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Auto Dealer Can Bring 'Bad Faith'
An appellate court recently ruled that an automobile dealership that could not file suit to enjoin an additional dealership under the statute's specific additional “add-point” statute could nevertheless file an administrative proceeding based on a “generic” statute that prohibits conduct by a manufacturer that is “capricious, in bad faith, or unconscionable.” See Parktown Imports, Inc. v. Audi of America, No. 2008 WL 2651175 (Mo. Ct. App. W.D. July 8, 2008). The Missouri Administrative Hearing Commission dismissed the dealer's application for review, but the court of appeals reversed the dismissal. The appellate decision (which is on further appeal) sets a precedent with potentially serious implications for automobile manufacturers and other franchisors or distributors because it allows actions to block network changes on a mere claim of “bad faith” even when there is no standing to bring suit under a specific provision governing network changes.
The protesting dealer, Parktown Imports, Inc. (one of two Audi dealerships in the St. Louis area), filed an application for review contesting Audi's decision to establish a new motor vehicle dealership within 10 miles of Parktown's dealership. The application alleged that Audi engaged in conduct that was capricious, in bad faith, or unconscionable and therefore violated '407.825(1) of the Missouri Revised Code. Parktown further claimed that in 2004, Audi had invited Parktown to submit an application to acquire a new stand-alone dealership west of St. Louis. Parktown responded that it did not want to relocate and that it did not think the market could support three Audi dealerships. Audi then sent a letter explaining that the third dealership location was not a final decision and that it would base its decision on the proposals received from area dealerships. Parktown also asserted that in May 2005 Audi suggested that if Parktown were to replace its current facility with a new stand-alone facility of Audi's design, the manufacturer would not establish the third dealership. At a subsequent meeting, Audi proposed that if Parktown were willing to buy Plaza Motors (the other St. Louis dealership), Audi would grant Parktown a right of first refusal to open a new sales point in the area west of St. Louis. Parktown did not accept the proposal and claimed that in the fall of 2005 Audi told Parktown that it was no longer pursuing a third dealership.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.