GNYADA December 2013 Newsletter

1 Dealers Meet With Governor Cuomo to Gain Franchise Bill Support

dealer licenses to expedite the licensing process.

At the meeting the dealers voiced the need for the passage of the Franchise Reform Act. An extremely positive and extensive discussion of the Act left dealers highly encouraged by the Governor’s responses. This bill, which is the product of more than two years of negotiations with the vehicle manu- facturers, needs to pass both houses of the Legislature before it would go to the Governor. The group also acknowledged Governor Cuomo’s assistance with several initiatives that helped dealers, including signing a bill allowing deal- ers to obtain titles without liens for trade-ins, establishing a secure power of attorney pilot program, and adopt- ing regulations to allow temporary the dealer failed to meet deadlines to perform a facility upgrade. (The renovation was held up waiting for permits.) In May, Subaru sent a second termi- nation notice, alleging the dealer failed to cure the defects it cited in the first notice, and the dealer sued. The dealer raised several grounds in its complaint against Subaru and alleges that Subaru took additional steps that were detrimental to the dealer. Subaru moved for dismissal. The Judge refused, finding the dealer had merit in each of the grounds raised in the complaint. The judge also noted that the dealer has a valid action to recover attorney’s fees, under the franchise law.

GNYADA would like to thank Lou Roberti of Arroway Chevrolet Cadillac for helping facilitate this important meeting. GNYADA, its members, and the members of dealer associations across the state are keep- ing up efforts to secure additional leg- islative support for the Franchise Reform Act. GNYADA has had meetings with many key Legislative leaders, Senators and Assembly members with more to follow, including Senate Democratic Leader Andrea Stewart- Cousins and Senator Kemp Hannon of Long Island.

Governor Andrew Cuomo

Dealers from around the State, along with all of the regional Dealer Associations and the State Association, met with Governor Cuomo to discuss ongoing efforts to amend the New York Franchised Motor Vehicle Dealer Act (“Franchise Law”).

Dealer Blocks Franchise Termination 2

Subaru’s attempt to terminate a New York dealer has been put on hold and the dealer’s rights are being pro- tected in state court, under provisions of the Dealer Franchise Act that GNYADA successfully added in 2008. Following the factory’s attempt to terminate the dealer, the dealer brought an action to challenge that termination and to block it until the case is resolved. The court granted the dealer’s motion for a preliminary injunction staying the termination and the suit is pro- ceeding. Backstory The case involves a complicated set of facts, but central to the story is that Subaru sent a termination letter to the dealer in April 2013, because, it said,

The provision calling for a stay of the termination (that GNYADA added to the Franchise Law in 2008) was key to allowing the dealer to maintain this action and his dealership until the suit is resolved, at the very least.

Call the Association for your copy of the Franchise Law booklet.

Greater New York Automobile Dealers Association •

The Newsletter • December 2013


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