Sep 12, 2019 - Franchise, Dealer & Antitrust Decisions in One Sentence by |

 

In a Colorado federal court case interpreting the Amended Colorado Car Dealer Act in which the car dealer agreement “expressly reserved” for the defendant car manufacturer “the unrestricted right to grant others the right to sell Kia products,” and noted also that plaintiffs are “not being granted an exclusive right to sell Kia products in any specified geographic area,” and stated that defendant “may add new dealers to, relocate dealers into or remove dealers from” the geographic area “as permitted by applicable law”, and where the plaintiff franchisee dealers alleged that defendant’s plan to establish the proposed dealership violated Colo. Rev. Stat. § 44-20-125 (“CDA”), a statute which creates a private right of action for “an existing motor vehicle dealer adversely affected by” a distributor’s plan to reopen, relocate, or establish a “same line-make motor vehicle dealer,” and where the CDA requires any manufacturer seeking to “establish an additional motor vehicle dealer, reopen a previously existing motor vehicle dealer, or authorize an existing motor vehicle dealer to relocate” to provide at least sixty days notice to all of its existing dealers “within whose relevant market area the new, reopened, or relocated dealer would be located”, and where the CDA was amended to define the “relevant market area” as the greater of “the geographic area of responsibility defined in the franchise agreement of an existing dealer” and “the geographic area within a radius of ten miles of any existing dealer of the same line-make of vehicle as the proposed additional motor vehicle dealer,” the car manufacturer would be held to the new ten miles benchmark, not the old five miles standard.

DC Auto., Inc. v. Kia Motors Am., Inc., Civil Action No. 19-cv-00318-PAB-MEH, 2019 U.S. Dist. LEXIS 150481 (D. Colo. Sep. 3, 2019)

Please Click on Link Below to Read Full Decision.

DC Auto._ Inc. v. Kia Motors Am._ Inc._ 2019 U.S. Dist

 

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