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Charles Morgan Sues Partner in Lotus Auto Deal

2 min read

The wheels came off a deal to start an exotic car dealership in California that had the backing of Charles Morgan, the former chairman and CEO of Acxiom Corp.

Morgan and his adult son, Rob Morgan, are suing the third partner in the car dealership deal, Thomas J. Haacker of Palm Springs, California.

The Morgans’ lawsuit, filed in Pulaski County Circuit Court, pulls back the curtain on the details of the partnership, which was supposed to provide the sale, maintenance and repairs of exotic cars in Orange County, California.

The three met in Little Rock on Oct. 21, 2013, to iron out the partnership. Each Morgan would own 25 percent of the company and Haacker would have a 50 percent stake.

Haacker is the founder and chairman of Priority Posting & Publishing Inc. of Tustin, California, which is tied to foreclosure action services. It has $85 million in annual revenue, according to exhibits filed in the case.

In November 2013, the partners started negotiations to buy the Lotus of Orange County franchise dealership owned by Orange County British Motor Cars LLC.

But in June 2014, Lotus denied their application because it was too close to another Lotus dealership, according to the lawsuit.

Meanwhile, the three had formed Truspeed Partners Inc. The partnership had rented space for the dealership and called for the members to put money into the company. Haacker was supposed to put in $1 million. In July 2014, he contributed $500,000, the lawsuit said.

Even thought the Lotus deal had stalled, the partners were expected to move forward, according to the lawsuit, filed earlier this month by Allen Dobson of the Little Rock firm Baxter Jewell & Dobson.

But weeks later, in September 2014, Haacker told the Morgans that he was leaving the partnership. The lawsuit didn’t say why.

The Morgans said Haacker has been reimbursed $350,000, but Rob Morgan has continued to pay bills tied to the partnership, such as monthly rent.

The Morgans want a judge to say that Haacker is on the hook for half the debts of the partnership “due to his wrongful dissociation,” the lawsuit said. The Morgans are also suing Haacker for financially benefitting from the deal and are seeking an unspecified amount of money for unjust enrichment.

An attorney for Haacker said that he hasn’t been served with the lawsuit and wouldn’t comment on the case.

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