AFS Secures Trial Win and $1.18 Million in Damages in Dealership Sale Dispute

In late 2021, M5 Automotive, agreed to purchase Kastner Honda, a dealership in Napa, along with the underlying real estate in a proposed $16 million sale structured through two separate agreements, an Asset Purchase Agreement and a Real Estate Purchase Agreement. In March 2022, Kastner Honda’s owner terminated the agreements despite M5 Automotive’s willingness and readiness to close once manufacturer approval was obtained, and instead, sold the dealership and real estate to another buyer for $17.5 million.   M5 Automotive filed suit for breach of contract, fraud, and wrongful termination of the agreements in May 2022.  

Finally, in October 2025, after a two-week jury trial and three unsuccessful post-trial motions filed by Kastner Honda,  a Napa County court ruled in favor of M5 Automotive, upholding the jury’s finding that Kastner Automotive Inc. and William Kastner Jr. breached their agreement to sell the dealership to M5 Automotive.  The jury awarded M5 Automotive $1.185 million in lost profit and out of pocket damages.

The AFS team was led by Victor Danhi, and included Charles Gallaer, John Bronstein, Gary Brophy, Susanne Boniadi, and Ryan Therian, with assistance over the life of the case from, Barbara Kazior and Natalie Moore.