Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Court Watch

By Cynthia M. Klaus and Bryan Huntington
November 02, 2015

Franchisees and Dealers Should Plead Causation In Actions Against The Government

In a decision that may significantly expand the ability of franchised entities to bring Fifth Amendment claims, the United States Court of Federal Claims has held that dealerships have stated plausible causes of action against the federal government in the case of Colonial Chevrolet Co., Inc. v. United States, Nos. 10-647C, 11-100C, and 12-900C, 2015 WL 5268941 (Fed. Cl. Sept. 9, 2015). The decision solidifies that claims against the government may lie where the government's conduct vis-'-vis a third party effects a taking of a plaintiff's property right ' which may include a franchise or dealership agreement. The ruling offers a roadmap that franchisees and dealers advancing takings claims should follow, and will likely be of interest to former General Motors and Chrysler Group dealers that lost their dealerships as a result of the Troubled Asset Relief Plan (TARP).

In 2009, as part of TARP, the federal government offered GM and Chrysler an aggregate $38 billion in financing in exchange for the manufacturers' agreement to terminate 2,243 dealerships. As a consequence, the three groups of dealers in Colonial Chevrolet had their dealerships terminated.

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Stranger to the Deed Rule Image

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.