A Kentucky Ford dealer learned a costly lesson about honesty after losing a lawsuit. The subject was a nearly new but damaged truck it sold without disclosing its true history.

Paul Miller Ford of Lexington dealt with some unexpected overhead when its new car director crashed a 2019 Ford F-250. The dealership paid $6,298 to repair the truck. But, according to the salesperson, the manager (or anyone else) never informed the sales department about the accident.

Three months later, customer Barry Smith bought the truck, unaware of the damage. The dealership told him the truck’s 656 miles came from its use as a “demo vehicle.” Smith later experienced issues with the truck, including vibrations and steering problems. When he tried to trade it in at another dealership, a CarFax report exposed the crash.

Feeling deceived, Smith sued the dealership. The manager claimed he didn’t disclose the crash because “things fall through the cracks.” The salesperson testified they had no knowledge of the damage, noting that proper procedure would have required a disclaimer about the wreck and repairs.

The Drive reported that the Kentucky Court of Appeals dismissed Smith’s fraud accusation but ruled the dealer breached its warranty and violated a law requiring disclosure of presale damage exceeding $2,000. The court awarded Smith $8,026 in compensation and $73,001 in attorney fees. Additionally, the dealer was hit with $80,260 in punitive fines.

In total, Paul Miller Ford was fined $161,287.