Ford has won an appeal in a dispute over the attempted purchase of a struggling Maryland dealership, overturning a lower-court award of roughly $5.8 million to Charles Winegardner, who had planned to buy Hunt Ford in La Plata.
Ford Blocked the Dealership Sale
Winegardner agreed to purchase Hunt Ford in 2019 after the dealership’s owners decided to retire. Ford later exercised its right of first refusal after evaluating the store’s sales performance, facilities and demand in the La Plata market.
Ford planned to convert the location into a service-only center. The decision was also part of the automaker’s national dealership consolidation strategy, which involves reducing the number of dealers in certain markets and concentrating sales among fewer locations.
Winegardner sued Ford in 2020 after the automaker blocked the transaction. He met Ford’s minimum qualifications and was a dealer in good standing. At the time, he owned four dealerships in southern Maryland and had “a successful history of turning around underperforming dealerships,” according to a brief he filed with the Appellate Court of Maryland.
Maryland Law at the Center of the Dispute
The legal dispute centered on Maryland’s 2009 law restricting manufacturers’ use of rights of first refusal in certain dealership sales.
Ford argued that although the law limited a manufacturer’s ability to exercise a right of first refusal, its agreement with Hunt Ford dated back to 2001. The central issue was whether the 2009 restriction could be applied retroactively to that contract.
Winegardner initially won in a lower court, which awarded him roughly $5.8 million in 2024. Ford later prevailed on appeal in September 2026, eliminating the award.
Winegardner now plans to seek further review of the decision.
Hunt Ford Now Operates as a Service Center
Ford assigned its purchase rights to Tom Kody, who already owned five Ford dealerships in southern Maryland. Kody later purchased Hunt Ford, which currently operates as a service center.
Timothy Maloney, Winegardner’s attorney, expressed disappointment with the ruling and warned that it could have a “broad impact upon all kinds of dealer regulatory laws.”
Ford Faces Another Dealer-Related Legal Dispute
The Maryland case is one of several legal disputes involving Ford. Another case this year involves an Iowa dealer, whom Ford and Stellantis’s financial arms separately sued over alleged floorplan fraud involving 81 vehicles financed by both lenders.
Ford’s victory in the Maryland appeal ends the roughly $5.8 million lower-court award to Winegardner, while the dealership at the center of the dispute remains in operation as a service center.
