21 Nov 2025

ArentFox Schiff Secures $1.185 Million Jury Verdict for M5 Automotive in Kastner Honda Sale Dispute

"ArentFox Schiff obtained a $1.185 million jury verdict for client M5 Automotive LLC after Kastner Automotive Inc. and its owner terminated agreements for the sale of Kastner Honda in Napa. M5 had agreed in late 2021 to buy the dealership and real estate in a proposed $16M transaction; the seller later sold to another buyer for $17.5M. M5 sued in May 2022; a jury trial in October 2025 resulted in damages for lost profits and out-of-pocket losses."

ArentFox Schiff represented M5 Automotive LLC in litigation against Kastner Automotive Inc. and William Kastner Jr., securing a jury verdict and subsequent court ruling awarding damages to M5. The matter arose from a proposed sale in late 2021 in which M5 Automotive agreed to purchase Kastner Honda, a dealership in Napa, California, together with the underlying real estate in a transaction structured through an Asset Purchase Agreement and a Real Estate Purchase Agreement, for a proposed purchase price of $16 million. In March 2022, the owner of Kastner Honda terminated those agreements despite M5 Automotive’s readiness and willingness to close once manufacturer approval was obtained, and sold the dealership and real estate to another buyer for $17.5 million. M5 Automotive filed suit in May 2022 asserting claims for breach of contract, fraud, and wrongful termination of the agreements. After a two-week jury trial in October 2025 and three unsuccessful post-trial motions by Kastner Honda, a Napa County court upheld 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 profits and out-of-pocket damages. ArentFox Schiff represented M5 Automotive LLC with a team composed by: Victor P. Danhi, Partner, Automotive Group; Charles Gallaer, Associate, Automotive Group; John D. Bronstein, Counsel, Automotive Group; Gary D. Brophy, Associate, Automotive Group; Susanne Boniadi, Associate, Automotive Group; and Ryan Therian, Automotive Group, with assistance over the life of the case from Barbara Kazior and Natalie Moore.
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