Northwest Hills Chrysler Jeep, LLC v. Dept. of Motor Vehicles

CourtConnecticut Appellate Court
DecidedOctober 27, 2020
DocketAC42899 Appendix
StatusPublished

This text of Northwest Hills Chrysler Jeep, LLC v. Dept. of Motor Vehicles (Northwest Hills Chrysler Jeep, LLC v. Dept. of Motor Vehicles) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwest Hills Chrysler Jeep, LLC v. Dept. of Motor Vehicles, (Colo. Ct. App. 2020).

Opinion

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The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** APPENDIX

NORTHWEST HILLS CHRYSLER JEEP, LLC, ET AL. v. DEPARTMENT OF MOTOR VEHICLES ET AL.* Superior Court, Judicial District of New Britain File No. CV-XX-XXXXXXX-S

Memorandum filed April 15, 2019

Proceedings

Memorandum of decision on plaintiffs’ appeal from decision by named defendant. Appeal dismissed. James J. Healy, Jason T. Allen, pro hac vice, and Richard N. Sox, pro hac vice, for the plaintiffs. Eileen Meskill, assistant attorney general, and George Jepsen, former attorney general, for the named defen- dant et al. Charles D. Ray, Shawn S. Smith, George W. Mykulak, pro hac vice, and Caitlin W. Monahan, pro hac vice, for the defendant FCA US, LLC. Jay B. Weintraub, John L. Bonee and Eric H. Rothauser, for the defendant Mitchell Dodge, Inc. Opinion

HUDDLESTON, J. In this administrative appeal, four automobile dealers assert that the defendants Depart- ment of Motor Vehicles and its commissioner, Michael R. Bzdyra (collectively, department), improperly denied their protest to the decision of the defendant FCA US, LLC (FCA), to establish a new Jeep dealership in Can- ton. They assert that the department (1) failed to comply with its statutory mandate to consider the existing cir- cumstances of two of the dealers, (2) made findings that are not supported by substantial evidence with respect to three statutory factors, and (3) made irrecon- cilable findings with respect to two of the factors. FCA and the department, in separate briefs, disagree. After considering all the arguments of the parties, and reviewing the entire administrative record, the court concludes that the department’s decision is neither incomplete nor inconsistent and is supported by sub- stantial evidence. Accordingly, for the reasons stated below, the appeal is dismissed. LEGAL FRAMEWORK In Connecticut, the relationships between manufac- turers and dealers of motor vehicles are governed by General Statutes §§ 42-133r through 42-133ee. These provisions recognize the ‘‘need for intra-brand competi- tion.’’ McLaughlin Ford, Inc. v. Ford Motor Co., 192 Conn. 558, 569 n.14, 473 A.2d 1185 (1984). Section 42- 133r (14) defines ‘‘ ‘[r]elevant market area’ ’’ as ‘‘the area within a radius of fourteen miles around an existing dealer or the area of responsibility defined in a fran- chise, whichever is greater.’’ The law ‘‘does not guaran- tee an exclusive right to operate a dealership within a fourteen mile radius, but rather requires the [C]ommis- sioner of [M]otor [V]ehicles to demonstrate good cause, as defined in the statute, for denying the addition or relocation of a dealer in the objecting dealer’s relevant market area.’’ (Internal quotation marks omitted.) McLaughlin Ford, Inc. v. Ford Motor Co., supra, 569 n.14. If a manufacturer wants to add a new dealer or to relocate an existing dealer within the relevant market area of an existing dealer, General Statutes § 42-133dd (a)1 requires the manufacturer to notify the Commis- sioner of Motor Vehicles and each existing dealer of its intention. If an existing dealer files a protest with the commissioner, the manufacturer cannot proceed until the commissioner has held a hearing and has deter- mined whether there is good cause for denying the manufacturer’s plan. The manufacturer bears the bur- den of proving that good cause exists for permitting the proposed establishment or relocation. Section 42- 133dd (c) sets out eleven nonexclusive ‘‘circumstances’’ or factors to be considered in determining whether good cause exists.2 DEPARTMENT’S FINDING OF FACTS AND CONCLUSIONS OF LAWS3 Mitchell Dodge, Inc., doing business as Mitchell Chrysler Dodge (Mitchell), operates a Chrysler, Dodge, Ram (CDR) dealership presently located at 416 Hop- meadow Street in Simsbury. There are thirty CDR deal- erships in Connecticut; all but four of them also sell the Jeep line. Mitchell is one of the four dealers currently without the Jeep line. The four plaintiffs operate Chrysler, Dodge, Jeep, Ram (CDJR) dealerships in Connecticut. Northwest Hills Chrysler Jeep, LLC (Northwest), operates a CDJR dealership in Torrington. Gengras Chrysler Dodge Jeep, LLC (Gengras), operates a CDJR dealership in East Hartford. Crowley Chrysler Plymouth, Inc., doing busi- ness as Crowley Chrysler Jeep Dodge Ram (Crowley), operates a CDJR dealership in Bristol. Papa’s Dodge, Inc. (Papa’s), operates a CDJR dealership in New Brit- ain. Each of their dealerships is within fourteen miles of Mitchell’s present location. In 2007, FCA’s predecessor, DaimlerChrysler Motors Company, LLC, looked to add the Jeep line to Mitchell’s franchise at its present location. It gave the statutorily required notice to the dealers in the relevant market area. Northwest, Gengras, Crowley, and Papa’s filed a protest pursuant to § 42-133dd (a), and the proposal to establish the Jeep line at Mitchell’s present location was withdrawn on March 5, 2007. On May 5, 2016, FCA gave notice to the department and to affected existing Jeep dealers that Mitchell intended to construct a facility at 71 Albany Turnpike in Canton, where it would relocate its existing CDR dealership, and requested to add the Jeep line. On May 23, 2016, Northwest, Gengras, Crowley, and Papa’s pro- tested the establishment of the Jeep line. They did not protest the relocation of Mitchell’s CDR dealership.4 In FCA’s dealer agreements, a ‘‘sales locality’’ is a geographic area of responsibility defined by specific census tracts. These are nonexclusive areas. Mitchell and the protesting dealers are located within three sales localities. Mitchell’s present location, Gengras, and Papa’s are located within the FCA’s Hartford sales local- ity. Mitchell’s proposed location is also within the Hart- ford sales locality. Crowley is within the FCA’s Bristol sales locality, and Northwest is within the FCA’s Torrin- gton sales locality. FCA further divides sales localities into ‘‘trade zones,’’ also defined by census tracts. The Hartford sales locality is divided into five trade zones: Enfield, East Hartford, New Britain, Rockville, and Simsbury. Of the five trade zones, two—Enfield and Simsbury—do not presently have Jeep dealerships, and are known in the trade as ‘‘open points.’’ Section 42-133dd (c) requires the commissioner or his designee to ‘‘take into consideration the existing circumstances,’’ which ‘‘includ[e], but [are] not limited to,’’ eleven circumstances. The final decision addressed each of the eleven specified circumstances.

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