An Illinois judge on Friday granted Carvana Co.'s request to halt the Illinois Secretary of State's latest revocation of its license to sell vehicles in the state.
The development comes days after the regulatory agency re-suspended Carvana's dealer license, a move aimed at prohibiting new sales by the online used-vehicle retailer. The agency at the time said it took the action because it found the company was not transferring vehicle titles within 20 days of sale or properly issuing temporary registrations.
But Carvana last week filed a motion for a temporary restraining order and injunctive relief against Secretary of State Jesse White, according to court records. That was ultimately granted by Judge Bonnie Wheaton of the 18th Judicial Circuit Court in DuPage County.
The agency is forbidden from "suspending or revoking" Carvana's certificates of authority and dealer plates, according to Wheaton's order.
"We sincerely appreciate the support from our Illinois customers and are excited to continue to serve them while we continue working with (Illinois SOS) to resolve its concerns and hopefully improve the title and registration system itself for the benefit of everyone in Illinois who purchases a car," a Carvana spokesperson said in a statement.
"Due to the judge’s decision in the circuit court in DuPage County to grant Carvana’s request for a temporary restraining order, the Secretary of State’s order has been reinstated, allowing Carvana to conduct business in Illinois under strict guidelines," Illinois Secretary of State Dave Druker said in an emailed statement to Automotive News. "During the reinstituted stay, Carvana is allowed to sell vehicles to Illinoisans, but Carvana cannot issue temporary registration permits or license plates during this stay order."
Carvana is also supposed to register titles through Illinois remitters — third-party entities licensed in Illinois to process title transactions, Druker said.
The next action on the case will take place Aug. 30, according to court records.