Lawyers for John Darvish Sr., the 80-year-old founder of the Darcars automotive empire, have fired back against his daughter’s claims that he reneged on verbal agreements to give her one-third of the company.
In a March 6 motion, lawyers for John Darvish Sr. wrote there was no written agreement between Tammy Darvish and her father and asks that a judge dismiss a lawsuit filed by Tammy in January. The motion says Tammy’s claim that her father had promised her one-third of the company as well as veto power in business decisions is “pure fiction.”
Tammy, 51, had for years served as the public face of the automotive empire of 22 car dealerships that generates more than $1 billion in annual revenue.
A 19-page complaint filed by Tammy’s lawyers in January claimed that in 2011 her father had begun implementing a succession plan. That plan, according to the complaint, would have given equal control over the company and the decision-making process to Tammy and her half-brothers, John Jr. and Jamie.
The complaint alleges that John Darvish Sr.’s first formal step toward putting the succession plan in place happened in January 2014 when he drafted two written agreements that would have enabled the brothers and Tammy to receive 5 percent ownership stakes and give them more decision-making control.
However after the plan was presented, the complaint notes, John Jr. and Jamie asked Tammy to sign a side agreement that would have given them majority control of the decision-making process, which she refused to sign.
The motion by John Darvish Sr.’s lawyers disputes that the 2014 agreements show anything more than an attempt by Darvish to enable his children to receive small stakes in the company as well as roles in decision-making. The agreements would have established a Darcars board of directors that would have included John Jr., Jamie, Tammy and their father. Under those agreements, John Darvish Sr. would have maintained an 85 percent ownership stake in the company, according to the motion.
The motion notes that all three children declined to sign the agreement. Tammy Darvish later filed her lawsuit.
As for the oral agreement between Tammy Darvish and her father, the motion claims it’s unenforceable.
“There are no details alleged as to what work [Tammy] agreed to perform for Darcars; how long [Tammy] needed to work for Darcars to receive an ownership interest; when the ownership transfer would occur; whether [Tammy] would receive her interest in Darcars as a gift or whether she would have to pay for her ownership interest; or with whom she would even share control of Darcars,” the motion said.
The motion asks for Montgomery County Circuit Court Judge Ronald Rubin to dismiss Tammy’s lawsuit. A hearing is scheduled for 9 a.m. May 8.
At Darcars, Tammy held several positions since joining the company in 1984, including managing daily operations at car dealerships, promoting the brand at industry events and handling financial duties for the company. She left the family business in March 2014.
In January, The Washington Post reported that Tammy had joined Pentagon Federal Credit Union in Alexandria as the executive vice president in charge of business development and government and community relations.
In December 2014, Automotive News reported that John Darvish Jr., then 42, was named the CEO of Darcars while Jamie Darvish, then 39, was named chief operating officer.
In that story, John Darvish Jr. said the company had planned the succession for five years and that “It’s been pretty smooth and pretty effective.”
