Deal in McAllister/Nissan lawsuit
Saturday, April 28, 2012
JACKSON, Miss. (AP) — A federal judge approved a deal Friday in which a $1.5 million judgment against former Ole Miss and New Orleans Saints running back Deuce McAllister will be settled in accordance with a confidential agreement with Nissan Motor Acceptance Corp.
U.S. District Judge Henry Wingate in Jackson signed off on the deal related to a 2009 lawsuit over McAllister's failed Mississippi car dealership.
McAllister attorney Joe Roberts said Friday he can't discuss the terms of the settlement because of a confidentiality agreement. NMAC lawyer Chad Hammons referred calls to Nissan spokesman Steve Parrett, who had no comment.
The dealership in Jackson closed in 2009 and filed for Chapter 7 liquidation under federal bankruptcy law. NMAC sued McAllister and Deuce McAllister Motors LLC in October 2009 for more than $1.5 million, alleging the dealership defaulted on payments and exceeded credit limits
In court records, NMAC said it found financial problems with the dealership during an audit in 2008. The company said it assigned an on-site monitor and eventually reinstated the dealership's credit. But, the lawsuit said, while the dealership continued to sell cars, it did not repay NMAC and its debts grew.
The dealership operated in Chapter 11 for a time before agreeing to liquidate its remaining assets.
McAllister filed a counter claim to the Nissan lawsuit in which he said the company knew he "was a young professional athlete inexperienced in the motor vehicle sales business" and did little to help his dealership succeed.
McAllister said Nissan Motor Acceptance withheld information that the dealership wasn't likely to be profitable in the area and neglected to warn him that one of his partners had done business with a Nissan-related dealership before and "was unsuitable for the management position."
McAllister was a football star at the University of Mississippi. He was drafted by the Saints in the first round of the NFL draft in 2001 and replaced Ricky Williams as the team's featured running back. Known for his power running, McAllister achieved stardom in the league but was hampered by knee injuries in the later years of his career. The Saints released him in 2009.
Off the field, McAllister has invested heavily in his native Mississippi, including the Nissan business, a luxury car dealership and high-end real estate.