Bill Call Ford, Inc. v. Ford Motor Co.

830 F. Supp. 1045, 1993 U.S. Dist. LEXIS 11587, 1993 WL 320096
CourtDistrict Court, N.D. Ohio
DecidedAugust 18, 1993
Docket5:91 CV 242
StatusPublished
Cited by2 cases

This text of 830 F. Supp. 1045 (Bill Call Ford, Inc. v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bill Call Ford, Inc. v. Ford Motor Co., 830 F. Supp. 1045, 1993 U.S. Dist. LEXIS 11587, 1993 WL 320096 (N.D. Ohio 1993).

Opinion

ORDER ADDRESSING COUNT SIX

SAM H. BELL, District Judge.

PREFACE

The parties have moved for summary judgment on all counts of the complaint. The court has addressed each motion by separate opinion. They are, in essence, a trilogy. Because some orders, for the sake of efficiency, reference others made in this matter, the court suggests that a reader peruse them in the order they were prepared. The order of drafting is this: (1) opinion addressing count eight, 830 F.Supp. 103k, (2) opinion addressing count six, 830 F.Supp. 10k5, (3) opinion addressing counts one, two,' three, four, five and seven, 830 F.Supp. 1053.

I. Introduction

Currently before the court is defendant’s motion for summary judgment on count six *1047 of plaintiffs’ complaint, Docket #46. In count six, the plaintiffs seek treble damages for the defendant’s alleged failure to adequately compensate plaintiffs for warranty service performed by them on behalf of Ford. (Amended Complaint at ¶¶ 19-20) The plaintiffs have responded to the motion relative to this count. The following opinion is devoted to the defendant's, motion.

II. Standard of Review

The court has previously addressed the summary judgment standards applicable to the instant matter. (See Order Addressing Count Eight). To avoid needless repetition, those standards have been omitted in this opinion although they are, of course, a pertinent guide for review of the instant motion. If particularly germane, the court shall revisit the dictates of Rule 56 in the legal analysis which follows.

III. Law and Analysis

Ford raises five grounds in support of its motion for summary judgment: 1) that count six is barred because appeal to the Dealer Policy Board is a condition precedent to filing any lawsuit, 2) Count six is barred by the applicable one year statute of limitations, 3) count six is barred by reason of Call Ford’s failure to exhaust administrative remedies, 4) the current version of § 4517.52 cannot be applied to the pre-existing contract between the parties, and 5) Call Ford is estopped from asserting or has waived the claim made in count six. The court shall address these contentions seriatim.

On March 14, 1980, the following law passed by Ohio General Assembly came into effect:

(A) Each franchisor shall adequately and fairly compensate each of its franchisees for labor and parts used to fulfill warranty and recall obligations or repair and servicing. Each franchisor shall file a copy of its warranty and recall reimbursement schedules or file a copy of its warranty and recall reimbursements schedules or formulas with the motor vehicle dealers board. The schedules or formulas shall be reasonable with respect to the time and compensation allowed a franchisee for the warranty and recall work, reimbursement procedures, and all other conditions of such obligations. The reasonableness of the schedules or formulas shall be subject to the determination of the board, when a franchisee or dealer organization files a notice of protest with the board.
(B) In determining the adequacy and fairness of a franchisor’s warranty and recall reimbursement schedules or formulas, the principal factors to be considered by the board shall be the prevailing wage rates being paid by the franchisee in the community in which the franchisee is doing business, except that the compensation of a franchisee for warranty and recall service and parts shall not be at less than the rates charged by the franchisee to its retail customers for like service and parts for nonwarranty work. The schedules or formulas shall include a reasonable allowance of time for the diagnosis and performance of repairs by a technician of ordinary skill.

Ohio Rev.Code § 4517.52 (1980), amended by, Ohio Rev.Code § 4517.52 (1987) (See Defendant’s Exhibit 4).

On October 1, 1980, Call Ford and Ford executed a Sales and Service Agreement [hereinafter “Franchise Agreement”], pursuant to which plaintiffs operated as a Ford’ dealer in Mansfield, Ohio. Pursuant to that agreement, Ford would reimburse plaintiff for warranty work in accordance with the provisions of the warranty manual or campaign instructions and the dealer’s approved warranty rate. (See Franchise Agreement,Defendant’s Appendix, Exhibit 1 at 8 ¶ 4(b)(4)) In so doing, Call Ford submitted warranty reimbursement claims to Ford through Ford’s Direct Warranty Entry (“DWE”) system (a software package for submitting claims which provides overnight notification of the claims’ disposition). (Defendant’s Motion, Docket #46, Exhibit 1 at ¶ 7).

The Franchise Agreement also provided: Any protest, controversy or claim by a Dealer (whether for damages, stay of action or otherwise) with respect to any termination or nonrenewal of this agreement by the Company after any termination or nonrenewal of this agreement by the Company or the Dealer has become effective, *1048 shall be appealed by the Dealer to the Policy Board within fifteen (15) days after the Dealer’s receipt of notice of termination or nonrenewal, or as to settlement of accounts after termination or nonrenewal, within one year after the termination or nonrenewal has become effective. Appeal to the Policy Board shall be a condition precedent to the Dealer’s right to pursue any other remedy available under this agreement or otherwise available under law. The Company, but not the Dealer, shall be bound by the decision of the Policy Board.

Effective October 22, 1987, Ohio repealed the then existing version of § 4517.52 and enacted the following version:

(A) Each franchisor shall compensate each of its franchisees for labor and parts used to fulfill warranty and recall obligations of repair and servicing at rates not less than the rates charged by the franchisee to its retail customers for like service and parts for non-warranty work.

Ohio Rev.Code § '4517.52.

The defendant argues that paragraph 18(b) of the Franchise Agreement establishes a condition precedent to the claim raised by count six and that, having failed to satisfy this condition, plaintiffs’ claim is barred. The court agrees.

Paragraph 18(b) of the Franchise Agreement provides that any claim by the dealer with respect to the settlement of the accounts of the Dealer and the Company after termination of the .Franchise Agreement shall be appealed by the Dealer to the Policy board within one year after the termination has become effective. (See Franchise Agreement, Defendant’s Appendix, Exhibit 1 at 17 ¶ 18(b)). The contract specifically provides that such appeal is a condition precedent to “the Dealer’s right to pursue any other remedy available under [the franchise agreement] or otherwise available under law.” (Id.)

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Related

Bill Call Ford, Inc. v. Ford Motor Co.
830 F. Supp. 1053 (N.D. Ohio, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
830 F. Supp. 1045, 1993 U.S. Dist. LEXIS 11587, 1993 WL 320096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-call-ford-inc-v-ford-motor-co-ohnd-1993.