Pennsylvania Record

Friday, April 3, 2020

Hyundai alleges Pittsburgh dealerships wrongfully earned $5 million by exploiting warranty

State Court

By Carrie Bradon | Aug 30, 2019

Car 1280

PITTSBURGH – Hyundai alleges two Pittsburgh dealerships and an Allegheny County individual intentionally damaged certain models of its vehicles in order to profit from an extended warranty.

Hyundai Motor America filed a complaint Aug. 22 in the Allegheny County Court of Common Pleas against Knight Motors LP, Doman Auto and Marine Sales and Christopher D. Pantelis alleging fraud, violation of the Racketeer Influenced and Corrupt Organizations Act and unjust enrichment. 

The plaintiff alleges the defendants have illegally and improperly profited from the fraudulent exploitation of an extended warranty the plaintiff offers for certain model years of Hyundai Sonatas. The plaintiff alleges the warranty did not cover the vehicles because the defendants intentionally damaged them. 

The suit states Pantelis purchased Sonatas through Doman Auto and Marine Sales, sold them to Knight Motors at markup, and then the engines were intentionally compromised. The vehicles allegedly were then taken to an independent Hyundai dealership, which and reimburses the defendants for the damaged vehicles under the warranty.

The plaintiff alleges the defendants have turned in more than 600 damaged Sonatas under the warranty and received $5 million.

The plaintiff is seeking compensatory damages. The plaintiff is represented by Clem C. Trischler, John A. Schwab and Jennifer H. Bouriat of Pietragallo Gordon Alfano Bosick & Raspanti LLP in Pittsburgh.

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Court of Common Pleas of Allegheny County