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

865 N.W.2d 75, 2015 Minn. App. LEXIS 40, 2015 WL 3649204
CourtCourt of Appeals of Minnesota
DecidedJune 15, 2015
DocketA14-1652
StatusPublished

This text of 865 N.W.2d 75 (Wayzata Nissan, LLC v. Nissan North America, Inc., Stephen J. McDaniels) is published on Counsel Stack Legal Research, covering Court of Appeals 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, 865 N.W.2d 75, 2015 Minn. App. LEXIS 40, 2015 WL 3649204 (Mich. Ct. App. 2015).

Opinion

OPINION

RODENBERG, Judge.

Appellant Wayzata Nissan, LLC challenges the district court’s denial of a temporary restraining order against respondents Stephen McDaniels, EP Motors, Inc., McEP Investments, LLC, and Nissan North America, Inc., seeking to enjoin relocation of a Nissan dealership to a new location within ten miles of appellant’s existing dealership. Because the relocating dealer meets the requirements of the safe-harbor provision of Minn.Stat. § 80E.14, subd. 1, we affirm.

FACTS

This appeal arises from the sale of a Bloomington Nissan dealership to McDan-iels, 3 facilitated by respondent Nissan North America, Inc. (Nissan NA), a Nissan manufacturer, with the intention of relocating the dealership to Eden Prairie to a new location within ten miles of appellant’s existing Nissan dealership.

Sale of Feldmann Nissan

Feldmann Imports, Inc. (Feldmann) operated a Nissan dealership in Bloomington. On March 21, 2014, Feldmann executed an asset purchase agreement (APA) with Lu-pient Automotive Group, Inc. to sell the dealership. Feldmann conditioned the sale on the purchaser relocating the dealership to Eden Prairie, as Feldmann planned to use the existing Bloomington facility for other ventures. On April 15, 2014, Nissan NA (a manufacturer of new motor vehicles, with multiple Minnesota franchises) exercised its right of first refusal, stepping into the shoes of the purchaser under the APA. On May 2, 2014, Nissan NA assigned its rights to McDan-iels. On July 28, 2014, McDaniels entered into an APA with Feldmann to purchase the dealership and relocate it to Eden Prairie.

Appellant, which operates a Nissan dealership in Wayzata, learned of the potential sale of Feldmann’s dealership and, on May 1, 2014, sent a letter to Nissan NA alleging *78 that Nissan NA was conspiring to open a dealership 7.6 miles from appellant’s dealership and notifying Nissan NA that appellant might seek injunctive relief. Nissan NA replied, stating that it was not required to provide notice to appellant because it planned to “permit Feldmann [Nissan] and/or its successor in interest to relocate its Nissan dealership” pursuant to a safe-harbor provision in the Minnesota Motor Vehicle Sale and Distribution Act (MVSDA). 4

In July 2014, appellant moved the district. court for a temporary restraining order (TRO) to prevent McDaniels from operating a Nissan dealership in Eden Prairie, and requested an expedited good-cause hearing under the MVSDA. The district court denied the motion for a TRO, concluding that McDaniels was not an “existing dealer” under the statute at that time, but that the existing dealer safe-harbor provision of Minn.Stat. § 80E.14, subd.= 1, applies when a manufacturer intends to relocate an existing-dealership, even if that relocation coincides with a transfer of the dealership to a new owner. This interlocutory appeal from the denial of appellant’s motion followed.

On the same day the TRO was denied, McDaniels began operating the Nissan dealership purchased from Feldmann at-the Bloomington location, subleasing the building from Feldmann. On November 1, 2014 McDaniels began operating the dealership at the Eden Prairie location, within ten miles of appellant’s dealership.

ISSUES

I. Is this appeal moot?

II. Did the district court err in denying appellant’s motion for temporary injunctive relief?

ANALYSIS

I.

“It is well settled that if, pending an appeal, an event occurs which renders it impossible to grant any relief to appellant, or which makes a decision unnecessary, the appeal will be dismissed as presenting a moot question.” In re Twp. of Glendale, Scott Cnty., 288 Minn. 340, 180 N.W.2d 925, 927 (1970). But an appeal is not moot “if [a party] could be afforded effectual relief.” Hous. & Redev. Auth. ex rel. City of Richfield v. Walser Auto Sales, Inc., 641 N.W.2d 885, 891 (Minn.2002).

Respondents argue that, because the TRO sought by appellant was limited to prohibiting the relocation, and because McDaniels relocated the Nissan dealership to the Eden Prairie location in November 2014, effective relief is no longer possible and this appeal is therefore moot.

Appellant responds that effective relief remains available, noting that, at a preliminary hearing before the district court, the parties discussed McDaniels’ awareness that, if the district court’s denial of a TRO were reversed on appeal, McDaniels might be enjoined from operating the relocated dealership in Eden Prairie. 5

*79 Effective relief remains available despite McDaniels having relocated. If we were to reverse-and remand, the district court could enjoin McDaniels from operating the Eden Prairie dealership pending a good-cause hearing. That McDaniels is now operating a dealership at the new location does not prevent continued operations there from being enjoined, if appropriate. Because effective relief could still be granted, this appeal is not moot.

McDaniels separately argues that this appeal has been mooted during its pen-dency by the district court having dismissed the claims against it. Appellant responds that there remain live claims in the district court because appellant’s claims against' Nissan have not been dismissed and final judgment has not been entered.

Because no judgment has been entered, the dismissal of the claims against McDan-iels is not final and could be revised “at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of - the parties.” Minn. R. Civ. P. 54.02. Moreover, even if the district court were to enter partial judgment under Minn. R. Civ. P. 54.02, which it has not, appellant could elect to appeal and the appeal from the denial of appellant’s motion for a TRO would not be mooted until appellant had exhausted its appellate remedies. Because appellant retains a viable interest in the claims asserted against McDaniels, this appeal is not moot because of the district court’s dismissal of the claims against McDaniels.

We also observe that the issues raised in this appeal are relevant to the merits of the case. This appeal from the denial of appellant’s motion for a TRO concerns the limitations on establishing and relocating new motor vehicle dealerships under Minn. Stat. § 80E.14 (2014), and the district court’s denial of the motion for a TRO, as well as its dismissal of appellant’s claims against McDaniels, was based on the same reasoning under the same statutory provision. The issue of whether Minn.Stat. § 80E.14 applies to this particular relocation goes to the heart of this case. Expedient resolution of this issue will serve the interests of judicial efficiency.

This appeal is not moot and we therefore deny the motion of the McDaniels respondents to dismiss the appeal on that basis.

II.

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Cite This Page — Counsel Stack

Bluebook (online)
865 N.W.2d 75, 2015 Minn. App. LEXIS 40, 2015 WL 3649204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wayzata-nissan-llc-v-nissan-north-america-inc-stephen-j-mcdaniels-minnctapp-2015.