November 09, 2005
Mercedes Dealer Sues Company For Violation of Right of First Refusal
The Ghesquiere family, owners of three Mercedes-Benz dealerships in Michigan, filed a lawsuit against the company in federal court on Monday alleging that Mercedes breached their right of first refusal when it granted another group the right to open a new dealership in their territory. According to one local news source, plaintiffs allege that they were granted a right of first refusal for an additional dealership in their 1999 agreement and that in the last several years, they asked Mercedes for permission to open a fourth dealership. Although plaintiffs' dealer agreement expired on May 31, 2003, they claim that Mercedes was planning to open an additional dealership before the contract expired. A Mercedes spokesperson stated that the company acted in good faith and that the lawsuit lacks merit.
Posted by franchiselawblog at November 9, 2005 11:45 AM