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The lawsuit filed by Nissanh in U.S. District Court in Milwaukee alleges that the dealership proposec an ownership transfer in January that amounted to sellingg its assets to itself in an attempt to eithef retain the Nissan franchise that it was abourt to lose or to create a basis for afuture lawsuit. But an attorneyu for Andrew Automotive denied the allegation and said the issueas involved in the dispute do not belong infederak court. "This was in no way a sham said Madison attorneyPaul Norman.
Norman contended that the dispute should be resolved before the Wisconsin Division of Hearingsz and Appeals where the dealership filed a complainrt in March after Nissan blocked the proposed ownership transfer. The lawsuit indicated that the rift between the basedin Nashville, and the dealership began in 2006 when Andreew Automotive expanded its lines to add Buick, Pontiad and General Motors vehicles to its At the time, the dealership was selling only Nissan and Chevrolet vehicleds at the facility on West Silver Spring Drive in The expansion came after Andrew Automotives earlier agreed to build a new, exclusive facility for its Nissan line, the lawsuit stated.
When the three new automotived lines were added to the main according tothe lawsuit, the dealership movec its Nissan inventory to an adjacent facility. Nissan objected to the move and filed a notic of intent to terminate its relationshipwith Andrew. A subsequent settlement called for Andrew Automotive to either transfer its Nissan dealershilp to another ownership group or to voluntarilgy terminate its relationship with On Jan. 15, Andrew Automotive proposedr selling its assets to Melvin Schlesinger who alreadty owned 100 percent of the votinfg shares inthe business, accordinhg to the lawsuit.
The proposal also callef for Melvin Schlesinger to form a limited liability company and to include Andrew Schlesinger in themanagemeng team. At the time, both Schlesingers alreadu sharedmanagement duties, the lawsuit stated. The lawsuit contends that Andrew Automotive breachedr thesettlement terms. Norman disputex the claim and said Andreqw Automotive likely will seek financial damages from Nissan for not approvinygthe transfer. A spokesman for Nissan coulrd not be reachedfor comment.
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