Nissan North America Files Lawsuit Against Terminated Dealership

Nissan North America is taking legal action against a terminated dealership located in Gallup, New Mexico. The lawsuit alleges that the dealership, Ed Corley Nissan, has been using Nissan’s trademarks, service marks, and signage without authorization.

The lawsuit includes claims of trademark infringement, breach of contract, and unfair trade practices. It states that Ed Corley Nissan has refused to allow access to the premises for sign removal and has been advertising and selling used Nissan vehicles at the same location.

The termination of the franchise took effect in May 2022, but the dealership’s LinkedIn, Instagram, and Facebook pages are still active. Additionally, Corley Nissan LLC is listed as an active corporation on the New Mexico Department of State website.

Legal Action and Damages Sought

The lawsuit seeks an injunction and damages from Ed Corley Nissan. Nissan claims that the dealership owes $763,375 for 25 vehicles purchased in 2021, as well as an additional $152,994 for parts, tools, and services.

The complaint also mentions Ed Corley Nissan’s failure to pay the 1 percent monthly delinquency charge outlined in its sales and service agreement.

The lawsuit, filed on August 10 in federal court, accuses Ed Corley Nissan of illegally using Nissan’s trade and service marks at its former store location, in its email address, advertising, and website. The suit claims that this unauthorized use has created confusion and deceived consumers, creditors, suppliers, and others.

In response to the lawsuit, a Nissan spokesman emphasized the company’s commitment to protecting its brand and ensuring a positive customer experience. They stated that Nissan limits the use of its trademarks to authorized dealerships and will take action when necessary.

No comments were available from a lawyer or representative of the former dealership at the time of publication.