In the automotive world, where manufacturers and dealerships often navigate a complex web of contracts and power dynamics, a recent court ruling has sent ripples through the industry. Auto Dealership Partners (ADP), a Little Rock-based dealer group co-owned by Larry Crain Jr. and Heath Campbell, has emerged victorious in a legal battle against Ford Motor Company, securing an $18 million judgment. The case decided in Pulaski County Circuit Court after a five-day trial, shines a spotlight on the tensions between corporate giants and independent dealers—and raises questions about fairness in an industry built on trust.
The Heart of the Dispute
At the core of this saga is Ford’s controversial use of its “right of first refusal” (RoFR), a contractual clause that allows manufacturers to step in and redirect a dealership sale. ADP had its sights set on acquiring a Ford dealership from the Penske organization as part of a broader deal that also included a Chrysler dealership. The plan seemed straightforward: ADP would pay $4 million in goodwill for the Ford location, with no goodwill assigned to the Chrysler site. But what unfolded was a tangled series of manoeuvres that left ADP reeling—and ultimately victorious in court.
Ford, it turns out, had other ideas. Internal communications revealed a calculated effort to derail ADP’s purchase. On November 2, 2018, Matthew Atkinson, then Ford’s Memphis Region General Sales Manager, emailed Edie Lucas, a Ford Contracts Manager, with a heads-up about the deal. “The buyer, as feared, is Larry Crain, Jr.,” he wrote. “His family is nearly entirely responsible for our failures in Little Rock. I can’t imagine a circumstance where he could (or should) be approved.” The email hinted at a deeper reluctance to let ADP, tied to Crain’s broader automotive empire, take the reins.
What followed was a bait-and-switch. Ford insisted that the $4 million goodwill be split evenly between the Ford and Chrysler dealerships—$2 million each. Crain, believing he was securing both properties, agreed. Then, Ford pulled the plug on the Ford dealership sale by exercising its RoFR, redirecting the deal to another buyer. The Chrysler deal, however, went through, leaving ADP stuck with an unexpected $2 million bill for a single dealership it hadn’t planned to value that way. It was a move that Pulaski County Circuit Court Judge Timothy Davis Fox would later describe as backed by “overwhelming evidence” of “deceit and fraud.”
The Court’s Ruling: A $18 Million Statement
After a meticulous review, Judge Fox didn’t hold back. The dealer group won an $18M judgment against Ford—a figure that includes $16 million in punitive damages, signalling the court’s intent to punish what it saw as egregious misconduct. The remaining $2 million covered ADP’s direct losses, but the hefty punitive award underscored a broader message: manufacturers can’t wield their contractual power to manipulate deals at the expense of dealers.
For Crain and Campbell, the ruling was more than a financial windfall—it was vindication. “This verdict upholds the principles of fairness in the automotive industry,” Crain said in the aftermath. “It ensures that manufacturers can’t twist transactions to hurt dealers who are just trying to do business.” The decision resonates beyond ADP, offering a glimmer of hope to dealerships nationwide that feel squeezed by the weight of corporate influence.
Behind the Scenes: A Tale of Trust and Triumph
The details of the case paint a vivid picture of mistrust bubbling beneath the surface. Atkenson’s email wasn’t just a casual FYI—it was a red flag waved within Ford’s ranks, suggesting that Crain’s involvement was a dealbreaker from the start. Whether it was personal animosity or a strategic play to favour another buyer, the court found Ford’s actions crossed a line. By leveraging its RoFR to block ADP while simultaneously forcing a restructured goodwill split, Ford left the dealer group in a financial lurch—a misstep that cost them dearly.
ADP’s journey through this ordeal wasn’t just about the money. The group, which operates Campbell Chrysler Dodge Jeep Ram in Benton alongside its Ford locations, had to navigate the fallout of a fractured deal while keeping its operations humming. For Crain, who also oversees the Crain Automotive Group with 16 franchised dealerships across Arkansas, the stakes were high. Yet, he emerged with a renewed sense of purpose. “This is a win for all dealerships that expect honesty in their dealings with manufacturers,” he noted.
Ford’s Response: A Fight Far From Over
Ford, for its part, isn’t backing down quietly. In a statement to CDG News, the company maintained its stance: “We believe Ford complied with the law and its contractual obligations. We will appeal this decision.” The appeal process could drag on, potentially altering the outcome. But for now, the dealer group winning $18M judgment against Ford stands as a bold headline—one that Ford’s legal team will need to reckon with as they prepare their next move.
The automaker’s insistence on appealing suggests confidence in its interpretation of the RoFR clause. Yet, the court’s emphasis on deceit and fraud complicates that narrative. Was this a legitimate exercise of contractual rights, or a deliberate scheme to sideline ADP? The answer may hinge on how higher courts view the evidence—and whether they see Ford’s actions as business as usual or a breach of trust.
What It Means for the Industry
The dealer group wins $18M judgment against Ford isn’t just a one-off story—it’s a flashpoint in an ongoing tug-of-war between manufacturers and dealers. Rights of first refusal have long been a tool for automakers to maintain control over their networks, ensuring dealerships align with corporate goals. But this case exposes the risks when that power is perceived as overreach. For dealers, it’s a reminder that the fine print in contracts can become a battleground—and that fighting back can pay off.
Across Arkansas and beyond, dealerships are watching closely. ADP’s victory could embolden others to challenge questionable practices, particularly when they feel strong-armed by manufacturers. At the same time, it might prompt automakers to rethink how they wield clauses like the RoFR, knowing the courts won’t hesitate to step in when the scales tip too far.
ADP’s Road Ahead
Despite the legal wrangling, ADP isn’t turning its back on Ford. Crain Ford Jacksonville and Crain Ford Little Rock remain open for business, serving customers with the same commitment that’s defined the group’s reputation. “Our focus is on delivering top-tier service and upholding the integrity of our business,” Crain said. It’s a pragmatic stance—acknowledging the win while keeping the partnership alive.
For Crain and Campbell, the dealer group winning $18M judgment against Ford is a milestone, not an endpoint. Their operations, spanning Ford and Chrysler brands, continue to thrive, bolstered by a reputation for resilience. The $18 million will undoubtedly help, but it’s the principle behind the ruling that seems to fuel their drive. As Crain put it, “We remain committed to advocating for transparency in the automotive industry.”
A Broader Lens: Fairness in Focus
Zooming out, this case taps into a universal theme: the struggle for fairness in uneven power dynamics. ADP, a regional player, took on Ford, a global titan, and came out on top—at least for now. The dealer group wins $18M judgment against Ford isn’t just about one dealership or one contract; it’s about the rules of the game. When those rules get bent, the fallout can be costly, as Ford learned the hard way.
For consumers, the story might feel distant—after all, it’s not about the cars on the lot or the prices at the pump. But it’s a peek behind the curtain of an industry that shapes how vehicles reach the road. Dealerships like ADP are the bridge between manufacturers and buyers, and when that bridge wobbles, everyone feels the tremor.
What’s Next?
As Ford gears up for its appeal, the dealer group wins $18M judgment against Ford will stay in the spotlight. Will the higher courts uphold Judge Fox’s ruling, or will they see Ford’s actions in a different light? For now, ADP can savour the win—a hard-fought triumph that proves even the biggest players aren’t untouchable. The automotive world is watching, and the echoes of this case might just reshape how business gets done.
In Little Rock, the mood is one of quiet resolve. Crain and Campbell aren’t popping champagne corks—they’re back at work, running dealerships and serving customers. The dealer group winning $18M judgment against Ford is a feather in their cap, but it’s clear they’re not resting on it. For them, and the industry, the road ahead is wide open—and full of possibilities.