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Car dealership sues Mitsubishi for purported unfair practices

Owning a franchise will have its own unique set of challenges. The franchisee will not have the same level of control over the business as would other retailers as the franchisor is responsible for setting a number of the conditions.

The owner of one Southern California car dealership has found itself at odds with the franchisor. The franchisor in this case is Mitsubishi. The car dealer claims that Mitsubishi required dealerships to increase the amount of inventory on the car lots in order to meet certain production numbers. These requirements apparently also resulted in dealers paying more in finance charges. This particular dealer claims that he was forced to stock more motor vehicles than the dealership could sell.

The dealer is claiming that Mitsubishi breached its contract and engaged in unfair business practices. This in turn would also have resulted in unfair enrichment for Mitsubishi. This dealer had locations selling the vehicles in Victorville, Costa Mesa, Cerritos and Huntington Beach. The dealer's attorney claims that Mitsubishi's practices caused this dealer approximately $10 million.

Business litigation comes in all types. The outcome of such litigation is often dependent upon the unique circumstances of each case and proving (or disproving) that any economic damages actually occurred.

These types of lawsuits can be costly and the outcome can often involve the exchanging of large sums of money. The attorneys representing the parties in this lawsuit have to be intimately familiar with the ordinary business practices of each party and understand what has led up to the dispute.

Source: The Tribune, "California dealer sues Mitsubishi over inventory," June 17, 2014

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