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 Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 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