Wayzata Nissan, LLC v. Nissan North America, Inc., Stephen J. McDaniels

875 N.W.2d 279, 2016 Minn. LEXIS 54, 2016 WL 626069
CourtSupreme Court of Minnesota
DecidedFebruary 17, 2016
DocketA14-1652
StatusPublished
Cited by17 cases

This text of 875 N.W.2d 279 (Wayzata Nissan, LLC v. Nissan North America, Inc., Stephen J. McDaniels) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wayzata Nissan, LLC v. Nissan North America, Inc., Stephen J. McDaniels, 875 N.W.2d 279, 2016 Minn. LEXIS 54, 2016 WL 626069 (Mich. 2016).

Opinion

OPINION

WRIGHT, Justice.

In May 2014, motor vehicle manufacturer Nissan North America, Inc. (Nissan) and prospective,-.Nissan dealer- Stephen *282 McDaniels 1 sought to relocate a Nissan dealership from Bloomington to a location 7.6 miles from a dealership operated by-appellant Wayzata Nissan, LLC (Wayza-ta). Wayzata challenged the relocation under the Minnesota Motor Vehicle Sale and Distribution Act (MVSDA), Minn.Stat. §§ 80E.01-.17 (2014), and later moved for a temporary restraining order and a good-cause hearing pursuant to Minn.Stat. § 80E.14, subd. 1. The district court denied Wayzata’s motion, concluding that the planned relocation fell within the exception in section 80E.14, subdivision 1, for the “relocation of an existing dealer.” The court of appeals affirmed. We conclude that (1) this appeal is not moot even though the relocation at issue already has occurred; (2) the notice and good-cause requirements of Minn.Stat. § 80E.14, subd. 1, apply bn the date that a manufacturer develops an intention to relocate a dealership; and (3) the existing-dealer exception does .not apply when the relocation of a dealership is accompanied by a change in the person or entity operating the dealership. Accordingly, we affirm the court of appeals’ decision' on mootness, reverse on the merits, and,remand to the district court for further ‘proceedings consistent with this opinion.

I.

Feldmann Imports Inc. (Feldmann) formerly ' operated a Nissan motor vehicle dealership in Bloomington. In- March 2014, Feldmann executed an asset .purchase agreement (APA) with a thud party for the sale of the Bloomington dealership. Because Feldmann sought to retain the Bloomington property for other purposes, the APA required the buyer to relocate the dealership. The APA specified a potential new dealership location in Eden Prairie that is 7.6 miles from Wayzata’s dealership.

By the terms of Feldmann’s franchise agreement, Nissan maintained a right of first refusal on the sale of the Feldmann dealership. Nissan exercised its right of first refusal' on the APA and later assigned its right to McDaniels. McDaniels then purchased the real property in Eden Prairie that was referenced in the APA. Although McDaniels had operated motor vehicle dealerships pursuant to franchises with other manufacturers, McDaniels had never held a franchise agreement with Nissan.

After hearing rumors of the proposed relocation, Wayzata sent a letter to Nissan inquiring about its intentions. Wayzata feared that the close proximity of the relocated dealership would impinge on Wayza-ta’s primary geographic area of business. In a letter dated May 8, 2014, Nissan responded that it intended to allow Feld-mann or Feldmann’s successor in interest to relocate the Bloomington dealership to a location within 10 miles of the Wayzata dealership.

On July 9, 2014, McDaniels entered into a sublease with Feldmann for the Bloom-ington property, contingent on McDan-iels’s closing on the purchase of the Bloom-ington dealership. Nissan approved McDaniels as a Nissan dealer, as well as the relocation of the Bloomington dealership, on July 24. On July 28, McDaniels closed on the purchase of the Bloomington dealership and immediately commenced operation of the dealership in Blooming-ton, pending its relocation to Eden Prairie.

*283 Wayzata filed an action against' Nissan and McDaniels in Hennepin County District Court and subsequently moved for a temporary restraining order pursuant to the MVSDA. Specifically, Minn.Stat. § 80E.14, subd. 1, requires a motor vehicle manufacturer to notify an existing dealer of the intention to establish or relocate a dealership to a location within .10 miles of the existing dealer’s dealership. The existing dealer may.then obtain a temporary injunction until a court determines that the establishment or relocation of the dealership is supported by good cause. Minn. Stat. § 80E.14, subd. 1. But the “relocation of an existing dealer” is not subject to the notice and good-cause requirements of the statute. Id. Nissan and McDaniels contended that Nissan planned to relocate an “existing dealer” and, therefore, Wayzata had no right to challenge the relocation.

The district court denied Wayzata’s motion. As an initial matter, the district court held that the notice and good-cause requirements of the , statute applied on May 8, 2014 — the date of Nissan’s letter to Wayzata — at the latest., Further, the district court found that McDaniels was not an “existing dealer” on that date. -Yet, the district court held that Nissan and McDan-iels were exempt from the statute’s notice and good-cause requirements. Concluding that the MVSDA uses the words “dealer” and “dealership” interchangeably, the district court held that the existing-dealer exception applied because Nissan intended to relocate an existing dealership from Bloomington to Eden Prairie.

Wayzata filed a notice of appeal on September 26, 2014. McDaniels completed the relocation of the Bloomington dealership on November 1, 2014 — while the appeal was pending — and commenced operations in Eden Prairie. Before the court of appeals, Nissan and McDaniels argued that the relocation of the dealership rendered the appeal' moot. The court of appeals held that the appeal was not moot because the district court could enjoin McDaniels from continuing operations at the Eden Prairie location. Wayzata Nissan, LLC v. Nissan N. Am., Inc,, 865 N,W.2d 75, 79 (Minn.App.2015). On the merits, the court of appeals affirmed the district court’s decision, but .on different grounds. The court of appeals held .that McDaniels was an “existing dealer” on the date that the Bloomington dealership was physically relocated to Eden Prairie and, therefore, the existing-dealer exception applied. Id. at 82. We granted Wayzata’s petition for review.

[[Image here]]

As a threshold matter, we must address the issue of mootness. Nissan and McDaniels argue that this appeal is moot because Wayzata sought to enjoin the relocation of the Bloomington dealership, and the dealership now has been relocated. Wayzata contends that the district court could enjoin the operation of the Eden Prairie • dealership. Moreover, Wayzata cites Miim.Stat. § 80E.17, which provides that “any person whose business or property is injured by a violation” of the MVSDA “may bring a civil action to enjoin further violations and to recover the actual damages sustained.”

We consider only live controversies, and an appeal will be dismissed as moot when intervening events render a decision on the merits unnecessary or an award of effective relief impossible. In re Minnegasco, 565 N.W.2d 706, 710 (Minn.1997). But an appeal is not moot when a party could be afforded effective relief. Hous. & Redevelopment Auth. ex rel. City of Richfield v, Walser Auto Sales, Inc., 641 N.W.2d 885, 888 (Minn.2002). We review the issue of mootness de novo. Dean v. *284 City of Winona,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Restorff
932 N.W.2d 12 (Supreme Court of Minnesota, 2019)
Moore v. City of New Brighton
932 N.W.2d 317 (Court of Appeals of Minnesota, 2019)
Cent. Hous. Assocs., LP v. Olson
929 N.W.2d 398 (Supreme Court of Minnesota, 2019)
Verhein v. Piper
917 N.W.2d 96 (Court of Appeals of Minnesota, 2018)
Russo v. Walgreen Co.
N.D. Illinois, 2018
Laymon v. Minnesota Premier Properties, LLC
903 N.W.2d 6 (Court of Appeals of Minnesota, 2017)
Phone Recovery Services, LLC v. Qwest Corp.
901 N.W.2d 185 (Court of Appeals of Minnesota, 2017)
Nelson v. State
896 N.W.2d 879 (Court of Appeals of Minnesota, 2017)
Vermillion State Bank v. State ex rel. Department of Transportation
895 N.W.2d 269 (Court of Appeals of Minnesota, 2017)
James Linn v. BCBSM, Inc.
890 N.W.2d 160 (Court of Appeals of Minnesota, 2017)
David B. Markle v. Metro Metals Corporation
Court of Appeals of Minnesota, 2016
NJK Holding Corporation v. The Araz Group, Inc.
878 N.W.2d 515 (Court of Appeals of Minnesota, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
875 N.W.2d 279, 2016 Minn. LEXIS 54, 2016 WL 626069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wayzata-nissan-llc-v-nissan-north-america-inc-stephen-j-mcdaniels-minn-2016.