Court Error Abuse of Discretion.

Byline: Derek Hawkins

7th Circuit Court of Appeals

Case Name: Red Barn Motors, Inc. et al. v. NextGear Capital, Inc.

Case No.: 18-1409

Officials: WOOD, Chief Judge, and ROVNER and BRENNAN, Circuit Judges.

Focus: Court Error Abuse of Discretion

This appeal presents us with only the narrow issue of whether the district court erred in rescinding class certification. The defendant-appellee, NextGear Capital, Inc., formerly known as Dealer Services Corporation, provided lines of credit for financing the operations of used car dealerships. The plaintiffs Red Barn Motors, Inc., Platinum Motors, Inc. and Mattingly Auto Sales, Inc., operated used car dealerships, and were solicited by NextGear to enter into a contract called a Demand Promissory Note and Security Agreement (the "Agreement"), whereby NextGear would issue a line of credit for them to access in purchasing used vehicles at automobile auctions. Those agreements provided the plaintiffs with a revolving line of credit, called a floorplan agreement, to purchase vehicles at the auction which they subsequently would sell at their dealerships.

We review a district court's decision to grant or deny certification for abuse of discretion. Chicago Teachers Union, Local No. 1, 797 F.3d at 433. We...