Chrysler broadened federal court request for discretion in where to place reinstated dealers

Article by Christian Andrei, on January 2, 2011

In the litigation between Chrysler Group LLC and over 20 dealerships, the carmaker is asking for caveats to the requirements to reinstate those dealers that won during the arbitration. It’s possible that a federal judge will make a decision, preventing some stores from reopening.

Chrysler attorneys are asking U.S. District Judge Sean Cox to declare that Chrysler is complying with the federal Consolidated Appropriations Act of 2010, which led to the creation of the arbitration process for terminated dealers.

The American company wants the court to state that the law does not compel “unconditional reinstatement” or pre-empt a Michigan law that covers dealer markets.

Chrysler’s new counterclaim makes the same argument that the carmaker made last September against the suburban Detroit dealership of Colleen McDonald before her case was consolidated weeks ago with the other cases involving over 20 dealers in at least six states.

It’s possible for this new lawsuit to have a much broader effect. In Chrysler’s counterclaim, attorneys John Berg and Cynthia Filipovich of Detroit law firm Clark Hill assert that Livonia’s interpretation of the (dealer arbitration) Act “contradicts the plain language of the Act, and its civil action… seeks to fashion a remedy that is nowhere to be found in the Act.” [via autonews - sub. required]

Topics: chrysler, dealer

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries