A.C. Collins Ford, Inc. v. Ford Motor Co.

807 S.W.2d 755, 1990 WL 283598
CourtCourt of Appeals of Texas
DecidedMarch 20, 1991
Docket08-90-00089-CV
StatusPublished
Cited by17 cases

This text of 807 S.W.2d 755 (A.C. Collins Ford, Inc. v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.C. Collins Ford, Inc. v. Ford Motor Co., 807 S.W.2d 755, 1990 WL 283598 (Tex. Ct. App. 1991).

Opinions

OPINION

OSBORN, Chief Judge.

This is an appeal from a summary judgment denying recovery sought by an automobile dealer from the vehicle manufacturer resulting from the manufacturer’s refusal to permit the dealer the right to relocate his operations from a location in Pasadena, Texas to the Gulf Freeway. We affirm.

A.C. Collins (now deceased) was an employee of Ford Motor Company from May 1, 1956 to September 30, 1967. He left the company and for two years was the general manager for a Ford dealer in Houston. In 1969 Collins bought the Ford dealership located at 1616 South Richey in Pasadena, Texas and became the principal owner of A.C. Collins Ford, Inc. Within a few years as business declined, he requested the right to relocate his dealership on the Gulf Freeway between Houston and Galveston in the vicinity of the Almeda Mall. It was his belief that his dealership should be in a high traffic area on the freeway and near a major shopping center. Under the terms of his dealership agreement with Ford, the manufacturer retained the right to approve a dealership location but included an “expressed intention to deal fairly with its dealers,.... ” Ford made periodic growth studies to determine the proper location or relocation for its dealerships. Houston area market studies were made in 1973, 1977, 1980, 1983 and 1985.

[757]*757Mr. Collins in his deposition testified that the area where his company was located began to deteriorate with a general economic decline in automotive sales in 1974. On February 25, 1974 he wrote to Mr. R.E. Parr, District Sales Manager for Ford, requesting approval to relocate this dealership. In that letter he noted the rapid deterioration of his location, both facilities and area, and said he felt “that the only advantageous site would be in the vicinity of the Almeda Shopping Center.” In September 1974, Mr. Collins received a report from Vallone and Associates, Realtors, which reflected a traffic count on South Richey of 14,635 cars per day compared to a count of 61,620 on the Gulf Freeway. He was advised as to 20 acres that was available at a cost of $784,080.00. On April 16, 1975, Mr. Collins again wrote to R.E. Parr, requesting approval for relocation on 20 acres on the Freeway. He was advised by Mr. Parr that Ford’s studies showed that there was no need to move at that time. Mr. Collins did not agree with that decision and felt it was wrong. In April 1976, Mr. Parr wrote to A.C. Collins and said, “[Relocation to the Gulf Freeway would not be in the best interests of the Pasadena automobile buying public or the Houston metropolitan market representation pattern. Thus, your request for relocation out of your primary market area to the Gulf Freeway must be denied.” The letter suggested he could “search out an alternate location within your primary market area....” In October 1977, Mr. Collins wrote to A.T. Buddin, District Sales Manager for Ford concerning loss of part of their frontage area on Richey Street. He wrote, “[ijnas-much as the results of the Market Study indicate we should stay where we are for the foreseeable future, it appears our problems will only get worse.” He mentioned the possible relocation to a former Dodge automobile facility on a ten-acre tract near his then existing location. Later, Mr. Collins was told that Ford would not authorize a move to the Freeway, but would agree for him to move a couple of blocks to the former Dodge facility in order to have more space for his operations. That move was made in December 1978. With regard to that move, he testified, “I knew it was wrong to move there. I told them. I begged and I pleaded and got on my knees. And I’m really not that type of fellow.” He said he was told by the people at Ford, “we need representation in Pasadena.” He said in his deposition:

Q Now, did you disagree with what they were saying about the need to serve Pasadena?
A Certainly, yes, sir.
Q You knew they were wrong?
A No question about it.
[[Image here]]
Q So, it was clear to you even back then that their system of evaluating the information and the kind of information they looked at was flawed?
A In my case, yes. I can’t talk about others.
[[Image here]]
Q Anything else that makes you think that Ford actually knew by early 1977 that you should have been relocated?
A Nothing that I haven’t stated that I can think of.
Q Now, are you saying that before then you suspected Ford knew you ought to relocate, but you didn’t and they just weren’t going to let you?
A I knew I should have been relocated.
Q I understand that you knew that you ought to be relocated.
A Yes.
Q And you knew that from the beginning, right?
A Yes, sir.

With regard to the market analysis that Ford performed periodically, it was clear to Mr. Collins that there were defects in their studies and conclusions. In his deposition he testified:

Q In 1977, you knew they hadn’t driven the market and didn’t know anything about the market?
A It’s in your records, sir, yes.
Q And in 1980, it’s clear to you they didn’t know anything about your market and they were just wrong and that they hadn’t driven the market?
[758]*758A Yes.
Q And you knew that in, I guess, all the years in between and all the time up to 1985?
A In my mind, yes.

On January 2, 1985, Mr. Collins wrote to Mr. Ryan and said among other things, “[t]his is to put you on formal notice that I will wait no longer_ When the company relocated me ½ block from my old dealership I went on record and stated that Richey street was deteriorating and the traffic count was less than 10,000 per day and that I should be moved to the Gulf Freeway with. 100 to 150 thousand traffic count. This is a matter of Ford Motor Company record.” Following a meeting with Mr. Ryan on January 11, 1985, Mr. Collins wrote a follow-up letter four days later. He summarized his problems beginning with his move in 1978 which he said he protested but was overruled by Ford. He noted that he had at that time offered to take an option on 29 acres across from the Almeda Mall. With regard to the three options discussed including staying at his present location, relocating at Beltway 8 and Spencer and relocating on the Gulf Freeway in the Almeda area, he wrote, “[t]his, by the way, is what I wanted to do with the 29 acres that I wanted to relocate to 6 years ago.” In February 1985, Mr. Collins received a letter from a new District Sales Manager, M.J. Ellsworth, indicating the decision to relocate his dealership at its present site was a sound decision based on information available at that time and indicating that based on current information, which he included, there should be no relocation at that time. Mr. Collins responded by return mail. He was emphatic when he wrote:

I must reiterate that my position is worsening. I have fought this relocation problem since early 1974.

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Cite This Page — Counsel Stack

Bluebook (online)
807 S.W.2d 755, 1990 WL 283598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ac-collins-ford-inc-v-ford-motor-co-texapp-1991.