Mike Pallone Chevrolet, L.L.C. v. General Motors Corp.

78 Va. Cir. 277, 2009 Va. Cir. LEXIS 29
CourtFairfax County Circuit Court
DecidedApril 27, 2009
DocketCase No. CL-2008-15120
StatusPublished

This text of 78 Va. Cir. 277 (Mike Pallone Chevrolet, L.L.C. v. General Motors Corp.) is published on Counsel Stack Legal Research, covering Fairfax County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mike Pallone Chevrolet, L.L.C. v. General Motors Corp., 78 Va. Cir. 277, 2009 Va. Cir. LEXIS 29 (Va. Super. Ct. 2009).

Opinion

By Judge Bruce D. White

The matter before the Court is Respondent General Motors Corporation’s (“GM”) Demurrer to the Plaintiff Mike Pallone Chevrolet, L.L.C.’s (“Pallone”) Complaint, which seeks attorney’s fees and costs attendant to a matter dismissed by the Commissioner of the Virginia Department of Motor Vehicles, D. B. Smit (“Commissioner”). On April 17, 2009, the Court heard oral argument on Respondent’s Demurrer and took this matter under advisement.

The Court has fully considered the pleadings, briefs, and oral arguments of counsel. For the reasons set forth below, Respondent’s Demurrer is sustained.

I. Background and Facts Pleaded in the Complaint

As an initial matter in ruling on the Demurrer to the Complaint, the Court will not consider the materials attached to the Demurrer, namely the Hearing Officer’s recommendation and the Commissioner’s decision, because [278]*278they were not properly made a part of the Complaint prior to the hearing through a motion craving oyer. Thus, the Court will only consider the Complaint in making its decision.

A demurrer tests the legal sufficiency of the claims stated in the complaint. Thompson v. Skate Am., Inc., 261 Va. 121, 128, 540 S.E.2d 123 (2001) (citing Dray v. New Mkt. Poultry Prods., Inc., 258 Va. 187, 189, 518 S.E.2d 312(1999)). A demurrer admits the truth of the material facts properly pleaded in the complaint as well as those facts implied by and justly inferred from those properly pleaded facts. Id. (citing Cox Cable Hampton Rds., Inc. v. City of Norfolk, 242 Va. 394, 397, 410 S.E.2d 652 (1991)). Thus, in deciding whether the complaint states facts legally sufficient to support the cause of action, this Court will only consider the facts properly pleaded, implied, and justly inferred from the complaint. See id.

On July 20,2006, GM gave Pallone notice by letter that GM approved the move of a Chevrolet dealership into a market area in which Pallone was already located. (Compl. ¶ 1.) A similar letter was also sent to Rosenthal Chevrolet (“Rosenthal”). (Compl. ¶ 1.) Pallone and Rosenthal challenged GM5 s decision alleging that GM was granting an additional dealership in their relevant market area in violation of Virginia Code § 46.2-1569(4) and § 46.2-1573. (Compl. ¶¶ 2-3.) Pallone and Rosenthal requested and received permission to hold evidentiary hearings in front of the Commissioner. (Compl. ¶¶ 2-3.) Hearing Officer Anthony Vance (“Hearing Officer”) presided over the Formal Evidentiary Hearings and submitted a Recommended Hearing Decision to the Commissioner. (Compl. ¶¶ 4, 7.)

After the Formal Evidentiary Hearings but before the final decision by the Commissioner, GM sought to dismiss the action, because it elected not to move the dealership into Pallone’s and Rosenthal’s market area. (Compl. ¶ 6.) Due to GM’s decision not to move the dealership, the Hearing Officer recommended that the Commissioner grant the dismissal because the issues explored in the Formal Evidentiary Hearings were moot. (Compl. ¶ 7.) The Commissioner followed the Hearing Officer’s recommendation. (Compl. ¶ 8.) In light of the dismissal and the $628,817.97 Pallone spent on attorney’s fees and costs in protecting its business interests, Pallone filed a Complaint with this Court seeking an award of attorney’s fees pursuant to Virginia Code § 46.2-1573.01. {See Compl. ¶¶ 9-10.)

Procedurally, it is important to note that this is not an appeal from the Commissioner’s decision granting the dismissal, nor is it an appeal from a denial of attorney’s fees and costs. Instead, this is a separate action for fees and costs related to the proceedings before the Commissioner.

[279]*279II. Summary of the Arguments

A. GM’s Arguments

In support of its Demurrer, GM argues that: (1) Pallone did not appeal the Commissioner’s dismissal, which means this Court cannot now determine that there was a violation, and a violation is required for the award of attorney’s fees and costs (GM’s Mem. Supp. Dem. 4); and (2) Pallone is barred from recovering attorney’s fees and costs because the Hearing Officer’s initial recommendation on the merits favored GM (Dem. 5, 7).

B. Pallone’s Arguments

Pallone, argues that: (1) even though the Commissioner’s dismissal was not a final decision on the merits, Code § 46.2-1573.01 still supports an award (Pallone’s Br. Opp’n 5); (2) the Court may hear this case, because its equity powers and the statute’s broad language give the court discretion to do so (Opp’n 6); (3) whether GM violated the act is a determination that should be made by a jury (Opp’n 7).

III. Discussion
A. Attorney’s Fees and Costs Under the Act

The Motor Vehicle Dealer Franchise Act, Va. Code § 46.2-1500 etseq. (“Act”), allows the Commissioner to hear cases arising under the Act and make binding decisions in those cases. Va. Code § 46.2-1573(A). Those decisions are subject to judicial review and appeal based on the procedures set forth in' the Virginia Administrative Process Act (VAPA), Va. Code § 2.2-4000 et seq. Id.; Volkswagen of Am., Inc. v. Smit (Volkswagen II), 52 Va. App. 751, 771, 667 S.E.2d 817 (2008). Additionally, a party who violates the Act may be ordered to pay the other party’s reasonable attorney’s fees and costs. Va. Code § 46.2-1573.01. The statutory provision allowing attorney’s fees states, in pertinent part:

Any party to a proceeding under § 46.2-1573 who is found to have violated any provision ofthis article may be ordered by the circuit court before which an application therefor is pending to pay the reasonable attorney’s fees and costs incurred by the complaining party, including those attorney’s fees and costs [280]*280incurred as a result of any appeal. Following issuance of the Commissioner’s case decision finding that such violation has occurred, the complaining party may make application to an appropriate circuit court for entry of an order awarding it reasonable attorney’s fees and costs.

Va. Code § 46.2-1573.01 (emphasis added). While other portions of the act have been regularly dealt with, the attorney’s fees and costs section has had little interpretation. See Volkswagen II, 52 Va. App. at 799, n. 14 (stating that an award of attorney’s fees and costs is a matter strictly for the circuit court (citing Va. Code § 46.2-1573.01)).

Thus, in interpreting the statute, the basic rules of statutory construction provide the relevant framework. See Volkswagen of Am., Inc. v. Smit (Volkswagen I), 266 Va. 444, 452, 587 S.E.2d 526 (2003). This requires examining the words used in the statute to determine the General Assembly’s intent, and “[w]hen the language of a statute is plain and unambiguous, courts are bound by the plain meaning of that language . . .

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Related

Volkswagen of America, Inc. v. Smit
587 S.E.2d 526 (Supreme Court of Virginia, 2003)
Thompson Ex Rel. Thompson v. Skate America, Inc.
540 S.E.2d 123 (Supreme Court of Virginia, 2001)
Dray v. New Market Poultry Products, Inc.
518 S.E.2d 312 (Supreme Court of Virginia, 1999)
Volkswagen of America, Inc. v. Smit
667 S.E.2d 817 (Court of Appeals of Virginia, 2008)
Cox Cable Hampton Roads, Inc. v. City of Norfolk
410 S.E.2d 652 (Supreme Court of Virginia, 1991)

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Bluebook (online)
78 Va. Cir. 277, 2009 Va. Cir. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mike-pallone-chevrolet-llc-v-general-motors-corp-vaccfairfax-2009.