Automotive News - September 8, 2008 - (Page 33) SEPTEMBER 8, 2008 • 33 Pa. court throws out suit against Ford, dealership Eric Freedman freedma5@msu.edu Wording was clear Issue: Should passenger’s estate be allowed to pursue productdefect claims against Ford and Pennsylvania dealership in Explorer rollover suit after signing release? Where it stands: State appellate court says no. The estate will ask Pennsylvania Supreme Court to review the case, its lawyer says. Williams’ underinsured motorist policy, totaling $150,000. The releases with the insurance companies referred to all claims against “all other persons, firms or corporations” but didn’t mention either Ford or Keyser & Miller by name. Only after the settlement with the insurers did the estate hire a new lawyer to sue Ford and the dealership in state court in Philadelphia County. Ford Motor Co. and a dealership are shielded from a product-defect and wrongful-death suit arising from a fatal rollover because the passenger’s estate signed broadly worded releases with the driver’s and passenger’s insurers, an appellate court in Pennsylvania has ruled. The unanimous decision tossed out a lawsuit against Ford and Keyser & Miller Ford Inc., the Collegeville, Pa., dealership that sold the 2002 Explorer Sport involved in the high-speed crash. Front-seat passenger Maya Buseman-Williams died of massive head injuries in the 2003 accident when her fiance, the driver, fell asleep at the wheel, according to court papers. The estate sued the driver in federal court and settled for the limits of his liability policy and Buseman- The new case alleged that the Explorer was defectively designed and manufactured and asked for compensatory and punitive damages. The defendants denied the allegations, and a lower-court judge turned down their motion to dismiss the case without trial. But a threejudge Pennsylvania Superior Court panel sided with the manufacturer and dealer, finding that the broad language in the releases was unambiguous. The court rejected the estate’s argument that the estate hadn’t intended to release Ford or Keyser & Miller and found no evidence of fraud or other grounds that would trump the releases. Estate lawyer Stewart Eisenberg, of Philadelphia, told Automotive News that the decision was “unfortunate” and means that lawyers “have to be careful in drafting releases.” The estate’s legal malpractice suit is pending against its original lawyer who negotiated the settlements and releases. Wayne lawyer Kristen Dennison, who represented Ford and the deal- ership, said the decision reflects Pennsylvania law on the scope of an unambiguous general release. As for the argument that the estate didn’t intend to release her clients from liability for the accident, Dennison said in an interview that a “unilateral mistake” by one party doesn’t invalidate a release. c ® Mo. dealership’s protest gets go-ahead Eric Freedman freedma5@msu.edu Out of bounds Issue: Should existing Audi dealers be allowed to protest points added outside their relevant market areas? Where it stands: Missouri appeals court says yes, ruling outof-area dealers can pursue badfaith-type claims. Guarantee offer for first time customers only. Guarantee offer requires specific written agreement. Call for details. The Missouri Court of Appeals has reinstated a dealership’s protest of a new Audi sales point outside its relevant market area. Under the decision, Missouri dealers aren’t limited to protests of added points only within their relevant market areas. Instead, depending on the circumstances, they may be able to proceed under a separate, more broadly written part of the dealer law that prohibits manufacturers from engaging in capricious, bad-faith or unconscionable conduct toward their franchisees. The dispute began after Audi authorized a third dealership in the St. Louis area “to tap the burgeoning luxury-vehicle market,” Audi said. The A8, shown, is among Audi’s luxury offerings. the two legal provisions and ruled against Audi. The overall purpose of the franchise law is to protect dealers “from the harsh economic inequalities inherent in the relationship between dealerships and manufacturers,” appeals Judge Harold Lowenstein wrote for the unanimous court. The court did not comment on the merits of the protest but sent the case back to the administrative hearing commission, saying Parktown ultimately may be entitled to damages or other relief. James Vogler, of Chicago, Audi of America’s attorney, had said that if a further appeal were unsuccessful, the issue for the commission would be whether the company acted capriciously, or “irrationally,” not whether it had good cause to authorize a third sales point. “I don’t see how anybody can prove” that Audi acted capriciously “because that was recommended by a market study from an expert in the field,” Vogler said in an interview. He also said the statute “makes no sense” because the broader dealer law — unlike the protest provision — has no notification or time requirements, so an appointed dealer “potentially would always be at risk of a challenge years later.” But Harvey said Audi and Bommarito “went ahead and opened” the new store after the commission rejected the protest “although they knew we were going to appeal.” Bommarito’s lawyer, Anthony Soukenik, of St. Louis, said in an interview that the dispute is between Parktown and Audi, not between the two dealerships. “We may be a victim of circumstance,” he said, adding that the court decision shouldn’t affect his client. c ACTION INTEGRATED MARKETING PROVIDES FULL-SERVICE & EVENT MARKETING SOLUTIONS FOR DEALERSHIPS NATIONWIDE The case The dispute arose from Audi’s authorization of a third dealership in the St. Louis area “to tap the burgeoning luxury-vehicle market,” Audi said in court papers. Audi awarded the franchise to Frank Bommarito Oldsmobile for a location in Ellisville, more than 10 miles from Parktown Imports Inc.’s Audi dealership in Kirkwood. Parktown and Audi hadn’t reached agreement in their own previous negotiations over the franchise. The add-point protest provision applies to established franchisees within a six- or 10-mile radius of the new location, depending on county population. A six-mile relevant market area applies in St. Louis County, where Parktown and the new point are. After the state administrative hearing commission dismissed Parktown’s protest, Bommarito completed construction of its new store, which does business as Audi West County. It opened in 2007, about 12 miles from Parktown. Parktown’s lawyer, Edwin Harvey of St. Louis, told Automotive News, “It was only with great reluctance” that his client sued, adding, “We’ve been an Audi dealer for 35 years.” The ruling After the commission rejected Parktown’s protest without a hearing, the dealership headed to the appeals court, where a three-judge panel found no conflict between http://www.webastoshowroom.com http://www.webastoshowroom.com
Table of Contents Feed for the Digital Edition of Automotive News - September 8, 2008 Chrysler Financial hikes dealer floorplan fees Back in business? Detroit's best bets for cash: Feds, UAW Document fee suits swamp Missouri dealers Honda's family squabble Used truck prices rebound Ford mulls Lincoln compact Toyota delays RAV4 plan Proposed flex-fuel mandate roils industry Chrysler sues consultant over sourcing Cobalt transaction prices are up $775 since April Nissan looks to Mexico for engineering aid To retain truck buyers, Nissan offers more stuff Press: Chrysler is pushing forward on electric cars Leasing falls to 4-year low GM: Currency shift stalled Astra Dealers say they can sell the Republican ticket Industry loans clash with GOP climate Grand Cherokee will get axles from new plant Makers must resist urge to backslide as gas price dips Times are tough outside the U.S., too Chevrolet does tout its small cars Let natural gas power the fuel cell A crash course in collaboration Dodge wouldn't rush the RamBox Plastics are losing cost advantage Suppliers expect to benefit from tougher CO2 rules 'People just want Ford to go' For now, Honda will skip electric vehicles Toyota, Subaru enter race to market electric vehicles China exports squeezed Study: 15% of wrecked autos got washed titles Mercedes megadealer is bullish on luxury Sheehy: 'We are not in business for nostalgia' Automakers use driving schools as marketing tools Dodge smoothes Ram's rough edges â a little Honda touts leasing while others fall back Alysha Webb Study: Nonprime car loans get longer Dealer CPA group picks leader BMW, Edmunds team up on loan site for consumers Va. Honda dealership loses protest bid Judge throws out deceptive-ads lawsuit against Toyota in Arkansas Mo. dealership's protest gets go-ahead Pa. court throws out suit against Ford, dealership Dealers Ross' interiors company pushes into China, India More than a game Nissan's Tavares: Green conference keynoter Quality group seeks to set consulting standards Personnel Dana to shift HQ by Sept. '09 Tenneco to supply Volvo XC60 BMW gets Siemens conveyors IAC to cut 280 jobs in Sweden Polytec to acquire Peguform Metaldyne to sell Italy operation Federal-Mogul to build India plant Beck, Delphi make pact TRW to supply Chinese sedan Auto profits rise in Russia Black Book expands data Hayes Lemmerz cuts losses Ford: Buyouts are a tough sell GM's party plans include production Volt An ice-cold August for auto sales Big drop in Aug. output Lights, camera . . . Volt? In case the roads get too quiet . . . The Insight rides again Lagonda brand will be back Milwaukee road trip: No old pals, but 1 new lesson Choice of Odell seen as Ford vote of confidence in Volvo Dana sort of wins an award Automotive News - September 8, 2008 Automotive News - September 8, 2008 - (Page Introducti) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 1) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 2) Automotive News - September 8, 2008 - Toyota delays RAV4 plan (Page 3) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 4) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 5) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 6) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 7) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 8) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 9) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 10) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 11) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 12) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 13) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 14) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 15) Automotive News - September 8, 2008 - Suppliers expect to benefit from tougher CO2 rules (Page 16) Automotive News - September 8, 2008 - 'People just want Ford to go' (Page 16A) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16B) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16C) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16D) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 17) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 18) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 19) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 20) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 21) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 22) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 23) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 24) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 25) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 26) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 27) Automotive News - September 8, 2008 - Automakers use driving schools as marketing tools (Page 28) Automotive News - September 8, 2008 - Dodge smoothes Ram's rough edges â a little (Page 29) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 30) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 31) Automotive News - September 8, 2008 - Judge throws out deceptive-ads lawsuit against Toyota in Arkansas (Page 32) Automotive News - September 8, 2008 - Pa. court throws out suit against Ford, dealership (Page 33) Automotive News - September 8, 2008 - Dealers (Page 34) Automotive News - September 8, 2008 - More than a game (Page 35) Automotive News - September 8, 2008 - Personnel (Page 36) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 37) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 38) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 39) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 40) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 41) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 42) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 43) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 44) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 45) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 46) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 47) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 48) Automotive News - September 8, 2008 - Big drop in Aug. output (Page 49) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 50) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 51) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 52)
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