ELLSWORTH – Cars, trucks and SUVs are still for sale at Dave Gould Ford, but the automobile retailer at the triangle of Routes 1 and 3 in Ellsworth now faces tighter commerce restrictions.
A court order signed this week by Ellsworth District Court Judge Bernard Staples required Dave Gould Ford to turn over all keys and vehicle titles to Ford Motor Credit Co.
The dealership can still sell vehicles, but must turn over half of all proceeds to FMCC, which recently filed a civil lawsuit claiming Dave Gould Ford owed more than $2 million.
The decision was made at a hearing Tuesday, which neither owner Dave Gould nor his attorney, Nathan Dane III, attended.
Bruce Sleeper, a Portland attorney representing FMCC, told the judge that Gould would neither consent to nor oppose the agreement.
Dane sent a statement to the judge indicating Gould would not attend the hearing, and went on to say:
“The damage done to my client’s business simply from the initiation of this proceeding has been unnecessarily severe. My client continues to work to resolve any remaining differences that may exist with the plaintiff.”
According to the original civil complaint, FMCC claimed the Ellsworth dealer failed to pay back cash advances that were used to buy vehicles that were, in turn, sold.
On Sept. 14, Judge Staples issued a temporary restraining order that required Dave Gould to stop selling vehicles that belong to Ford until the matter is resolved.
When Dave Gould opened in Ellsworth in 1998, it signed an automotive wholesale agreement with Ford Motor Credit Co., court documents state. The agreement, among other things, allowed Dave Gould to finance some of its purchases and allowed FMCC to provide advances when necessary.
The civil complaint alleges that Dave Gould has failed to pay back several of those advances, including accrued interest.
Court documents also state that Gould spent proceeds that were supposed to be held in trust for FMCC.
All told, FMCC is looking to recoup $2.4 million.
What effect the complaint has had on business is not clear, and Gould and his attorney have declined to comment.
The Maine Office of Consumer Credit Regulation, however, has received several complaints regarding Dave Gould Ford within the last few weeks.
The state Attorney General’s Office and Ellsworth Police Department also have received complaints.
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