Contacts:
Carl J. Chiappa, New York

Our motor vehicle franchise practice provides counsel to franchisors on a wide range of matters and litigates disputes across the country relating to franchise terminations, ownership transfers, new dealership appointments, warranty reimbursement, franchise modification, fraud, price discrimination and allocation issues, and brand withdrawal. Our lawyers advise clients on the creation of new dealer networks, as well as on nationwide dealership upgrade initiatives and offer a full suite of litigation services. We have handled numerous cases relating to termination, the transfer of franchise rights, the establishment of new dealerships, warranty reimbursement, incentives, fraud, franchise modification, and brand withdrawal. Our lawyers also have broad experience assisting manufacturers and distributors of automobile, motorcycle and other motor vehicles, including all segments of the automotive industry, from tire and engine makers and component suppliers to heavy and light-duty vehicle manufacturers.

Our lawyers have in-depth knowledge of disputes dealing with consumer complaints and product matters, including defense of consumer class actions. We have secured rulings sustaining terminations based on our clients’ special business needs and objectives, defended manufactures and distributors against claims of wrongful rejection of proposed buy sell agreements, defended product cases including claims for bodily injury and wrongful death, and handled dealer disputes before the American Arbitration Association.

Related Experience

• We currently serve as lead counsel for Ford Motor Company in UAW v. Ford Motor Company, a key Employee Retirement Income Security Act (ERISA) class action case involving retiree health benefits, and have counseled two major Midwestern automotive manufacturing and supply companies in connection with retiree health litigation, including a defendant class action brought under ERISA.
• We have served as class action counsel to major auto makers in products liability class actions.
• We defended a joint venture of Ford, General Motors, DaimlerChrysler, and ProQuest in an action alleging unlawful conspiracy in restraint of trade and attempted monopolization in the B2B sector. We successfully fended off a preliminary injunction motion in the case and settled it on favorable terms.
• We won 14 dismissals for DaimlerChrysler Corporation in a group of coordinated class actions brought in state courts alleging fraud in connection with the absence of a particular product feature.
• In a class action involving an alleged, but unmanifested, defect in certain trucks and sport-utility vehicles manufactured by our client, a major automotive manufacturer, a California court granted our motion requiring plaintiffs to first submit their allegations to the National Highway Traffic Safety Administration (NHTSA) for independent evaluation. The NHTSA denied the plaintiff’s petition for an investigation and the action returned to state court, where we obtained a complete dismissal.

• Lead defense counsel on several antitrust actions arising out of the nationwide reorganization of a client’s dealer body.
• Successfully defended a distributor in a lawsuit challenging its right to terminate a Tennessee dealer for the unauthorized transfer of its franchise.
• Defense of manufacturers and distributors against claims alleging wrongful rejection of proposed buy/sell agreements.
• Successful defense of franchisors in several lawsuits alleging inadequate compensation for parts used in warranty repairs.
• Counseled clients on several lawsuits arising from the “re-introduction” of a new vehicle brand that had previously withdrawn from the U.S market.
• Obtained a federal district court order holding that the dealer’s termination protest had to be arbitrated rather than heard by the Texas Board.
• Represented three distributors in a bankruptcy proceeding involving a California dealer in which the bankruptcy judge held that the dealer’s failure to maintain operations constituted an incurable default that foreclosed assumption and assignment of the franchise agreements.
• Pursued civil Racketeer Influenced and Corrupt Organizations Act (RICO) actions against automobile dealers arising from the commission of warranty fraud.
• Successful constitutional challenge to the composition and procedures of the Kentucky Motor Vehicle Commission.
• Advised manufacturers and distributors regarding consumer complaints and statutory demands.