Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-01783/USCOURTS-cand-3_07-cv-01783-4/pdf.json

Parties Involved:
Ford Motor Credit Company
Plaintiff
Sebastopol Ford, Inc.
Defendant

Document Text:

United States District Court

For the Northern District of California

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

FORD MOTOR CREDIT COMPANY, 

Plaintiff,

v.

SEBASTOPOL FORD, INC.,

Defendant.

___________________________________/

No. C-07-1783 JSW (EMC)

ORDER GRANTING FORD MOTOR

CREDIT COMPANY’S EX PARTE

APPLICATION FOR TEMPORARY

RESTRAINING ORDER

Submitted Ex Parte

The Ex Parte Application of Ford Motor Credit Company, a Delaware corporation (“Ford

Credit”) for the issuance of a temporary restraining order came on by an ex parte application before

the Honorable Jeffrey S. White, United States District Court for the Northern District of California. 

The Court, having reviewed the application of Ford Credit for a temporary restraining order,

the supporting declarations and memorandum of points and authorities and the complaint on file in

this action, and any opposition filed to the application, finds that Ford Credit has established that it

is entitled to the issuance of a temporary restraining order and has established the probable validity

that there is an immediate danger that the vehicles identified on the attached Exhibit “A,” the other

personal property described in the attached Exhibit “B” and the proceeds from the sale of any such

vehicle or other personal property (collectively the “Collateral”), may become unavailable to levy

and may become substantially impaired in value, and

GOOD CAUSE APPEARING, THEREFOR,

Case 3:07-cv-01783-JSW Document 30 Filed 04/19/07 Page 1 of 5
United States District Court

For the Northern District of California

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IT IS HEREBY ORDERED that:

1. Defendant, Sebastopol Ford, Inc., a California corporation, (“Sebastopol Ford”)

received timely and proper notice of this ex parte hearing on plaintiff Ford Credit’s Application for

Writ of Possession and Injunctive Relief under the Court’s Local Rules. 

2. Ford Credit has established the probable validity of its security interest in the vehicles

identified on the attached Exhibit “A” and to all of Sebastopol Ford’s parts, accessories, furniture,

fixtures, machinery, supplies and other equipment, contract rights, chattel paper and general

intangibles, and that defendant Sebastopol Ford is in default on its loan obligations owing to Ford

Credit as set forth in the moving papers. The Vehicles and other personal property are collectively

referred to as the “Collateral” below.

3. Ford Credit has established that the Collateral is located at 6791 Sebastopol Avenue,

Sebastopol, California 95472 (the “Dealership”).

4. Sebastopol Ford may sell or lease the Collateral in the ordinary course of business

only as provided in this Order:

a. At the time of any retail sale or lease of any Vehicle, Sebastopol Ford shall

immediately notify Ford Credit of such sale or lease via email to the following

email address: jpolley@ford.com and by promptly delivering or faxing to

Ford Credit a true copy of the written contract of such retail sale or lease. 

b. Sebastopol Ford shall turn over possession to Ford Credit and Ford Credit

shall maintain physical custody of titles for all vehicles in which Ford Credit

has a lien or security interest, whether or not financed by Ford Credit. In

doing so, Ford Credit shall not interfere with transfers in the ordinary course

of business.

c. Within the earlier of five business days from retail sale or lease of a Vehicle

identified on the attached Exhibit “A,” or one business day from Sebastopol

Ford’s receipt of any of the sale proceeds for any retail sale or lease of a

Vehicle, including any Vehicle identified on Exhibit “A” that has been sold or

leased on or before the date of this Order for which defendant Sebastopol

Case 3:07-cv-01783-JSW Document 30 Filed 04/19/07 Page 2 of 5
United States District Court

For the Northern District of California

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Ford received proceeds before or after the date of this Order, Sebastopol Ford

shall immediately and forthwith remit to Ford Credit by electronic funds

transfer all amounts received by Sebastopol Ford up to the amount advanced

by Ford Credit to Sebastopol Ford to acquire the vehicle (the “Advanced

Price”). Any proceeds in excess of the Advanced Price on a particular vehicle

may be retained by Sebastopol Ford to use towards its operating expenses. 

Ford Credit’s security interest continues to attach to the proceeds in excess of

the Advanced Price to the extent they are not used to cover operating

expenses;

d. Within the earlier of five business days from sale or lease of a vehicle not

identified on the attached Exhibit “A” (the “Non-Floored Vehicles”), or one

business day from Sebastopol Ford’s receipt of any of the “cash” proceeds of

such sale or lease of a Non-Floored Vehicle, Sebastopol Ford shall

immediately and forthwith remit to Ford Credit by electronic funds transfer or

other immediately available funds received by Sebastopol Ford in the amount

of 75% of Sebastopol Ford net sale price of the Non-Floored Vehicle after

payment of taxes, registration, and licensing.

e. Should Sebastopol Ford receive any vehicle as a “trade-in” for the payment of

a Vehicle or a Non-Floored Vehicle, Sebastopol Ford shall notify Ford Credit

within one business day of receiving the trade-in by email to the following

email address: jpolley@ford.com. Furthermore, Sebastopol Ford shall

promptly pay or satisfy any liens or amounts owing against the trade-in

Vehicle. Sebastopol Ford may subsequently sell the trade-in as a

Non-Floored Vehicle in accordance with subparagraphs a, b, c and d above;

f. Trades or transfers of Vehicles by Sebastopol Ford with other dealers

(“Dealer Trades”) are prohibited without the written consent of Ford Credit

which shall not be unreasonably delayed or denied. Requests for Dealer

Case 3:07-cv-01783-JSW Document 30 Filed 04/19/07 Page 3 of 5
United States District Court

For the Northern District of California

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Trades shall be made via email to the following email address:

jpolley@ford.com; 

g. Sebastopol Ford shall limit the use of Demonstrators to customer test drives. 

h. Sebastopol Ford may sell parts, accessories, or related supplies (“Parts”) in

the ordinary course of its service department’s business only as follows:

Sebastopol Ford shall use the proceeds from the cost of the Parts sold to either

(1) buy replacement Parts, or (2) pay Sebastopol Ford’s invoice cost on

account of part’s sales, in the form of cashier’s checks or other immediately

available funds to Ford Credit. While Sebastopol Ford continues to use parts,

it must replenish the parts inventory to adequately protect and maintain Ford

Credit’s collateral position. Sebastopol Ford shall submit to Ford

Credit a written accounting upon its request of the following:

(a) Parts sold the previous week;

(b) Parts ordered as replacements the previous week; and,

(c) Payment for any parts not replaced the previous week. 

5. Except as provided herein, Sebastopol Ford is restrained from removing any of the

unsold Collateral in such manner as to make it less available to seizure by levying officer and/or

impairing the value of the subject Collateral. 

6. Sebastopol Ford shall permit Ford Credit and its authorized agents and employees to

enter upon Sebastopol Ford’s Dealership sales lot at 6791 Sebastopol Avenue, Sebastopol,

California 95472 during business operating hours. A Ford Credit representative on the premises

during the hours of operation shall be authorized to hold possession of keys to all vehicles, to be

present while all mail and other package deliveries are opened and to review the cash receipts

journals on a daily basis without unreasonable delay. Ford Credit is authorized to conduct audits

and inspections of the Collateral and Sebastopol Ford’s books and records. Sebastopol Ford shall

deliver copies of all bank statements to Ford Credit within one hour of receipt by Sebastopol Ford of

such statements each day.

Case 3:07-cv-01783-JSW Document 30 Filed 04/19/07 Page 4 of 5
United States District Court

For the Northern District of California

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7. The value of Sebastopol Ford’s assets is approximately $1,624,156.67 which is less

than the principal amounts of the contractual obligations totaling $2,094,157.67 it owes to Ford

Credit by $470,001.00. Ford Credit shall provide an undertaking in the amount of $1.2 million. The

findings in this paragraph 7, in particular, and the finding in this order, generally, are subject to

review and reconsideration at the time of the hearing set for the writ of possession and injunctive

relief.

8. In the event that Sebastopol Ford violates any term or terms of this Temporary

Restraining Order, Ford Credit may file an application to enforce the Temporary Restraining Order

on two days notice. The Court may review such application prior to the date of the hearing on the

writ of possession and injunctive relief and the Court may enter an order to enforce the terms of this

Temporary Restraining Order as reasonably necessary, including, but not limited to, issuing an

immediate order for writ of possession or turn-over of funds or imposition of sanctions.

9. This order shall issue April 19, 2007, at 12:00 p.m.

10. This Order shall remain in effect until modified by further order of this Court, or

modified by written agreement signed by plaintiff Ford Credit and defendants Sebastopol Ford filed

with and approved by order of this Court.

Dated: April 19, 2007

 JEFFREY S. WHITE

United States District Judge

Case 3:07-cv-01783-JSW Document 30 Filed 04/19/07 Page 5 of 5