After a nonjury trial, a federal judge has upheld General Motors' two-step process for reimbursing Maine dealerships for warranty repairs.
U.S. District Judge George Singal also ruled that GM had the right to reject claims from a dealership group that failed to provide vehicle identification numbers and service-date information. The judge also said GM had the authority to charge back improperly paid claims.
GM filed the suit against Darling's Auto Mall in Ellsworth, Maine, which sells Buick, Pontiac and GMC vehicles. GM spokeswoman Brenda Rios said the company sued Darling's as a pro-active move because "the dealer had already been involved in dozens of lawsuits against other manufacturers, and he had communicated his intent to sue GM sooner or later."
Dealership President John Darling declined to discuss details of the case but said he will appeal.