Nissan Motor Acceptance Corp. v. Superior Auto of Fremont LLC

Breach of Contract

Orange County

Superior Court Judge Thierry P. Colaw

Plaintiff’s Lawyers: Amnon Z. Siegel, Adithya Mani, Miller Barondess LLP

Defense Lawyers: Andrew S. Elliott, Duane M. Geck, Mark J. Kenney, Alan M. Ritchie, Severson & Werson APC

Facing off against a well-financed counter-defendant with a large legal team, Amnon Z. Siegel of Miller Barondess LLP employed a simple tactic to obtain a $256 million verdict for an auto dealership.

“My objective was to remain focused on the key issues, so I could keep the jury focused on the key issues,” Siegel said.

The tactic worked well.

Following a 12-day trial before now-retired Orange County Superior Court Judge Thierry P. Colaw, a jury awarded $121.9 million in compensatory damages after determining Nissan committed fraud by concealment and negligent misrepresentation. They also awarded $134.55 million in putative damages. Nissan Motor Acceptance Corp. v. Superior Auto of Fremont, JCCP 4613 (Orange Super. Ct., filed April 7, 2009).

It was Siegel’s first major trial as lead attorney, and the verdict came on a counterclaim filed in response to a breach-of-contract lawsuit by Nissan. He and associate Adithya Mani faced veteran trial attorney Mark J. Kenney of Severson & Werson.

Siegel’s client, Michael Kahn, owner of Superior Automotive Group, was his first witness, and Siegel said he withstood tough cross-examination from Kenney.

“It was a hard cross; it was cross by an experienced lawyer. But I think my client did a good job of staying calm and answering questions,” Siegel said. “He was definitely the most important witness to lay the foundation for the story of what happened here.”

Superior Automotive Group owed $1.65 million in delinquent payments to Nissan during the economic crisis in 2009 when Nissan cut financing, forcing him into bankruptcy. Nissan’s internal communications became key evidence for Siegel: emails showed Nissan officials plotting to shut down the company while telling Kahn their relationship was fine.

Kahn sold one of his dealerships and offered his house as collateral one day before Nissan terminated financing, Siegel said.

“At trial, it was very important for me to convey the once close relationship between the parties, and then how my client was betrayed by his financial partner during a very difficult recessionary period,” Siegel said. “It wasn’t just what he knew, it was also what he didn’t know.”

Colaw ordered a new trial in October because a juror didn’t disclose that she was involved in lawsuits. Siegel is appealing to the 4th District Court of Appeal.

— Meghann M. Cuniff