McNeilus Truck & Manufacturing, Inc. v. Ohio ex rel. Montgomery

226 F.3d 429, 2000 U.S. App. LEXIS 22238
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 31, 2000
DocketNo. 99-3219
StatusPublished
Cited by6 cases

This text of 226 F.3d 429 (McNeilus Truck & Manufacturing, Inc. v. Ohio ex rel. Montgomery) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNeilus Truck & Manufacturing, Inc. v. Ohio ex rel. Montgomery, 226 F.3d 429, 2000 U.S. App. LEXIS 22238 (6th Cir. 2000).

Opinion

[434]*434OPINION

BOGGS, Circuit Judge.

This case grew out of an Act of the legislature of the State of Ohio to amend the state’s dealer licensing laws. In the spring of 1996, the Ohio Bureau of Motor Vehicles (“OBMV”) told dealers of reman-ufactured vehicles they had to comply with certain requirements for licensing by March 31, 1996, failing which their dealer licenses would not be renewed upon their expiration that day. The OBMV backtracked later that year when state Senate Bill 182 amended and expanded the relevant laws, effective December 3, 1996. In pertinent part, the amended statute reads as follows:

Section 4617.02(E) No remanufacturer shall engage in the business of selling at retail any new motor vehicle without having written authority from the manufacturer or distributor of the vehicle to sell new motor vehicles and to perform repairs under the terms of the manufacturer’s or distributor’s new motor vehicle warranty, unless, at the time of the sale of the vehicle, each customer is furnished with a binding agreement ensuring that the customer has the right to have the vehicle serviced or repaired by a new motor vehicle dealer who is franchised to sell and service vehicles of the same line-make as the chassis of the remanufactured vehicle purchased by the customer and whose service or repair facility is located within either twenty miles of the remanufacturer’s location and place of business or twenty miles of the customer’s residence or place of business. If there is no such new motor vehicle dealer located within twenty miles of the remanufacturer’s location and place of business or the customer’s residence or place of .business, the binding agreement furnished to the customer may be with the new motor vehicle dealer who is franchised to sell and service vehicles of the same line-make as the chassis of the remanufac-tured vehicle purchased by the customer and whose service or repair facility is located nearest to the remanufacturer’s location and place of business or the customer’s residence or place of business. Additionally, at the time of sale of any vehicle, each customer of the reman-ufacturer shall be furnished with a warranty issued by the remanufacturer for a term of at least one year....
Section 4517.12(A) The registrar of motor vehicles shall deny the application of any person for a license as a motor vehicle dealer, motor vehicle leasing dealer, manufactured home broker, or motor vehicle auction owner and refuse to issue the license if the registrar finds that the applicant:
.... (4) Is engaged or will engage in the business of selling at retail any new motor vehicles without having written authority from the manufacturer or distributor thereof to sell new motor vehicles and to perform repairs under the terms of the manufacturer’s or distributor’s new motor vehicle warranty, except as provided in division (C) of this section and except that a person who assembles or installs special equipment or accessories for handicapped persons, as defined in section 4503.44 of the Revised Code, upon a motor vehicle chassis supplied by a manufacturer or distributor shall not be denied a license pursuant to division (A)(4) of this section....
Section 4517.12(C) Notwithstanding division (A)(4) of this section, the registrar shall not deny the application of any person and refuse to issue a license if the registrar finds that the applicant is engaged or will engage in the business of selling at retail any new motor vehicles and demonstrates all of the following in the form prescribed by the registrar:
(1) That the applicant has posted a bond, surety, or certificate of deposit with the registrar in an amount not less than one hundred thousand dollars for the protection and benefit of the applicant’s customers except that a new mo[435]*435tor vehicle dealer who is not exclusively-engaged in the business of selling re-manufactured vehicles shall not be required to post the bond, surety, or certificate of deposit otherwise required by division (C)(1) of this section;
(2) That, at the time of the sale of the vehicle, each customer of the applicant will be furnished with a binding agreement ensuring that the customer has the right to have the vehicle serviced or repaired by a new motor vehicle dealer who is licensed to sell and service vehicles of the same line-make as the chassis of the remanufactured vehicle purchased by the customer and whose service or repair facility is located within either twenty miles of the applicant’s location and place of business or twenty miles of the customer’s residence or place of business. If there is no such new motor vehicle dealer located within twenty miles of the applicant’s location and place of business or the customer’s residence or place of business, the binding agreement furnished to the customer may be with the new motor vehicle dealer who is franchised to sell and service vehicles of the same line-make as the chassis of the remanufactured vehicle purchased by the customer and whose service or repair facility is located nearest to the remanufacturer’s location and place of business or the customer’s residence or place of business.
(3) That, at the time of the sale of the vehicle, each customer of the applicant will be furnished with a warranty issued by the remanufacturer for a term of at least one year;
(4) That the applicant provides and maintains at the applicant’s location and place of business a permanent facility with all of the following:
(a) A showroom with space, under roof, for the display of at least one new motor vehicle;
(b) A service and parts facility for re-manufactured vehicles;
(c)Full-time service and parts personnel with the proper training and technical expertise to service the remanufac-tured vehicles sold by the applicant.

Ohio Rev.Code Ann. §§ 4517.02(E), 4517.12(A), and 4517.12(C) (Banks-Baldwin 1997).

The McNeilus Truck and Manufacturing Company and related entities (“McNeilus”) challenge the constitutionality of these provisions on their face and as applied to McNeilus. The company filed its initial complaint in the United States District Court for the Southern District of Ohio on November 4, 1996, alleging that Ohio’s requirements for licensing of vehicle reman-ufacturers are unconstitutional. McNei-lus, which is in the business of buying truck chassis from various manufacturers, installing concrete transit mixers or refuse packer bodies on them, and reselling the complete units directly to customers, claims that the statutory provisions effectively prohibit the company from engaging in the sale of these remanufactured trucks in Ohio, and subject it to possible criminal prosecution there.

This court affirmed the district court’s denial of McNeilus’s prior motion for a preliminary injunction in a February 28, 1998 order. See McNeilus Truck and Mfg., Inc. v. State of Ohio, 142 F.3d 435 (6th Cir.1998). McNeilus then amended its complaint to add the county prosecutors as defendants. On May 22, 1998, the district court granted partial summary judgment to defendants, finding that McNeilus could not challenge the statute under the Sherman Antitrust Act, and that there was not jurisdiction to address pendent state law claims.

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Bluebook (online)
226 F.3d 429, 2000 U.S. App. LEXIS 22238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneilus-truck-manufacturing-inc-v-ohio-ex-rel-montgomery-ca6-2000.