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

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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