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Litigation | 12 Months Ended
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Mar. 31, 2016
Litigation [Abstract] |
Litigation | 21. Litigation On October 26, 2015, the Company entered into a settlement and general and specific release agreement with M&T Bank and the trustee in the bankruptcy cases relating to the discontinued subsidiary, which resolved the litigation and released the claims made or threatened by those parties against the Company and its executives in exchange for a payment by the Company of $18,500,000, of which approximately half was paid by the Company’s insurers under applicable insurance policies. As a result, the Company recorded an expense of $9,250,000 in general and administrative expense in the consolidated statements of income, net of insurance recoveries, during the year ended March 31, 2016. None of the parties admitted the allegations made by any other party, and the settlement was entered into for the purpose of avoiding the time, expense, inconvenience and delay incident to protracted litigation. The settlement agreement was subject to approval by the applicable courts and other customary conditions, which have now been obtained and satisfied. On December 8, 2015, the Company entered into a settlement agreement that resolved the federal court litigation brought in California by the Company involving the purchase of FAPL and various of its subsidiaries, styled Motorcar Parts of America, Inc. v. FAPL Holdings Inc., et al., Case No. 2:14-cv-01153-GW-JEM (“MPA Action”). The agreement also resolved the pending Ontario, Canada, litigation by individual defendants in the MPA Action against the Company relating to their employment. The Company received a net payment of $5,800,000, which is included in general and administrative expenses in the consolidated statements of income for the year ended March 31, 2016. None of the parties admitted the allegations made by any other party. On December 16, 2015, the Ontario actions filed by the individual defendants against the Company were dismissed. The Company was a defendant in a case filed by an investment bank in state court in New York alleging breach of contract. On May 13, 2016, the Company entered into a settlement agreement to avoid further litigation and to settle and resolve all causes of action, claims, and disputes. None of the parties admitted the allegations made by any other party. In connection with this lawsuit, the Company established a reserve of $1,100,000 as of March 31, 2016 and the related expense was recorded in the year ended March 31, 2016. This amount was paid in full on May 19, 2016. In addition, the Company established a reserve of $218,000 in connection with a settlement agreement with one of the discontinued subsidiary’s suppliers. The Company also is subject to various other lawsuits and claims. Management does not believe that the outcome of these other matters will have a material adverse effect on its financial position or future results of operations.

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