Carson City’s Harley-Davidson dealership will remain closed while the owners try sell the store to pay off what they owe Harley-Davidson Credit Corp.
HDCC filed suit Nov. 17 charging owners Roberta and Jose Richard Tapia owe the finance corporation more than $4 million.
HDCC lawyer Dan Fleming told Carson City District Judge James Wilson a deal is in the works to sell the dealership and, pending a sale, the lawsuit is on hold.
In addition, Dane Anderson representing the Tapia’s Gato Malo Corp., promised Wilson they would immediately work to return customer property including bikes and employee property including tools to their rightful owners.
“There is an acknowledgment that defendants are attempting and are in the process of trying to sell the dealership,” Fleming said.
“I believe Mr. Fleming has accurately summarized the intent of the proposed order,” said Anderson. “We should be able to get the proposed order quickly.”
Anderson said the Tapias “have been working wit Harley-Davidson to hopefully alleviate the calls the court has been receiving.”
Anderson made the statement after Wilson informed him a large number of those people had been contacting his office and the court clerk’s office asking how to get their property back.
“We’ve already talked about that,” said Fleming. “We’ll return customer bikes to customers, return tools and trade to employees. We don’t want to create an unnecessary dispute.”
The lawsuit was filed charging the Tapias sold hundreds of thousands of dollars worth of motorcycles and accessories without paying back the loans used to buy the bikes and other products.
Under the trust agreement with HDCC, the dealership received loans to buy vehicles, accessories and other salable products. Those loans are then paid back with the proceeds of sales when a motorcycle or other item is purchased.
The lawsuit charges the Tapias through their corporate name Gato Malo kept the money instead of paying back the loans.
“Gato Malo is indebted to HDCC in the sum of $4,030,029.88,” the complaint charges — including at least $726,677 in cash that should have gone to pay those loans.
HDCC sought and was granted an injunction to stop further sales of inventory. Fleming said in the telephone conference Thursday that injunction would remain in place while a sale is worked out.
The formal order detailing the discussion held by that phone conference has not yet been filed.