Faced with a nearly $2 million judgment for selling a rebuilt wreck without disclosing it, Blue Springs Ford Inc. filed for Chapter 11 bankruptcy protection.

Faced with a nearly $2 million judgment for selling a rebuilt wreck without disclosing it, Blue Springs Ford Inc. filed for Chapter 11 bankruptcy protection.


Documents filed in U.S. Bankruptcy Court for the District of Maryland show that the company filed for bankruptcy court protection on March 21. That allows a company to put together a plan to reorganize finances to meet obligations and pay creditors over time.


Documents show that the company is to continue paying salaries, wages and benefits to employees. The business, at 3200 N.W. South Outer Road in Blue Springs, was open on Friday and Monday when contacted, but a message left with a general manager and an attorney for the company was not returned.


Court documents list just more than $2.1 million owed to the dealership’s 20 largest creditors.


Most of it, $2,058,000, is to Michael and Kimberly von David, who sued the company after discovering their Ford Ranger pickup purchased from the dealership was a rebuilt wreck, which they said was not disclosed when they bought the vehicle. The vehicle cost about $14,000, and the von David’s were awarded compensatory damages of $171,520 and $1.75 million in punitive damages.


The dealership appealed the verdict following a jury trial in 2010. The matter is pending.


Numerous lawsuits have been filed against the company for rebuilding wrecked vehicles. In 1993, a jury awarded Vicki Grabinski, a Kansas resident who purchased a GMC Jimmy from Blue Springs Ford Wholesale Outlet, $217,835, according to other published accounts. The dealership maintained that the vehicle was never wrecked but rebuilt after the vehicle had been flipped over by a previous owner.