Basin Herald | Updated 11 years, 11 months ago
Gilbert Auto Group files for Chapter 11
Columbia Basin Herald | Updated 11 years, 10 months ago
China auto show forging ahead under anti-virus controls
Columbia Basin Herald | Updated 4 years, 3 months ago

ARTICLES BY HOLBROOK MOHR

US tourists stranded abroad desperate as they try to return
March 21, 2020 6:16 p.m.

US tourists stranded abroad desperate as they try to return

Linda Scruggs and Mike Rustici trained for months to hike the winding trails leading to Machu Picchu's complex of Inca ruins. So they were thrilled when their flight landed earlier this month in the Peruvian capital.

Out of medication, US woman finally boards flight from Peru
March 25, 2020 8:12 p.m.

Out of medication, US woman finally boards flight from Peru

A 33-year-old American woman running out of her life-saving medication to treat her auto-immune disease finally boarded a flight home Wednesday after being stuck in Peru for about 10 days, but hundreds of other U.S. citizens remained stranded after the South American nation closed its borders due to the coronavirus pandemic.

US tourists stranded abroad desperate as they try to return
March 21, 2020 3:16 p.m.

US tourists stranded abroad desperate as they try to return

Linda Scruggs and Mike Rustici trained for months to hike the winding trails leading to Machu Picchu's complex of Inca ruins. So they were thrilled when their flight landed earlier this month in the Peruvian capital.