Raines Imports, Inc. v. American Honda Motor Company, Inc.

674 S.E.2d 9, 223 W. Va. 303, 2009 W. Va. LEXIS 3
CourtWest Virginia Supreme Court
DecidedJanuary 30, 2009
Docket33803
StatusPublished
Cited by3 cases

This text of 674 S.E.2d 9 (Raines Imports, Inc. v. American Honda Motor Company, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raines Imports, Inc. v. American Honda Motor Company, Inc., 674 S.E.2d 9, 223 W. Va. 303, 2009 W. Va. LEXIS 3 (W. Va. 2009).

Opinion

DAVIS, Justice: 1

The appellant herein and plaintiff below, Raines Imports, Inc., doing business as Lester Raines Honda (hereinafter referred to as “Lester Raines Honda”), appeals from an order entered March 26, 2007, by the Circuit Court of Kanawha County. In that order, the circuit court granted summary judgment to the appellee herein and defendant below, American Honda Motor Company, Inc. (hereinafter referred to as “American Honda”), ruling that American Honda had not sent Lester Raines Honda statutory notice pursuant to W. Va.Code § 17A-6A-12(2) (2000) (Repl.Vol.2004) and that, accordingly, Lester Raines Honda did not have standing to bring the underlying declaratory judgment action against American Honda in accordance with W. Va.Code § 17A-6A-12(3) (2000) (Repl. Vol.2004). On appeal to this Court, Lester Raines Honda complains that the circuit court erred by (1) granting summary judgment to American Honda before Lester Raines Honda had had an opportunity to conduct discovery; (2) not finding that American Honda had violated W. Va.Code § 17A-6A-12(3); and (3) concluding that the distance comprising the “relevant market area” was fifteen air-miles rather than twenty air-miles. Upon a review of the parties’ arguments, the record designated for appellate review, and the pertinent authorities, we affirm the decision of the circuit court.

I.

FACTUAL AND PROCEDURAL HISTORY

The facts underlying the instant proceeding are largely undisputed by the parties. Lester Raines Honda is an automotive dealership located in South Charleston, West Virginia, that sells new motor vehicles in the Honda line-make. American Honda is the United States distributor of motor vehicles manufactured by Honda. Pursuant to W. Va.Code § 17A-6A-12(2) (2000) (Repl.Vol. 2004),

[bjefore a manufacturer or distributor enters into a dealer agreement establishing or relocating a new motor vehicle dealer within a relevant market area 2 where the same line-make is represented, the manufacturer or distributor shall give writ *306 ten notice to each new motor vehicle dealer of the same line-make in the relevant market area of its intention to establish an additional dealer or to relocate an existing dealer within that relevant market area.

(Footnote added). 3

On May 24, 2006, American Honda sent a letter to Lester Raines Honda, the pertinent text of which provided:

As a courtesy, American Honda hereby advises you that another Honda franchise will be located in the “South Charleston” area.
Currently, no exact location or specific timeline has been established, but it is anticipated that the new dealership could be operational by December 2007. 4

(Footnote added). The parties dispute, however, the intent of American Honda in sending this letter: Lester Raines Honda construes this letter as statutory notice in accordance with W. Va.Code § 17A-6A-12(2), 5 while American Honda claims that it sent this letter as a mere courtesy. 6

In response to this correspondence, Mr. Lester Raines, on behalf of Lester Raines Honda, sent American Honda a letter dated July 19, 2006, stating

[p]lease be advised that Lester Raines Honda objects pursuant to W. Va.Code § 17A-6A-12(2) of your location of a Honda franchise within the “South Charleston” area. W. Va.Code § 17A-6A-3(14) defines a relevant market area as the area located within a 15-air mile radius around an existing same line new motor vehicle dealership.
W. Va.Code § 17A-6A-12(3) provides that a declaratory judgment action can be brought against American Honda Motor Company at which time you would be compelled to show that good cause exists for the establishment of a location of a “South Charleston” Honda dealership. Please be advised that I fully intend to file such declaratory judgment action absent a representation by you that you will not establish another Honda franchise in the “South Charleston” area.

Lester Raines Honda then filed the aforementioned statutory declaratory judgment action against American Honda in the Circuit Court of Kanawha County on July 20, 2006.

Thereafter, on July 27, 2006, American Honda, who had not yet received notice of the then-pending statutory declaratory judgment action, 7 sent a second letter to Lester *307 Raines Honda. In this letter, American Honda attempted to explain its intent in sending its initial letter on May 24th:

I am writing in connection with your letter dated July 19, 2006, which references our letter to you dated May 24, 2006, in which American Honda advised you, as a courtesy, that another Honda franchise will be located in the “South Charleston area” at some point in the future but that, currently, no exact location or specific timeline has been established.
In your July 19, 2006 letter, you state that “Lester Raines objects pursuant to W. Va.Code § 17A-6A-12(2) of your location of a Honda franchise within the ‘South Charleston’ area.” American Honda does not understand this purported “objection.” Subsection (2) of § 17A-6A-12 does not provide for an “objection” by a dealer, but rather a notice by a franchisor. The only provision of § 17A-6A-12 that provides for any type of dealer objection is subsection (3), which permits a dealer to file a declaratory judgment action protesting a notice given by a franchisor under subsection (2).
American Honda has not given you notice pursuant to subsection (2), which provides that, “Before a manufacturer or distributor enters into a dealer agreement establishing ... a new motor vehicle dealer within a relevant market area where the same line-make is represented, the manufacturer or distributor shall give written notice to each new motor vehicle dealer of the same line-make in the relevant market area of its intention to establish an additional dealer ... within that relevant market area.” As your letter acknowledges, a “relevant market area” is defined by the statute as “the area located within a fifteen air-mile radius around an existing same line-make new motor vehicle dealership.” W. Va.Code § 17A-6A-3(14). As stated in our letter dated May 24, 2006, American Honda has not decided on any specific location for a new dealership in the South Charleston area. Accordingly, at this time it is impossible to determine whether any dealership established in the future might be within your relevant market area and thus whether your dealership would have any right to protest under § 17A-6A-12(3).
At this time, American Honda does not anticipate that the prospective new dealership in the South Charleston area will be within your relevant market area. If, however, American Honda decides to establish a new dealership within your relevant market area, you will receive notice pursuant to § 17A-6A-12(2).

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Bluebook (online)
674 S.E.2d 9, 223 W. Va. 303, 2009 W. Va. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raines-imports-inc-v-american-honda-motor-company-inc-wva-2009.