Morris Chestnut Sued For Thousands Over Failed Car Dealership

Morris Chestnut has been sued by a car dealership company for a breach of contract to the tune of thousands of dollars.

According to legal documents obtained by The Blast, "The Best Man Holiday" actor, who often keeps a low profile, is being asked to pay a huge sum after failing to contribute his portion of the costs after a closing agreement had been signed for the dealership.

Chestnut and his car dealership, MC Auto Group, Inc., are listed as defendants in a breach of contract lawsuit.

In the filing, the person suing alleges that in November 2016 he entered into an operating agreement with the actor on behalf of a Arizona corporation to be equal members of Martin Automotive of Glendora, LLC.

Chestnut was declared as both the president of MC Auto Group and the manager of Martin Automotive of Glendora.

In April 2019, the perosn and Chestnut entered into the Membership Interest Purchase Agreement ("MIPA") relating to the Arizona corporation selling off its membership interest in Glendora LLC.

The lawsuit alleges that within two months both parties progressed in their deal, and by December 31, Chestnut and the person concluded the contracts and entered into the Closing Amendment to Membership Interest Purchase Agreement.

Per the document, the closing agreement stated that Glendora LLC, of which Chestnut is the manager, will "reimburse [plaintiff] in the principal reimbursement amount of $54,005.90, plus simple interest at the rate of 1.61% within 12 months after the Closing Date."

In essence, both parties agreed that Glendora LLC will make monthly payments of an equal amount, the first of which will be due on the date which falls one month after the Closing Date. Other subsequent installments would be paid on the same date of the remaining 11 months.

However, they claim Chestnut failed to follow through with the contract, "by failing to pay any of the principal reimbursement amount of $54,005.90 plus simple interest." In addition, the closing agreement stated that both parties pay an allocation of the settlement obligations related to the class action suit as well as the employer payroll taxes, and all defense side attorney fees and costs.

The plaintiff stated that it fulfilled its obligation to pay its proportionate share of the settlement, payroll taxes, and attorney fees, but Chestnut and his co-defendants failed to contribute their portion in the amount of $6,855.74.

The lawsuit is seeking that Chestnut and his co-defendants pay damage of no less than $60,861.64.

Earlier this year, "The Perfect Holiday" actor during an appearance on "Live Kelly & Mark" opened up about having two car dealerships to his name that have failed.

The 54-year-old, who grew up in Cerritos, California, revealed that he used to own two Hyundai dealerships after he got introduced to the business by a friend at an award show. Explaining how it failed, Chestnut noted it's hard to be an "absentee owner."

However, he later received a call from a business partner who advised him to "think twice" about putting his name on the dealership. Despite having owned two dealerships, Chestnut confessed that he has never bought himself a new car.

"You'll probably get more value if you don't buy a brand-new car," he declared.

It's unclear if this case is related to either of those businesses.

Chestnut is yet to respond to the lawsuit.