Metro Detroit Chrysler Jeep dealership suing Chrysler

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
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