GPI AL-N, Inc. v. Nissan North America, Inc.

CourtDistrict Court, S.D. Alabama
DecidedSeptember 10, 2018
Docket1:17-cv-00511
StatusUnknown

This text of GPI AL-N, Inc. v. Nissan North America, Inc. (GPI AL-N, Inc. v. Nissan North America, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GPI AL-N, Inc. v. Nissan North America, Inc., (S.D. Ala. 2018).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

GPI AL-N, INC., ) ) Plaintiff, ) ) v. ) CIVIL ACTION 17-0511-WS-MU ) NISSAN NORTH AMERICA, INC., ) ) Defendant. )

ORDER This matter comes before the Court on the Motion to Intervene by MB Nissan West Mobile, LLC (doc. 30). The Motion has been extensively briefed and is now ripe.1 I. Background. Plaintiff, GPI AL-N, Inc. d/b/a Nissan of Mobile (“Nissan of Mobile”), commenced this action by filing suit against defendant, Nissan North America, Inc. (“NNA”), on November 6, 2017. According to the Amended and Restated Complaint (doc. 46), Nissan of Mobile and NNA are parties to a Nissan Dealer Sales & Service Agreement, whereby Nissan of Mobile sells Nissan brand vehicles and parts, and provides service for Nissan brand vehicles, in Mobile County, Alabama. This lawsuit arises from NNA’s decision in February 2017 to enter into a Nissan Dealer Sales & Service Agreement with another entity (non-party MB Nissan West

1 Also pending is the Motion to Seal (doc. 41) filed by plaintiff, GPI AL-N, Inc. Through this Motion, plaintiff seeks to seal three exhibits filed with its opposition brief to the Motion to Intervene. Contrary to plaintiff’s argument, sealing is not required merely because the documents are subject to a protective order. See, e.g., Arnold v. Bayview Loan Servicing, LLC, 2016 WL 375154, *2 (S.D. Ala. Jan. 29, 2016) (“Federal courts have long recognized a strong presumption in favor of allowing public access to judicial records. … Litigants may not override that presumption by simply referencing a protective order.”) (citations and internal quotation marks omitted). Nonetheless, the Court agrees with plaintiff that the compelling private interests in maintaining the confidentiality of those exhibits outweigh the public’s interest in accessing judicial records. Because the Rule 26 good cause balancing test favors sealing the exhibits, plaintiff’s Motion to Seal is granted, and plaintiff’s Exhibits 1, 2 and 3 (found at docket entry 42) are sealed pursuant to General L.R. 5.2 for the duration of this litigation. Mobile, LLC) to operate a Nissan dealership in west Mobile, Alabama, at a location less than ten miles from Nissan of Mobile’s dealership. Plaintiff alleges that NNA’s conduct violates Alabama’s Motor Vehicle Franchise Act, Ala. Code §§ 8-20-1 et seq., because (i) the appointment of an additional Nissan dealer is unreasonable under the circumstances, in violation of Ala. Code § 8-20-4(3)(l); (ii) NNA has coerced Nissan of Mobile to adhere to performance standards that are not fair, reasonable or equitable, in violation of Ala. Code § 8-20-4(1)(h); (iii) NNA’s actions in appointing a new dealer were arbitrary, unconscionable, unreasonable and/or not in good faith, in violation of Ala. Code § 8-20-4(2); and (iv) NNA’s actions breached its duty of good faith and fair dealing owed to Nissan of Mobile, in violation of Ala. Code § 8-20-4.1. Plaintiff also brings claims against NNA for breach of contract, alleging that NNA breached the Dealer Agreement by failing to notify Nissan of Mobile of the results of its market study and final decision, failing to provide Nissan of Mobile an opportunity to object, and failing to utilize reasonable criteria in evaluating Nissan of Mobile’s sales performance. The ad damnum clause of the Amended Complaint reflects that Nissan of Mobile seeks considerable equitable relief, including “issuance of a permanent injunction prohibiting NNA from entering into a Dealer Agreement pursuant to the notice issued to Nissan of Mobile,” and “issuance of a permanent injunction prohibiting NNA from taking any action based upon its creation of an open point in west Mobile in 2017.” (Doc. 46, at 8.) In short, Nissan of Mobile seeks to enjoin NNA from appointing MB Nissan West Mobile, LLC (“Nissan West Mobile”) or anyone else to operate a Nissan dealership in west Mobile. Plaintiff further demands “a declaratory judgment that the economic and marketing conditions of the Mobile, Alabama market do not reasonably justify the addition of a second Nissan brand dealership” in that market area. (Id.) The natural outcome and plain effect of a ruling granting Nissan of Mobile’s requested relief on these issues would be to prevent Nissan West Mobile from being able to enter into a Dealer Agreement with NNA and to operate a Nissan dealership in west Mobile. Originally, Nissan West Mobile was not a party to these proceedings, despite the potentially debilitating ramifications of plaintiff’s claims on that entity. On August 2, 2018, however, Nissan West Mobile filed a Motion to Intervene (doc. 30), requesting leave to intervene in this matter as a defendant both as a matter of right, pursuant to Rule 24(a)(2), Fed.R.Civ.P., and permissively, pursuant to Rule 24(b), Fed.R.Civ.P. Accompanying Nissan West Mobile’s Motion is its Proposed Answer and Defenses (doc. 30-1) to plaintiff’s original Complaint (which plaintiff subsequently amended). Defendant, NNA, has filed a memorandum of law in support of the Motion to Intervene. (See doc. 39.) Plaintiff, Nissan of Mobile, has filed a memorandum of law in opposition to that Motion. (See doc. 40.) II. Analysis. A. Intervention as of Right under Rule 24(a)(2). “Rule 24 provides two avenues for a nonparty to intervene in a lawsuit; intervention as of right and intervention with permission of the court.” In re Bayshore Ford Trucks Sales, Inc., 471 F.3d 1233, 1246 (11th Cir. 2006). To intervene as of right pursuant to Rule 24(a)(2), a person “must show that: (1) [its] application to intervene is timely; (2) [it has] an interest relating to the property or transaction which is the subject of the action; (3) [it is] so situated that disposition of the action, as a practical matter, may impede or impair [its] ability to protect that interest; and (4) [its] interest is represented inadequately by the existing parties to the suit.” Technology Training Associates, Inc. v. Buccaneers Limited Partnership, 874 F.3d 692, 695-96 (11th Cir. 2017) (citation omitted). Plaintiff’s position is that Nissan West Mobile cannot intervene as of right because the Motion is untimely, it lacks any interest in the subject matter of the suit, and the existing parties can adequately protect whatever interest Nissan West Mobile might have. The Court considers each of these arguments in turn. First, the parties dispute whether Nissan West Mobile’s Motion to Intervene is timely. “In determining whether a motion to intervene was timely, we consider (1) the length of time during which the proposed intervenor knew or reasonably should have known of the interest in the case before moving to intervene; (2) the extent of prejudice to the existing parties as a result of the proposed intervenor’s failure to move for intervention as soon as it knew or reasonably should have known of its interest; (3) the extent of prejudice to the proposed intervenor if the motion is denied; and (4) the existence of unusual circumstances militating either for or against a determination that their motion was timely.” Georgia v. U.S.

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Bluebook (online)
GPI AL-N, Inc. v. Nissan North America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gpi-al-n-inc-v-nissan-north-america-inc-alsd-2018.