Metro Detroit Chrysler Jeep dealership suing Chrysler

Article by Christian A., on August 26, 2010

Citing a loss of rights under franchise law, a lawsuit was filed by a Metro Detroit Chrysler Jeep dealership that was reinstated after arbitration proceedings with Chrysler Group LLC last month.

The suit was filed in the US District Court in Detroit against Chrysler and a nearby Dodge Chrysler Jeep store (originally just a Dodge dealer).

Livonia Chrysler Jeep Inc., which is operated by the Holiday Automotive Group, asks for $75,000 in economic damages plus an injunction and unspecified punitive damages against Chrysler.

Livonia Chrysler Jeep, owned by Colleen McDonald, alleges that Chrysler's letter of intent sent on Aug. 12 does not return the sales and service agreement that Chrysler gave to Crestwood Dodge Chrysler Jeep in Garden City, Mich., after terminating Livonia's franchise agreement last year. In July, the McDonald dealership had won an arbitration appeal.

Soon after Chrysler terminated McDonald's Chrysler Jeep franchise, the Chrysler Jeep franchise was granted to Crestwood Dodge.

In Livonia Chrysler Jeep's reinstatement, there is a provision that the letter of intent is void if Crestwood or another existing dealer "protests the addition of (Livonia Chrysler) into the dealership network and the protest is successful."

The lawsuit cites violations of the federal law that permitted dealers to seek arbitration as well as the Michigan Motor Vehicle Dealers, Distributors and Manufacturers Act.

The lawsuit states that the law requires Chrysler to reinstate Livonia Chrysler to have the same position it had before the franchise agreement was terminated. It also said that before the franchise was terminated and awarded to Crestwood by Chrysler, Crestwood did not own a Chrysler Jeep franchise in Garden City.

If you liked the article, share on:

Comments

Recommended

The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
One of the main features that have appealed to Cadillac’s customers is its Cadillac User Experience system or CUE. This is once again expected to change as the brand recently...
by - February 22, 2017
Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 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