If you searched "I'm being sued by Westlake Financial" or "lawsuit against me by Westlake Financial," you probably just got served a summons and complaint, a demand letter, or notice of an arbitration filing, and you're trying to figure out how serious this is and what to do next.
Here's the short version: it's serious, it's very winnable to manage well, and the worst thing you can do right now is nothing. Here's what's actually going on and how to respond.
Who Is Suing You, Exactly?
Westlake Financial isn't one single entity. Depending on your relationship with the company, you may see either or both of these plaintiffs named in your case:
- Westlake Services, LLC dba Westlake Financial Services — purchases and services retail installment auto contracts (the loans consumers sign at the dealership).
- Westlake Flooring Company, LLC dba Westlake Flooring Services — provides floorplan lines of credit that let independent and franchise dealerships finance their vehicle inventory.
Both are part of the Hankey Group, headquartered in Los Angeles. If you're a dealership owner, most lawsuits trace back to a Master Loan and Security Agreement or floorplan agreement, and if you personally guaranteed that line of credit, Westlake can pursue you individually, not just your business entity.
Why Westlake Financial Typically Sues Dealership Owners
In our experience representing California business owners, these lawsuits usually fall into a few categories:
- Floorplan default ("out of trust" sales) — a vehicle financed under the credit line was sold but the proceeds weren't remitted to Westlake as required.
- Breach of the master agreement — missed curtailment payments, failure to maintain required insurance, or violation of inventory audit terms.
- Vehicle buy-back and repurchase disputes — Westlake alleges a sold vehicle needs to be repurchased under the dealer agreement, often tied to a warranty, title, or financing defect.
- Deficiency balances after repossession or liquidation — once collateral is sold, Westlake sues the guarantor personally for whatever balance remains.
- Personal guaranty enforcement — if the dealership entity is defunct, judgment-proof, or in bankruptcy, Westlake will name the individual guarantor as a defendant to collect.
You've Been Served — What to Do First
1. Note your deadline immediately. In California, a Complaint typically requires a response within 30 days of service (shorter timelines can apply in unlawful detainer or certain expedited matters, check your summons). If the matter is proceeding in arbitration (commonly AAA, per the arbitration provision in many Westlake contracts), your response deadline and process will look different from a court case.
2. Confirm whether this is litigation or arbitration. Many Westlake retail and dealer agreements include a mandatory arbitration clause. This affects where the dispute is heard, discovery rights, and appeal options and it can sometimes work in your favor.
3. Identify exactly which entity and which agreement is suing you. A complaint naming "Westlake Services, LLC dba Westlake Financial Services" is a different claim than one from "Westlake Flooring Company, LLC." Pull the actual master agreement or guaranty referenced in the complaint before you respond to anything.
4. Do not ignore calls or letters, but don't make financial admissions either. Anything you say to a collections representative can resurface later. Route communication through counsel once you've retained one.
5. Preserve your records. Sale documents, curtailment payment history, audit reports, insurance certificates, and correspondence with your Westlake account rep are often central to the defense.
Do You Have a Defense?
Every case is different, but common issues we look at include:
- Accounting accuracy — Westlake must be able to substantiate the exact deficiency balance claimed. Errors, uncredited payments, and disputed fees are common.
- Commercially reasonable disposition of collateral — under California's Commercial Code (UCC Article 9), a secured creditor that repossesses and sells collateral must do so in a commercially reasonable manner and provide proper notice. Failures here can reduce or eliminate a deficiency claim.
- Validity and scope of the guaranty — California's suretyship statutes (Civil Code §§ 2787–2856) govern guarantor rights and defenses. Most commercial guaranties contain broad waivers of these protections, but whether a particular waiver was properly drafted and executed is worth a close legal review.
- Statute of limitations — written contract claims in California generally must be filed within four years (Code of Civil Procedure § 337). Older debts, or debts that were the subject of an earlier dismissed action, can raise timing defenses.
- Improper service or venue — procedural defects can matter, especially in default judgment situations.
- Arbitration provision disputes — whether the claim even belongs in the forum where it was filed.
None of these are guarantees, but they illustrate why "just pay it" or "just ignore it" are rarely the only two options.
What Happens If You Don't Respond
Defaulting on a lawsuit doesn't make it go away, it usually makes it worse. If you miss your response deadline, Westlake can request a default judgment, after which California law allows creditors to pursue:
- Wage garnishment
- Bank account levies
- Liens against real property or business assets
- Judgment interest accruing on the balance
A default judgment is also significantly harder (and more expensive) to unwind than it would have been to respond in the first place.
How LawPLA Can Help
We represent business owners across all of California in commercial litigation and creditor disputes, including matters involving finance and floorplan lenders. If you've been served with a Westlake Financial or Westlake Flooring lawsuit, or received notice of an AAA arbitration filing, we can review the complaint, the underlying agreement, and your guaranty to map out your realistic options before your deadline passes.
Call the Law Offices of Parag L. Amin, P.C. at (213) 293-7881 for a confidential consultation, or fill in the Contact Form below.
Frequently Asked Questions
Is Westlake Financial allowed to sue me personally, not just my dealership?
If you signed a personal guaranty on the master agreement or floorplan line, yes, a guaranty makes you individually liable, separate from your business entity's liability.
How long do I have to respond to a Westlake Financial lawsuit in California?
Typically 30 days from the date of service for a civil complaint, though the exact deadline is printed on your summons and can differ for arbitration demands. Confirm the actual date rather than assuming.
Can Westlake Financial garnish my wages or levy my bank account in California?
Only after obtaining a judgment. Until then, no judgment-enforcement remedies are available to them, which is exactly why responding before a default judgment is entered matters.
Does my Westlake Financial contract require arbitration instead of a lawsuit?
Many Westlake retail and dealer agreements include an AAA arbitration clause. Whether it applies to your specific claim depends on the agreement's exact language and how the claim was filed.
What is a deficiency balance, and how does Westlake calculate it?
After collateral (inventory or a financed vehicle) is repossessed and sold, a deficiency balance is whatever is left owing on the original debt once the sale proceeds are applied. The calculation should account for the sale price, any repossession and sale costs charged back to you, and credit for prior payments, and it's worth independently verifying, since errors and uncredited payments are common.
Was Westlake required to notify me before disposing of the collateral?
Generally, yes. California's Commercial Code requires a secured creditor to provide notice and dispose of collateral in a commercially reasonable manner before pursuing a deficiency. If proper notice wasn't given or the sale wasn't commercially reasonable, that can be grounds to challenge the deficiency amount.
Can I negotiate or settle a Westlake Financial claim before it goes to trial?
Often, yes. Many of these matters resolve through negotiated payment plans or reduced settlements rather than trial, particularly once the underlying accounting and any defenses have been laid out clearly.
Do I need a lawyer if Westlake Financial is suing me?
You're not legally required to have one, but given the deadlines, the accounting issues involved, and what's at stake (a judgment, garnishment, or lien), most business owners and guarantors benefit from at least a consultation before deciding how to respond.