Autoblog

Chrysler vs. Pure Detroit "Imported From Detroit" legal dustup settled

Jeff Sabatini — Wed, 25 Apr 2012 17:25:00 EST

Filed under: Government/Legal, Marketing/Advertising, Chrysler

Chrysler and Pure Detroit have agreed to a settlement in the legal wrangling over Chrysler's "Imported from Detroit" tagline. According to The Detroit News, the automaker and T-shirt purveyor have asked a judge to dismiss the lawsuits against one another. Terms of the agreement were not disclosed.

Chrysler had sued the entrepreneurial company in March 2011, after Pure Detroit sought to cash in on the popularity of the phrase following last year's Super Bowl ad featuring Eminem. Chrysler has its own line of "Imported" merchandise, which it has used to fund charitable organizations. Pure Detroit counter-sued and went on selling its wares after a judge refused to grant Chrysler an injunction against the smaller company in June 2011, according to the report. Pure Detroit maintained that Chrysler's campaign "amounts to false advertising," said the News, because none of the vehicles (the 200, 300 and Town & Country) shown in the ads are built within Detroit proper.

The pair of legal combatants had agreed to mediation in March. Their resultant deal should preempt a trial that would have taken place in August.

Chrysler vs. Pure Detroit "Imported From Detroit" legal dustup settled originally appeared on Autoblog on Wed, 25 Apr 2012 17:25:00 EST. Please see our terms for use of feeds.

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Judge won't dismiss Chrysler dealer termination suit stemming from '09 bankruptcy

Jeff Sabatini — Wed, 29 Feb 2012 13:59:00 EST

Filed under: Car Buying, Government/Legal, Chrysler, Earnings/Financials

A Federal judge will allow some 75 Chrysler dealers to proceed with a lawsuit against the U.S. Treasury Department, according to Automotive News. The dealers insist that the government violated the Fifth Amendment in administrating the Chrysler bankruptcy when it terminated their dealership franchises.

The lawsuit asks for some $200 million in damages, according to the report, but does not name the bankrupt automaker. Chrysler shed 789 dealers as part of its 2009 bankruptcy, a process that has led to no shortage of lawsuits and angry former stakeholders.

Whether the ranks of jilted dealers participating in the suit will swell remains to be seen. AN quotes the dealers' attorney, Leonard Bellavia of Mineola, N.Y., as saying, "We received a very important decision today. After this decision, I expect those dealers sitting on the sidelines to join the case."

The lawsuit, filed last February, will now move to discovery, according to Bellavia, who told AN he plans to depose Treasury officials who worked on the auto task force headed by "Car Czar" Stephen L. Rattner.

Judge won't dismiss Chrysler dealer termination suit stemming from '09 bankruptcy originally appeared on Autoblog on Wed, 29 Feb 2012 13:59:00 EST. Please see our terms for use of feeds.

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Chrysler legal bid to halt 'Imported From Detroit' merchandise sales falls short

Zach Bowman — Wed, 29 Jun 2011 11:02:00 EST

Filed under: Government/Legal, Chrysler

Automotive News is reporting that Chrysler has failed to stop a clothing manufacturer from selling "Imported from Detroit" apparel on the grounds of trademark infringement. U.S. District Judge Arthur Tarnow ruled in favor of Pure Detroit, saying that the automaker's request failed to show that the manufacturer would suffer any irreparable harm by the apparel company's actions. The judge also pointed out that Chrysler doesn't actually have a trademark on the "Imported from Detroit" slogan. After Chrysler aired its ad for the company's 200 during this year's Super Bowl, Pure Detroit began churning out T-shirts. The automaker sued Moda Group in March, and Pure Detroit counter sued in April.

The clothing maker's suit argued that Chrysler doesn't hold a trademark on the phrase in part because of the fact that the slogan is geographical and somewhat misleading, as Chrysler is actually based in Auburn Hills and the 200 is assembled in Sterling Heights. Apparently Judge Tarnow agrees with Pure Detroit's assessment.

Chrysler legal bid to halt 'Imported From Detroit' merchandise sales falls short originally appeared on Autoblog on Wed, 29 Jun 2011 11:02:00 EST. Please see our terms for use of feeds.

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Report: 64 axed Chrysler franchisees file suit against U.S. Treasury

Jeff Glucker — Fri, 18 Feb 2011 09:57:00 EST

Filed under: Government/Legal, Chrysler

Back in June of 2009, Chrysler terminated relationships with 789 dealerships in an effort to cut its dealer network down by 25 percent. A few of those dealerships didn't think too highly of the move, which was orchestrated in part by the federal government. As a result, 64 former Chrysler franchisees have reportedly filed a suit against the United States Treasury and are seeking at least $130 million in damages.

Was the move to terminate these dealerships a violation of the U.S. Constitution? According to the lawsuit, the automotive task force violated the Fifth Amendment, which essentially states that property cannot be taken away and used for public purposes without adequate compensation.

[Source: Automotive News - sub. req. | Image: Drew Phillips/AOL]

Report: 64 axed Chrysler franchisees file suit against U.S. Treasury originally appeared on Autoblog on Fri, 18 Feb 2011 09:57:00 EST. Please see our terms for use of feeds.

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Report: Chrysler wins 73 of its dealer arbitration cases, loses 32

Zach Bowman — Wed, 28 Jul 2010 11:01:00 EST

Filed under: Car Buying, Government/Legal, Chrysler

Arbitrators have finished wading through the 105 cases of rejected Chrysler dealerships, determining that Chrysler was right to send the lots packing in 73 instances. According to Automotive News, those who weighed in on the cases typically cited the carmaker's plans to sell all four of its brands through the same dealerships as reason enough for ousting those that couldn't come up with the facilities to do so.

Chrysler offered around 232 dealers the chance to return to the company after kicking 789 sites off of the corporate life boat. The 32 dealerships that won their cases were part of the group that received the Pentastar olive branch, but to date, only 29 of the 232 have signed letters of intent with Chrysler that outline their terms of reinstatement. Few of those that won their arbitration case have accepted the letter of intent, though that number is expected to grow over the next few months.

There is some indication, however, that not every dealer is happy with their final agreements. Some have come forward with complaints that the terms of reinstatement are harder for those that got the boot than for dealerships that managed to survive the company's bankruptcy. Calls for facility upgrades have caused at least two dealers to file lawsuits contesting the letters of intent.

[Source: Automotive News - sub. req.| Image: Jeff Robertson/AP]

Report: Chrysler wins 73 of its dealer arbitration cases, loses 32 originally appeared on Autoblog on Wed, 28 Jul 2010 11:01:00 EST. Please see our terms for use of feeds.

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Detroit News: Chrysler sues multiple states over dealer laws

Dan Roth — Sun, 03 Jan 2010 15:42:00 EST

Filed under: Etc., Government/Legal, Chrysler

So you're Chrysler, and you hop into the Chapter 11 pool to save your own skin. While you can wash away some of your past sins with a bankruptcy-protection filing, the deal with Chapter 11 is that you've got to come up with a way to get out of your financial pickle and return to profitability. Part of the Chrysler plan to keep its head above water was divestiture of 789 dealers, a very unpopular idea with the rejected sales organizations (and no small number of politicians, whose ears were subsequently bent by the affected dealers).

When adversity strikes, what else is there to do but unleash legislative changes and legal challenges to and fro like archers' arrows? Recent alterations to dealer laws in Oregon, Maine, North Carolina and Illinois contradict bankruptcy code and are unconstitutional. The new laws allow the states to block Chryser from granting a new franchise or relocating an existing dealership into a market once belonging to a rejected dealer.

In response, Chrysler has fired off a lawsuit in Manhattan bankruptcy court naming eight parties as defendants, including the Oregon Attorney General, secretaries of state in Maine and Illinois, and other transportation officials. The filing argues that the laws being contested would force Chrysler to give consideration to the dealers for rights that they do not have, and furthermore, the dealer rejections were approved as part of the sale to Fiat.

[Source: The Detroit News]

Detroit News: Chrysler sues multiple states over dealer laws originally appeared on Autoblog on Sun, 03 Jan 2010 15:42:00 EST. Please see our terms for use of feeds.

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