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

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