Lamborghini, Ferrari, Lotus… The Scotti brothers tear each other apart

The members of the Scotti family, a key player in the market for the sale and rental of luxury cars (Lamborghini, Ferrari, Lotus, etc.) in Quebec, are facing each other in court in an epic battle which is likely to divide the famous siblings for years to come.

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In a lawsuit filed in Superior Court, two of the clan’s five brothers, Ciro and Paolo (Paolino) Scotti, are claiming that their brother and businessman John (Giovanni) Scotti, of John Scotti Automotive (JSA), pays them the millions they believe are owed to them, after the sale of six car dealerships, between 2018 and 2021.

At the same time, a fourth brother, Felice Scotti, requested from the court a declaratory judgment that each of the Scotti brothers is a 20% shareholder of the Scotti group (JSA), then that she orders its liquidation, followed by its pure and simple dissolution .

Millions at stake

A big money chicanery that has been percolating for years and which is just beginning to come to light, to the rhythm of the filing of cross legal proceedings, launched by one or other of the members of this family of renowned entrepreneurs .

The man targeted by all these lawsuits, John Scotti himself, declined our interview request. In a written statement sent by the National public relations firm which represents him, the latter however appears upset by the turn of events.

“I am deeply saddened and sorry about the current situation. I would like the facts to be established as quickly as possible, but out of respect for the ongoing legal process and the parties involved, I will not make any further comment.”

Evolving structure

Co-founded in 1977 by John and his brother Paolo Scotti, JSA owns new and used automobile dealerships under several brands, including Lamborghini Montreal, John Scotti Lotus, and John Scotti Jaguar/Land Rover.

Over the years, we can read in documents filed in court, JSA created new divisions (John Scotti Prestige, John Scotti Productions, Location John Scotti, etc.), modified its structure at the turn of the 2000s and implemented a new distribution of shares between brothers.

From then on, each became the owner of the majority of shares in particular dealerships (Paolo, for example, was entrusted with Subaru Repentigny; Orlando became the main shareholder of Mitsubishi St-Léonard, etc.), while apparently believing that they would retain their 20% stake in the share capital of JSA and its related companies.

Corporate sailing

According to court filings, relations between the brothers began to sour years later, during the sale – beginning in 2018 – of a series of automobile dealerships, including Volvo Brossard, Jaguar/Land Rover Brossard, Subaru St-Léonard, Volvo Autos St-Léonard and Alfa-Roméo St-Léonard.

In their suit, the brothers Ciro and Paolo deplore having only been able to get their hands on the sales documents for these concessions, claim to have always been waiting for the payment of their respective full shares of these transactions and to suffer – like their brother Felice – of maintaining a corporate veil over the management of the group, preventing them from verifying the accuracy of the sums owed to them.

The company register today indicates that the sole director of JSA is John Scotti, and that the majority shareholder of JSA is John Scotti Management, owned by John Scotti. A portrait that his brothers contest, considering it not to be in conformity with the agreements agreed between the brothers in the past.

Condemnation, sale and dissolution

They therefore ask the Superior Court to order John Scotti (and JSA) to pay them respectively the sums they consider to be owed to them, namely $3,086,664 each, plus interest.

For her part, Felice Scotti is demanding a judgment from the court that all of the Scotti brothers still hold 20% of the share capital of the Scotti group. He also asks the judge to order the liquidation of JSA (and its affiliated entities), which would allow him to withdraw completely before dissolution in exchange for compensation.

The proceedings are still at the discovery stage. No trial is planned before 2025.

–With the collaboration of Michaël Nguyen and Francis Halin