After having been forced to terminate their commercial operations in 2009 following GM’s financial troubles, the 207 ex-dealers that feel they got a raw deal have been authorized to take legal action against the automaker and sue for 750 millions dollars in damages as a group.
The decision was made by Ontario Superior Court Justice G.R. Strathy. In a copy of his decision, Strathy writes “it is not realistic to think that an individual franchisee, who has experienced the loss of their business, is financially or psychologically equipped to engage in protracted, complicated and very expensive litigation with one of the largest corporations in North America”.
The dealers claim General Motors violated provincial law by excluding them from the Canadian and Ontarian bail-out plan. The automaker reportedly informed them they had to eliminate points of sale to receive any financial support, and if they refused to shut down their operations, GM would seek protection from its creditors.
GM spokesperson Tony LaRocca declined to comment.
Source: Automotive News
The decision was made by Ontario Superior Court Justice G.R. Strathy. In a copy of his decision, Strathy writes “it is not realistic to think that an individual franchisee, who has experienced the loss of their business, is financially or psychologically equipped to engage in protracted, complicated and very expensive litigation with one of the largest corporations in North America”.
The dealers claim General Motors violated provincial law by excluding them from the Canadian and Ontarian bail-out plan. The automaker reportedly informed them they had to eliminate points of sale to receive any financial support, and if they refused to shut down their operations, GM would seek protection from its creditors.
GM spokesperson Tony LaRocca declined to comment.
Source: Automotive News