We know your business
Our lawyers have been delivering sophisticated legal counsel to motor vehicle dealerships, automotive advertising and lead generation technology companies for over 40 years.
Scali Rasmussen is the only California law firm with a Labor & Employment practice in which all of its attorneys know the retail automotive industry inside and out, while also advising and defending clients in other sectors. Our team, including former in-house counsel to both family-run and national auto groups, delivers strategic, efficient advice grounded in industry experience.
Nationally recognized in automotive law, we represent dealers, manufacturers, and emerging mobility companies. Our clients span the entire automotive ecosystem. From Fortune 500 dealer groups to family-owned dealerships, from mobility startups to established national brands, we are trusted by the businesses that drive the industry forward.
We also serve the companies that support them, including lenders, insurers, marketing firms, and trade associations, ensuring every link in the chain is protected.

Regulatory
- Regulatory & Compliance
- Privacy & Data Security
- Counsel on importing vehicles, including classics and specialty cars, with full regulatory support.
- Guidance on dealer licensing, renewals, compliance, and defense in licensing actions
- Representing dealers in audits and investigations by state and federal agencies
- Counsel on FTC guidelines and California advertising laws for compliant dealer marketing
- Global Business & U.S. Expansion
- Financial Services Compliance
- ADA Compliance
- Covid 19 Health and Safety Compliance
- Sales/F&I Training
Transactional & Strategic Counseling
- Outside General Counsel
- Franchise Law
- Buy Sells
- Dealer Financial Services & Valuations
- Commercial Lease Negotiations & Review
- Helping dealers choose and form the right legal structure to support growth and protect the business
- Corporate Governance
- Guiding dealers through complex transactions with strategic counsel from start to finish
- Vendor Agreement Drafting, Review
- Guidance on dealer licensing, renewals, compliance, and defense in licensing actions
- Outsourcing & Strategic Partnerships
- Board of Directors and Capital Structure Advising
- OFAC Counseling ( Office of Foreign Assets Control)
- Business Succession
Litigation
- Litigation & Trials
- Franchise Litigation
- Counsel for dealers facing consumer scrutiny, from compliance issues to high-stakes litigation
- Class and Representative Action Defense
- Ownership & Financial Disputes
- Antitrust
- Employment, Wage & Hour, PAGA Litigation
- Wrongful Termination & Retaliation Claims
- Trade Secret Protection & Retaliation Claims
- Arbitration & Mediation
- White Collar Criminal Defense & Government Investigations
- Wholesale Flooring Disputes & Workouts
- Unemployment & Disability Benefits Litigation
- EEOC & DFEH Investigations & Responses
- Employment Litigation
- Real Estate Litigation
- Business & Commercial Litigation
Tax & Compliance
- Italy Practice
- Private Wealth
- Payroll Tax Audits & Compliance
- CDTFA Investigations & Disputes
Labor & Employment
Real Estate
Driven to Succeed
We have guided dealerships through complex litigation, regulatory compliance, and major transactions. The examples below highlight our practical, industry-focused approach to solving problems.
Each matter reflects our commitment to protecting dealerships and helping them thrive in a changing market
Representative matters
- Drafting of various commercial agreements such as: invoices, vehicle customization agreements, and warranty to ensure regulatory compliance with California governmental agencies.
- Oversaw and steered homologation process with the National Highway Traffic and Safety Administration for sale to general public.
- Concurrent sale of real estate under the Ferrari dealership.
- Sale of a Ferrari dealership for $26 million.
- Sale of the Chevy, Ford, and Hyundai real estate parcels for $31 million.
- Stock sale of Hyundai dealership.
- Bundled asset sale of a Chevrolet and Ford dealership in the amount of $20 million.
- Lease of real estate for the Ford dealership with a monthly base rental value of $130 thousand.
- Asset sale of a Ford dealership.
- Asset sale of a Toyota dealership in the amount of $49 million.
- Concurrent sale of real estate under the Ford dealership.
- Asset sale of a Ford dealership.
- Asset purchase of a Hyundai dealership based in San Diego County.
- Represented a Collision Star franchisee on an asset sale.
- Dealership asset purchase of a BMW dealership and MINI dealership in the amount of $40 million.
- Dealership asset sale.
- Counseled clients on leave and accommodation issues, including FMLA/CFRA, pregnancy disability, and discretionary leave.
- Negotiated multiple nuisance-value settlements short of litigation in discrimination, harassment, retaliation, wrongful termination, and accommodation claims.
- Drafted customized Workplace Violence Prevention Plans for diverse client facilities.
- Directed and conducted workplace investigations involving hostile work environment, discrimination, retaliation, whistleblowing, and wrongful termination claims.
- Advised a high-net-worth individual in Central California on facilitating a generational transfer through the acquisition of a profitable motor vehicle dealership by younger family members. Provided guidance on the dealership M&A transaction while structuring intergenerational financing to make the acquisition feasible. The matter combined corporate and private wealth planning to ensure business continuity and achieve family wealth transfer objectives.
- Representing majority heirs of a U.S.-based legacy automotive portfolio in disputes with a minority shareholder, the firm is leveraging its franchise and M&A expertise to facilitate the $50M sale of the portfolio to a third-party buyer, resolving longstanding ownership and control issues.
- Advised a trustee of a Northern California trust holding a significant regional employer and retail enterprise. Developed an ownership transfer and governance plan that balanced transferring business ownership to a key employee while maintaining appropriate trustee oversight. Crafted strategies to integrate family members and beneficiaries into management roles, safeguarding family wealth and ensuring continuity of business operations.
- Represented a family office and its portfolio company in a high-stakes private arbitration in Los Angeles. The dispute involved alleged breaches of warranty and misrepresentation regarding representations and omissions about future business opportunities and profitability in connection with the acquisition of multiple retail outlets valued at over $100 million. The arbitration included more than a week of testimony and was subsequently reviewed by a three-member arbitration panel following the initial decision
- Regularly represented automotive dealerships in disputes with flooring lenders regarding inventory financing arrangements
- Design and implement monthly Finance & Insurance training and compliance programs to assist California vehicle dealerships to maintain alignment with evolving consumer protection laws.
- Represent financial institutions in defense against consumer protection claims related to repossession, credit reporting, and debt collection practices, with expertise in the Rees-Levering Automobile Sales Finance Act (Cal. Civ. Code § 2983.2), the federal Fair Debt Collection Practices Act (FDCPA), the California Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788 et seq.), the California Business & Professions Code §§ 5700–7511, and the Uniform Commercial Code – Division 9.
- Successfully defended a dealership in a commercial dispute over a Lamborghini Urus sold via dealer-to-dealer transaction. After a lienholder reported the vehicle stolen, the buyer sued for breach of contract and promissory fraud. Following a bench trial, the court found no liability and awarded the plaintiff nothing, with each party covering their own costs.
- Successfully opposed an appeal seeking to compel arbitration in a matter where the opposing party had actively litigated, raising waiver concerns. The appellate court affirmed the trial court’s denial, agreeing that the right to arbitrate had been waived, preserving the client’s position and avoiding the risks and inconsistent rulings associated with arbitration.
- Successfully defended a dealership client named in multiple lawsuits following a fatal auto incident involving a previously sold vehicle. Plaintiffs alleged liability based on the dealership’s role in the sale. After confirming full DMV compliance, our team served a Code of Civil Procedure § 128.7 motion with Safe Harbor notices. As a result, all claims were voluntarily dismissed, and the dealership avoided litigation, liability, and attorney’s fees.
- Successfully resolved a property damage dispute involving a luxury vehicle that was struck by an employee of a neighboring dealership while parked on our client’s service lot. Although the neighboring dealership initially denied liability, strategic negotiation led to a resolution in which they agreed to cover all payments to the customer. Our client paid no settlement funds, incurring no financial liability beyond internal costs.
- Successfully defended a dealership in arbitration over a disputed sale of a Maserati MC20. The claimant alleged breach of contract after financing fell through. The arbitrator found no contractual obligation to complete the sale and awarded zero damages, relying heavily on the legal arguments presented in our briefing.
- Obtained a unanimous jury verdict in the Superior Court of the State of California County of San Diego before Honorable Carolyn Caietti where Plaintiff alleged (1) Disability Discrimination; (2) Failure to Engage in the Interactive Process, (3) Failure to Accommodate Disability; (4) Retaliation and (5) Harassment against Car Dealership. Michael Ganatta v. JKC Palm Springs Automotive, Inc.; No. 37-2020-00028633-CU-WT-CTL
- Analysis and calculation of potential exposure for multiple wage/hour class action and PAGA cases resulting in expedient and favorable resolutions for clients.
- Achieved favorable settlement of a contentious FEHA lawsuit while a dispositive motion for summary judgment was pending, mitigating litigation risk and exposure.
- Design and implement compensation plans, workplace policies, and compliance procedures tailored to California’s dynamic employment law landscape.
- Obtained dismissal of class allegations and negotiated favorable resolution of a 300-employee PAGA action through the strategic use of employee survey data.
- Obtained dismissal of class allegations and negotiated favorable resolution of a 300-employee PAGA action through the strategic use of employee survey data
- Regularly defend employers in complex FEHA litigation involving claims of discrimination, harassment, and retaliation. Frequently achieve favorable outcomes—often through early settlements prior to costly discovery or via strategic dispositive motions such as summary judgment
- Obtained favorable settlement for dealership defendant where an elderly customer and his disabled daughter sued dealership under the Elder Abuse and Dependent Adult Civil Protection Act among other causes of action, alleging the autonomous driving systems in new car did not function as advertised.
- Obtained a defense verdict after trial in dispute between two dealerships over a Lamborghini Urus sold via dealer-to-dealer transaction. After a lienholder reported the vehicle stolen, the buyer sued for breach of contract and promissory fraud. Following a bench trial, the court found no liability and awarded the plaintiff nothing, with each party covering their own costs.
- Successfully defended a dealership client named in multiple lawsuits following a fatal auto incident involving a previously sold vehicle. Plaintiffs alleged liability based on the dealership’s role in the sale. After confirming full DMV compliance, our team served a Code of Civil Procedure § 128.7 motion with Safe Harbor notices. As a result, all claims were voluntarily dismissed, and the dealership avoided litigation, liability, and attorney’s fees.
- Settled property damage dispute involving a luxury vehicle that was struck by an employee of a neighboring dealership while parked on our client’s service lot. Although the neighboring dealership initially denied liability, strategic negotiation led to a resolution in which they agreed to cover all payments to the customer. Our client paid no settlement funds, incurring no financial liability beyond internal costs.
- Successfully defended a dealership in arbitration over a disputed sale of a Maserati MC20. The claimant alleged breach of contract after financing fell through. The arbitrator found no contractual obligation to complete the sale and awarded zero damages, relying heavily on the legal arguments presented in our briefing.
- Successful resolution of dozens of traumatic brain injury cases following depositions of experts, including neurologists, neuro-psychiatrists, psychologists and experts in vocational rehabilitation.
- Nominal settlement, while motion for summary judgment pending, in multi-defendant wrongful death case where jury, thereafter, allocated substantial fault to client resulting in multi-million dollar savings to client.
- Successfully settled new vehicle dealer class action for Vehicle Code violations resulting in significantly reduced damages exposure.
- Blocked factory's attempted denial of auto dealer franchise after 3 week trial in Orange County. Co-chaired a three-week bench trial representing an automobile dealership, resulting in a defense judgment that barred the manufacturer’s attempted denial of the automotive franchisee’s application for a new franchise, and obtained nearly $300,000 in attorney’s fees for the dealer.
- Blocked termination of auto dealer franchise after 3 week hearing before the NMVB. Obtained a decision in the dealer’s favor before the New Motor Vehicle Board after a three-week hearing involving a protest by an automobile dealership of the manufacturer’s attempted addition of a new point with the dealer’s relevant market area.
- Successful resolution of multimillion dollar warranty chargeback disputes on behalf of auto dealers. Litigated multimillion dollar warranty chargeback disputes between franchisors and franchisees.
- Franchise disputes over attempted factory termination, relocation or addition of auto dealership franchises. Advised clients on and negotiated franchise disputes concerning warranty audits and warranty chargebacks, add points, relocations and terminations.
- Buy/sell representation of auto dealerships. Supervised the purchase and sale of retail automotive franchises and body shops.
- Wage and hour class action defense of auto dealers. Litigated wage and hour class actions for auto dealers and other retailers.
- Labor and employment advice and counsel. Advised and counseled auto dealers and other retail and entertainment clients on effective employment policies and making adverse employment decisions.
- Blocked confirmation of employee's arbitration award against former employer. After executive employee obtained arbitration award against employer, blocked confirmation of award against employer-related entities by utilizing successful procedural strategies.
- Successful resolution of numerous discrimination, harassment and retaliation claims against auto dealers and others. Litigated and arbitrated numerous employment discrimination and harassment lawsuits against auto dealers and others. Obtained numerous successful settlements in employment discrimination claims for media and entertainment and retail clients by employing strategies designed to minimize settlement value.
- Publically-held automobile dealer group restructuring litigation. The Firm is currently defending a publicly-traded auto dealer group’s dealership in an age discrimination lawsuit brought by a former employee. The plaintiff was affected by a facility-wide restructuring that resulted in discharge or reassignment of a number of management-level employees. At issue in this case are the company’s legitimate business reasons for the restructuring in the dealership’s highly competitive retail environment. The dealership’s case focuses on the location’s financial performance and customer service objectives as well as the plaintiff’s individual performance. This litigation is currently in the discovery phase and will go to arbitration in 2016.
- Automotive service technician and service advisor wage and hour class action. Scali Rasmussen has successfully resolved several wage and hour class actions brought against its dealership clients. It is currently defending a California automobile dealership against wage and hour claims made against it in a class action brought by its service technicians. Scali Rasmussen is representing another California automobile dealership against wage and hour claims made against it in a class action brought by its service advisors, one of the first wage and hour class actions brought by service advisors against an automobile dealership in California.
- FCRA and ECOA representation. Litigated and resolved several claims against auto dealers and other retailers under the Fair Credit Reporting Act and Equal Credit Opportunity Act.
- Undefeated record of obtaining summary judgment for auto dealers. Obtained numerous summary judgments on behalf of auto dealers and other retailers in consumer fraud cases.
- Defeated class certification against auto dealer for alleged illegal F&I practices. Obtained pre-certification dismissal of consumer class action Truth In Lending Act and Automobile Sales Finance Act claims by developing strategies that are used today by California attorneys in defending various truth-in-lending and statutory claims against automobile dealerships.
A depth of expertise











