BWM&S Fights for GM and Chrysler Dealers Seeking Reinstatement

Since General Motors and Chrysler collectively terminated over 3000 dealership franchises as part of their 2009 bankruptcies, over half of these dealers, and the families that own them, have been officially fighting back for reinstatement.

A significant number of dealers have chosen Burke, Warren to represent them as they fight for reinstatement. The firm will play a key role in upcoming arbitration hearings throughout the Midwest.

Legislation passed in December of last year allows terminated franchise holders to challenge their closures in arbitration. Based on the dealers’ recent profitability and the length of time that the dealers had been in business, arbiters will determine whether franchises are to be reinstated or not — a simple thumbs up or thumbs down. More than 1500 terminated dealers have filed to enter arbitration, which must be completed by mid-June of this year.

“In many cases, the dealer’s very existence depends on a favorable outcome at the arbitration,” the firm’s Ira M. Levin explains. “Some of the terminated dealers had been in business for decades and through generations of family members, and others had actually invested millions of dollars in state-of-the-art facilities with the encouragement of General Motors or Chrysler, only to be told they were not in their future plans.”

Bill Kelly and Ira Levin, leaders of the firm’s automobile franchise practice, are joined by Christina Nelson, Alex Marks, Kim Cloud and Nora Flaherty representing dealers in Illinois, Indiana, Michigan and Iowa. Arbitrations will take place in the states where dealers are located.

For more information, please contact Bill Kelly at wkelly@burkelaw.com and 312/840-7061 or Ira Levin at ilevin@burkelaw.com and 312/840-7065.