A Better Way Wholesale Autos: AG Lawsuit and Arbitration Cases

Connecticut Attorney General William Tong filed the A Better Way Wholesale Autos lawsuit on May 28, 2024, in Superior Court in Hartford, alleging the Naugatuck used car dealership sold potentially unsafe vehicles without performing the safety inspections state law requires and misled buyers about the condition of the cars.1CT.gov. AG Tong Sues Naugatuck Used Car Dealership Over Deceptive Sales of Potentially Unsafe Vehicles The case grew out of a state investigation opened in 2021 after a stream of consumer complaints.2CT Insider. A Better Way Wholesale Auto Naugatuck Lawsuit

What the State Alleges

Connecticut General Statutes ยง 14-62(g) requires a used car dealer to inspect brakes, exhaust systems, tires, airbags, seat belts, and lamps before retail sale, and to certify each vehicle is in condition for legal operation on state highways. When defects are found and left unrepaired, the dealer must record them, mark sales documents “not in condition for legal operation on the highways,” and get the buyer’s signed acknowledgment. The complaint alleges A Better Way did none of this.3CT.gov. State of Connecticut v. A Better Way Wholesale Autos Complaint

The state also accuses the dealership of misleading statements about vehicle features, performance, and roadworthiness. Consumers reported buying cars with serious defects in engines, transmissions, and suspensions, some described as undriveable soon after purchase. Others discovered undisclosed accident histories and flood damage.1CT.gov. AG Tong Sues Naugatuck Used Car Dealership Over Deceptive Sales of Potentially Unsafe Vehicles Tong said the dealership “appear[ed] to have sold damaged used cars and hidden relevant information from consumers.”4Inside Investigator. Naugatuck Dealership Sued by Tong Over Alleged Safety Failures

The complaint frames these practices as unfair and deceptive under the Connecticut Unfair Trade Practices Act, and as per se CUTPA violations because any breach of the state’s motor vehicle sales statutes automatically qualifies as an unfair trade practice under state regulations. The state is asking for injunctive relief, consumer restitution, disgorgement of revenues and profits from the alleged practices, civil penalties of up to $5,000 per willful violation, and attorneys’ fees.3CT.gov. State of Connecticut v. A Better Way Wholesale Autos Complaint

How the Dealership Responded

Joe Gorbecki, the dealership’s vice president, rejected the allegations. In a statement to WTNH, Gorbecki said, “Each of our vehicles are thoroughly inspected, pass multiple safety checks, emissions inspections performed by The State of Connecticut, as well independent 3rd party inspections, before being sold to a retail customer.” He said the company would work with the Attorney General’s office to address its concerns.5WTNH. AG Tong Sues Naugatuck Car Dealership for Deceptive Sales No settlement, consent order, or judgment in the AG’s case has been reported.

The Pattern of Consumer Cases Behind the Suit

The AG’s lawsuit follows years of individual consumers taking A Better Way to court and to arbitration, and mostly winning.

Freeman: Refused Deposit Refund

Sharay Freeman sued after the dealership refused to return her $2,500 deposit when her financing fell through, despite promising the deposit was refundable. A Superior Court judge found fraudulent misrepresentation and a CUTPA violation, awarding Freeman the $2,500 back, $7,500 in punitive damages, and $26,101.50 in attorneys’ fees. The Appellate Court affirmed in 2017 and the state Supreme Court declined further review.6vLex. Freeman v. A Better Way Wholesale Autos, Inc., 174 Conn. App. 649 The dealership was later ordered to pay an additional $49,980 in supplemental attorneys’ fees for the appeal.7Connecticut Judicial Branch. Freeman v. A Better Way Wholesale Autos, Inc.

McLeod: Falsified Odometer Readings

A buyer of a used 2008 Saab alleged the dealership deliberately falsified odometer readings to deny warranty coverage. The trial court agreed and awarded $5,435 in actual damages, $15,000 in punitive damages, and $7,045.35 in attorneys’ fees. The Appellate Court affirmed the fraud finding in 2017 but sent the punitive damages and fees back for a new hearing on the amounts.8Connecticut Judicial Branch. McLeod v. A Better Way Wholesale Autos, Inc., 177 Conn. App. 423

Rodriguez and Saint Paul: Arbitration Losses

Kiara Rodriguez won an arbitration award that included $1,000 in statutory damages under the Truth in Lending Act, $1,000 in CUTPA damages, $2,000 in punitive damages, and $12,500 in attorneys’ fees. When A Better Way tried to overturn it, the Appellate Court affirmed in September 2017 and tacked on another $20,000 in attorneys’ fees and $621.92 in costs owed to the finance company for defending the award.9FindLaw. A Better Way Wholesale Autos, Inc. v. Kiara Rodriguez et al. James and Julie Saint Paul won a similar fight when the Appellate Court upheld their arbitration award and added $2,185 in supplemental attorneys’ fees.10Connecticut Judicial Branch. A Better Way Wholesale Autos, Inc. v. Saint Paul

Arbitration Clauses in the Sales Contracts

If you have bought from A Better Way, your contract likely contains a mandatory arbitration clause that requires disputes to be resolved outside court. Gorbecki told NBC Connecticut in 2016 that the company favors arbitration to “keep the legal fees down.” Consumer attorney Dan Blinn, who at the time represented a dozen clients in arbitration against the dealership, said many customers did not realize they had waived their right to sue.11NBC Connecticut. Dealership Complaints Point to Loss of Money, Patience and Right to Sue

Federal court has been skeptical of how the dealership uses those clauses. In Stanley v. A Better Way Wholesale Autos (2018), U.S. District Judge Michael P. Shea denied the dealership’s motion to compel arbitration, finding the company had forfeited its right to arbitrate through “an intentional pattern of gamesmanship and delay.” After the consumer opened an arbitration with the American Arbitration Association as the contract allowed, the dealership refused to pay required fees or respond to AAA communications for more than three months, prompting the AAA to close the case. Only after the consumer filed suit in federal court did the dealership try to invoke its arbitration rights. The court held that allowing selective enforcement after that behavior would be unfair.12A&O Shearman US Arbitration. Stanley v. A Better Way Wholesale Autos, Inc.

Other Legal and Regulatory Matters

The 2024 AG action is the most significant case pending against the dealership, but not the only one. In July 2024, A Better Way sued the Connecticut Department of Revenue Services, challenging a $477,000 tax assessment on $4.2 million in warranty sales and arguing the state was double-taxing warranties sold to out-of-state buyers. A three-day trial was scheduled for mid-December 2025, with no outcome reported.13Holon Law. Auto Dealer Fights Back After Connecticut Tax Deposition Missteps Earlier, the Connecticut Commissioner of Motor Vehicles fined the dealership $5,000 in 2013 for operating a storage lot without a dealer’s license or municipal approval; the Appellate Court reversed that violation in 2016 for insufficient evidence in the administrative record.14FindLaw. A Better Way Wholesale Autos, Inc. v. Commissioner of Motor Vehicles In 2011, Gorbecki was ordered by Naugatuck’s Inland and Wetlands Commission to stop washing vehicles on the property after wastewater was found discharging into a nearby brook.15Town of Naugatuck. Inland and Wetlands Commission Show Cause Hearing

If You Bought From A Better Way

The Attorney General’s investigation is public, and the office asks affected consumers to file complaints. The Better Business Bureau lists the dealership at a B+ rating, notes it is not BBB accredited, and identifies a “pattern of complaints” the business has not resolved, with reviewers citing major repairs shortly after purchase and a perceived lack of safety inspections.16Better Business Bureau. A Better Way Wholesale Autos, Inc. BBB Profile Gorbecki told WTNH the company has been in business over 24 years and has sold more than 62,000 vehicles.5WTNH. AG Tong Sues Naugatuck Car Dealership for Deceptive Sales If you believe your vehicle was sold without a proper safety inspection or with an undisclosed defect or accident history, the AG’s complaint identifies exactly the kind of conduct the state is now pursuing, and past cases show individual consumers have prevailed in both court and arbitration.