The U.S. Supreme Court on Monday refused to weigh in on a dispute over the constitutionality of a law that allowed Chrysler dealerships shut down during the company’s 2009 bankruptcy to be restored through arbitration, The Detroit News reported.
Fred Martin Motor Co. of Akron, Ohio -- which remained a Chrysler dealership through the bankruptcy -- had sued to block the reinstatement of Spitzer Autoworld Akron. Spitzer, in the same market as Fred Martin, had its franchise agreement terminated during the bankruptcy, but it was reinstated in arbitration against Chrysler. Spitzer sued to block Spitzer’s reinstatement, arguing that state franchise laws trumped the federal law in 2009 that gave dealers a chance to reopen, the News reported.
The 6th U.S. Circuit Court of Appeals ruled the law doesn’t interfere with a bankruptcy court order, the News said. The ruling will stand after the Supreme Court declined to take up the case.