FDD Items 3 & 4 · 2024 filing
Dealer Specialties litigation history
What Dealer Specialties disclosed about lawsuits, arbitrations and bankruptcy in the 2024 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Three matters: (1) DSI v. Tyner (Case No. A 2400654, pending) – injunctive relief for breach of restrictive covenants by former franchisee; (2) DS and DSI v. Piper (1:18-cv-00525, dismissed Sept. 2021) – restrictive covenant breach, trade secrets, fraud against former franchisee; (3) DS and DSI v. Car Data 24/7 / Lindsey (three related filings 2015–2016) – terminated for non-payment, restrictive covenant breach; final award $1,358,889.24 against Car Data; judgment $2,560,063.66 against Ell Jay Lindsey; resolved via bankruptcy order Sept. 2022
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Dealer Specialties International, Inc. v. Melissa G. Tyner
pendingBrought against a franchisee · Court of Common Pleas, Hamilton County, Ohio · A 2400654
“Dealer Specialties International, Inc., v. Melissa G. Tyner, Court of Common Pleas, Hamilton, County, Ohio, Case No. A 2400654.”Page 7 of the 2024 FDD, Item 3
Concluded (2)
Dealer Specialties, Inc. and Dealer Specialties International, Inc. v. Mark Piper
dismissedBrought against a franchisee · filed 2018 · U.S. District Court, Southern District of Ohio · 1:18-cv-00525
“… United States District Court, Southern District of Ohio, Case No. 1:18-cv-00525 (Judge Michael Barrett).”Page 7 of the 2024 FDD, Item 3
Dealer Specialties, Inc. and Dealer Specialties International, Inc. v. Car Data 24/7, Inc., Gary Lindsey, Sherry Lindsey and Ell Jay Lindsey; and related AAA arbitration and confirmation suit
judgmentBrought against a franchisee · filed 2015-03-11 · U.S. District Court, Southern District of Ohio; American Arbitration Association · 1:15-cv-170-TSB; AAA 01-15-0002-9581; 1:16-cv-00499
“Dealer Specialties, Inc. and Dealer Specialties International. Inc. v. Car Data 24/7. Inc., Gary Lindsey, Sherry Lindsey and Ell Jay Lindsey, United States District Court, Southern District of Ohio, Case No. 1: 15-cv-170-TSB (filed March 11, 2015);”Page 8 of the 2024 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosure signals that moved the score
How this shows up in the verdict
- Aggressive litigation history: Three disclosed cases including breach of non-compete claims suggest enforcement disputes and potentially restrictive covenants
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?