NEWARK, N.J. — A federal judge denied a request to send a proposed class action lawsuit against two New Jersey car dealerships back to state court, allowing the case to proceed in federal court.
U.S. District Judge Stanley R. Chesler ruled against plaintiff Andrew Mallon’s motion to remand the case, which centers on alleged improper fees and registration delays tied to a used car purchase, according to a newly filed opinion.
Lawsuit targets dealership fees and registration delays
Mallon filed the lawsuit in January 2026 in Morris County Superior Court after purchasing a used vehicle in 2025 from Dalessio Auto Group, operating as Schumacher Chevrolet Buick of Boonton.
According to court filings, Mallon claims the dealership charged a $399 “documentary fee” without properly itemizing the services included, which he alleges violates New Jersey consumer protection laws.
He also alleges the dealership failed to provide timely vehicle registration and license plates for Michigan, where he resides, forcing him to obtain them independently at his own cost.
The lawsuit names three defendants: the Boonton dealership, a related dealership in Denville, and an individual identified as Judith Schumacher-Tilton.
Class action claims expand scope of case
The complaint includes four causes of action, with three brought as class claims alleging similar practices affected other customers.
Mallon argues both dealerships engaged in the same conduct regarding documentary fees, potentially impacting a broader group of buyers.
The fourth claim applies only to Mallon and focuses on the alleged failure to properly deliver registration and title documents.
Case moved to federal court under class action rules
Defendants removed the case to federal court under the Class Action Fairness Act (CAFA), which allows certain large class action lawsuits to be heard at the federal level.
They argued the case meets federal jurisdiction thresholds, including involving more than 100 potential class members and exceeding $5 million in controversy.
Mallon sought to return the case to state court, but Judge Chesler rejected that request, keeping the case in federal jurisdiction.
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Key Points
• Federal judge denied request to move dealership class action back to NJ state court
• Lawsuit alleges improper $399 fee and delayed vehicle registration
• Case remains in federal court under Class Action Fairness Act
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Defense challenges claims against certain defendants
In addition to opposing the remand, some defendants have moved to dismiss claims against them.
They argue Mallon had no direct interaction with certain parties and dispute allegations that all dealerships used the same documentation practices.
One dealership submitted records showing it used a different form that itemized fees and included arbitration provisions, according to court filings.
What happens next
The case will now proceed in federal court, where motions to dismiss and other pretrial proceedings are expected to shape whether the claims move forward.
No ruling has yet been made on the merits of the allegations, and the claims remain unproven.
The lawsuit remains ongoing as both sides continue litigation in the U.S. District Court for the District of New Jersey.
