Legal File

California court case reworks technician pay plans

12:01 am U.S. ET | May 4, 2015

Dealers often bemoan California's legal climate. Two of their biggest legal headaches there are labor-law challenges and class-action lawsuits.... Read More »

Ex-dealership staffers face prison

12:01 am U.S. ET | March 30, 2015

Several former sales staffers at a Birmingham, Ala., Nissan store face federal prison time as part of a federal crackdown on fraudulent practices in car dealerships.... Read More »


W.Va. dealers lose fight with Ford over doc fees

12:01 am U.S. ET | July 9, 2014

A federal judge has dismissed a suit by the West Virginia Automobile & Truck Dealers Association that accuses Ford of violating a state law requiring all customers to be charged the same document fees.... Read More »

Hyundai hit with $14 million verdict in Virginia airbag trial

4:11 pm U.S. ET | July 1, 2013

A jury in Virginia decided that Hyundai Motor should pay $14 million to a man who suffered traumatic brain damage in a car accident after the side airbags in his 2008 Hyundai Tiburon coupe failed to deploy. A Hyundai spokesman said the automaker plans to appeal.... Read More »

Old GM creditors to mediate dispute over $3 billion in claims

1:39 pm U.S. ET | June 28, 2013

Creditors of General Motors' old assets in bankruptcy will start settlement talks with various Wall Street hedge funds over $3 billion in disputed claims.... Read More »

Jury favors Foltz in alphabet-soup legal skirmish

12:01 am U.S. ET | June 24, 2013

Things are A-OK at CFE after its courtroom TKO of BMF. The two suppliers -- Carl Foltz's CFE Racing of suburban Detroit and BMF Wheels of Orange, Calif. -- tangled in federal court in Detroit over use of the BMF name.... Read More »

U.S. lawsuit accuses vehicle shipping companies of price fixing

11:09 am U.S. ET | May 30, 2013

Several major import-vehicle shippers, which together are said to command 70 percent of the global car-shipping market, face allegations of price fixing in a civil lawsuit filed federal court.... Read More »


Dealership group ordered to pay off trade-ins on time

12:01 am U.S. ET | April 29, 2013

A Pacific Northwest auto dealership group and its principal have been ordered to pay off vehicles traded in at four of its stores in a timely manner after being sued by the state of Washington.... Read More »


Toyota store must defend airbag suit

12:01 am U.S. ET | April 22, 2013

A Toyota dealership that routinely serviced a 1995 Corolla for the original owner must defend a failure-to-warn airbag deployment suit brought by an injured plaintiff who bought the car used, a split Louisiana Court of Appeal panel has ruled.... Read More »


Ex-GM dealer fights fraud conviction

12:01 am U.S. ET | April 15, 2013

A former Florida auto dealer is appealing a federal judge's refusal to overturn his fraud and conspiracy conviction and 135-month prison sentence for engineering a floorplanning scam.... Read More »

Toyota store must pay crash victims $16 million

12:01 am U.S. ET | April 1, 2013

A Philadelphia jury has ordered a local Toyota dealership to pay six crash victims $15.7 million for its negligent maintenance and repair of the 2006 Toyota Sienna rental in which they were riding.... Read More »


Nissan store asks judge to rethink arbitration order

12:01 am U.S. ET | March 25, 2013

A Florida dealership that sued Nissan North America over remodeling funds must arbitrate the dispute, a federal judge ruled last month. Now the store wants the judge to reconsider.... Read More »

VW agrees to settle Audi CVT class-action case in U.S. court

1:02 pm U.S. ET | March 21, 2013

A federal judge has granted preliminary approval for the settlement of a class-action suit against Volkswagen Group of America over alleged defects with continuously variable transmissions in about 64,000 2002-06 Audi A4 and A6 models.... Read More »


Appeals panel OKs arbitration in buyer's tiff with store

12:01 am U.S. ET | Feb. 25, 2013

A California Court of Appeal panel has ordered the buyer of a 2006 Toyota Sequoia to arbitrate her dispute with the dealership that sold the vehicle. The panel rejected arguments brought by Andrea Naasz that the arbitration provision in her standard sales contract is unconscionable and unenforceable.... Read More »


Bergstrom resolves clash with Chrysler over Fiat points in Wis.

12:01 am U.S. ET | Jan. 28, 2013

Bergstrom Corp., Wisconsin's largest auto retailer, has settled its dispute with Chrysler Group over allocation of Fiat points in the state after its lawsuit against the automaker failed.... Read More »


Court: Ford store owes Edge buyer damages

12:01 am U.S. ET | Jan. 14, 2013

A Ford store in Baton Rouge, La., has lost its bid to overturn a $34,702 damage award to purchasers of a 2008 Edge demo who were not told that the vehicle had been seriously damaged in an accident while being driven by a dealership employee.... Read More »


Court: Honda dealer lacked basis to protest new point

12:01 am U.S. ET | Dec. 24, 2012

WMW Inc.'s Honda Carland in Roswell, Ga., argued that since the new point was within eight miles of its service-only operation in Alpharetta, Ga., the new point infringed on its relevant market area. But the Georgia Supreme Court ruled that that wasn't a good-enough basis for a protest.... Read More »


Former dealer in Minnesota gets prison for bad checks

12:01 am U.S. ET | Dec. 17, 2012

A former suburban Minneapolis dealer was sentenced to 45 months in prison after pleading guilty to three charges of theft by swindle.... Read More »


Ally ordered to pay dealer sanctions for lawsuit

12:01 am U.S. ET | Nov. 26, 2012

A federal judge in Pennsylvania has lambasted lawyers for Ally Financial, who "knew the utter falsity" of allegations made by Ally in its bid to collect $1.1 million from a former dealer and his closed dealerships.... Read More »


Ex-dealer likely to plead guilty to lender fraud

12:01 am U.S. ET | Nov. 19, 2012

A former car dealer in Grand Rapids, Minn., is expected to plead guilty to defrauding her floorplan lender of $1.5 million by exaggerating the cost of vehicles brought into inventory at her Ford store, federal court records show.... Read More »


Court: Wash. franchise law is for dealers only

12:01 am U.S. ET | Oct. 29, 2012

Washington state's franchise law doesn't cover prospective purchasers of dealerships, an appeals panel has ruled in a suit accusing Nissan North America Inc. of wrongfully refusing to approve a franchise transfer.... Read More »


Hawaii dealer pleads guilty to federal tax evasion

12:01 am U.S. ET | Oct. 1, 2012

A Honolulu dealer faces up to three years in prison and a $250,000 fine after pleading guilty to federal tax evasion.... Read More »


Ex-store president faces prison

12:01 am U.S. ET | Oct. 1, 2012

The president of a closed Ford dealership in Whitehall, Wis., is scheduled to appear in federal court Oct. 18 to plead guilty to defrauding his store's floorplan lender.... Read More »


Former dealer principal indicted

12:01 am U.S. ET | Oct. 1, 2012

The former dealer principal of a Nissan store in Elizabeth City, N.C., faces a November arraignment on wire fraud and money laundering charges of submitting “substantial false and misleading information relating to vehicles under floor plans” to Nissan Motor Acceptance Corp.... Read More »


Lender's mistake lets store founder off the hook

12:01 am U.S. ET | Sept. 24, 2012

A Wisconsin bank can't collect on a dealership co-founder's $3 million personal guaranty even though the dealership defaulted on floorplan and real estate loans, a Wisconsin Court of Appeals panel has ruled.... Read More »

Automotive News
Special Video Report
Colo. stores use cameras, computers to build transparency

Colo. stores use cameras, computers to build transparency

Planet Honda's technicians-turned-video directors are with one tap bringing the service bay to customers, while digital files are providing a clear snapshot of a used-car's history at Kuni Lexus of Greenwood...
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