West Colorado Motors, LLC v. General Motors, LLC

2016 COA 103, 411 P.3d 1068
CourtColorado Court of Appeals
DecidedJune 30, 2016
Docket15CA0842
StatusPublished
Cited by2 cases

This text of 2016 COA 103 (West Colorado Motors, LLC v. General Motors, LLC) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West Colorado Motors, LLC v. General Motors, LLC, 2016 COA 103, 411 P.3d 1068 (Colo. Ct. App. 2016).

Opinion

COLORADO COURT OF APPEALS 2016COA103

Court of Appeals No. 15CA0842 City and County of Denver District Court No. 14CV34613 Honorable Catherine A. Lemon, Judge

West Colorado Motors, LLC, d/b/a Autonation Buick GMC Park Meadows,

Plaintiff-Appellant,

v.

General Motors, LLC; Alpine Buick GMC, LLC; and Barbara Brohl, as Executive Director of the Colorado Department of Revenue,

Defendants-Appellees.

ORDERS AFFIRMED

Division VI Opinion by CHIEF JUDGE LOEB Kapelke* and Nieto*, JJ., concur

Announced June 30, 2016

Lindquist & Vennum LLP, Patrick G. Compton, Denver, Colorado; Williams & Connolly LLP, Daniel Katz, Beth A. Levene, Washington D.C., for Plaintiff- Appellant

Wheeler Trigg O’Donnell LLP, Mark T. Clouatre, John P. Streelman, Webster C. Cash III, Denver, Colorado, for Defendant-Appellee General Motors LLC

Brownstein Hyatt Farber Schreck, LLP, Jonathan G. Pray, Hannah M. Caplan, Denver, Colorado, for Defendant-Appellee Alpine Buick GMC LLC

Cynthia H. Coffman, Attorney General, Y.E. Scott, Senior Assistant Attorney General, Austin P. Bernstein, Assistant Attorney General Fellow, Denver, Colorado, for Defendant-Appellee Barbara Brohl *Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2015. ¶1 In this case involving the relocation of an automobile

dealership, plaintiff, West Colorado Motors, LLC, d/b/a Autonation

Buick GMC Park Meadows (Park Meadows), appeals two district

court orders dismissing its claims against defendants General

Motors, LLC (GM), Alpine Buick GMC, LLC (Alpine), and Barbara

Brohl, as the Executive Director of the Colorado Department of

Revenue (Executive Director), for lack of subject matter jurisdiction

pursuant to C.R.C.P. 12(b)(1). Park Meadows also appeals the

district court’s order denying its motion for reconsideration of the

court’s order granting the Executive Director’s motion to dismiss.

We affirm.

I. Background and Procedural History

¶2 Park Meadows is a franchised Buick and GMC automobile

dealership located at 8101 East Parkway Drive, Lone Tree,

Colorado. Alpine is also a franchised Buick and GMC automobile

dealership and is located at 8120 W. Tufts Avenue, Denver,

Colorado. GM is a manufacturer and distributor of automobiles.

¶3 This case arose after GM provided statutory notice to Park

Meadows on April 22, 2014, in a written letter, that it intended to

approve the relocation of the Alpine dealership from its location in

1 Denver to a location in Littleton, Colorado. Pursuant to section

12-6-120.3(1), C.R.S. 2015, GM was required to provide at least

sixty days’ notice to certain of its franchised dealers if it intended to

relocate an existing motor vehicle dealer to a location that was

within another motor vehicle dealer’s “relevant market area.”

A. Communications Between Park Meadows and the Executive Director

¶4 On June 12, 2014, pursuant to section 12-6-120.3(4)(b)(I),

Park Meadows sent a letter to the Executive Director protesting

GM’s approval of Alpine’s relocation and requesting that she

conduct an investigation of the relocation, hold a hearing, and/or

issue a cease and desist order. See §§ 12-6-120.3(4)(b)(I)(A)-(C). In

this letter, Park Meadows argued that it had a right to bring an

action before the Executive Director in order for GM to “meet its

burden of proof” regarding several factors articulated in section

12-6-120.3(4)(a)(I)-(IV), and further argued that “[t]he relocation of

Alpine by GM will result in a loss of sales and market share, as well

as service opportunity, by [Park Meadows].” Park Meadows

attached the following three documents to its letter: (1) a map

showing that Alpine’s relocation site was within 7.3 miles of Park

2 Meadows’ location; (2) a map showing the population of the Denver

area according to the 2010 census tract; and (3) a map illustrating

that Alpine’s relocation site would allegedly infringe on Park

Meadows’ “Area of Geographic Sales and Service Advantage.”

¶5 In a letter dated August 20, 2014, the Executive Director

responded to Park Meadows, stating, in pertinent part, as follows:

As you know, this office has authority to investigate and resolve alleged violations of part 1 of article 6 of title 12, C.R.S., or the rules promulgated thereto. See, e.g., § 12-6- 105(1)(d), C.R.S. and § 12-6-120.3(4)(b)(I), C.R.S. Your letter does not include any allegation that a violation has occurred. See, e.g., § 12-6-118(1), C.R.S. (grounds for discipline of manufacturers and distributors) and § 12-6-120, C.R.S. (unlawful acts).

Based on the information you have provided, I find no basis to proceed with an investigation or to issue a cease and desist order.

¶6 On September 1, 2014, Park Meadows sent a second letter to

the Executive Director. In its second letter, Park Meadows “sought

redress for GM’s unreasonable approval of the relocation of Alpine,”

which would result “in loss of sales, market share and service

opportunities for [Park Meadows].” Park Meadows stated that GM’s

unreasonable approval of Alpine’s relocation violated section

3 12-6-120.3(1.5) (“A manufacturer shall reasonably approve or

disapprove of a motor vehicle dealer facility . . . relocation request

within sixty days after the request . . . .”), which, in turn, also

violated section 12-6-120(1)(h), C.R.S. 2015 (“It is unlawful and a

violation of this part 1 for any manufacturer, distributor, or

manufacturer representative . . . [t]o violate any duty imposed by, or

fail to comply with, any provision of section 12-6-120.3 . . . .”).

Based on these alleged violations, Park Meadows argued that it was

entitled to bring an action before the Executive Director pursuant to

section 12-6-120.3(4)(a) (“If a licensee . . . brings an action or

proceeding before the executive director or a court pursuant to this

part 1, the manufacturer shall have the burden of proof . . . .”), and

again asked the Executive Director to conduct an investigation,

hold a hearing, and issue a cease and desist order.

¶7 In a letter dated November 6, 2014, the Executive Director

sent a second response to Park Meadows, stating as follows:

In your letter, you renewed your request that this office conduct an investigation and issue a cease and desist order, or issue a notice of charges to General Motors, LLC and hold a hearing, in connection with the proposed relocation of Alpine Buick. . . .

4 As I stated in my letter of August 20, 2014, this office has authority to investigate and resolve alleged violations of part 1 of article 6 of title 12, C.R.S., or the rules promulgated thereto. See, e.g., § 12-6-105(1)(d), C.R.S., and § 12-6-120.3(4)(b)(1), C.R.S. Based upon your letters of June 12 and September 1, 2014, and the attachments, I see no indication that a violation of part 1 or the rules promulgated thereto has occurred. See, e.g., § 12-6-118(1), C.R.S. (grounds for discipline of manufacturers and distributors) and § 12-6-120, C.R.S. (unlawful acts).

Therefore, based on the information you have provided, I again find no basis to proceed with an investigation, to issue a cease and desist order, or to take other action.

B. District Court Proceedings

¶8 On December 9, 2014, Park Meadows filed a complaint in

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Cite This Page — Counsel Stack

Bluebook (online)
2016 COA 103, 411 P.3d 1068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-colorado-motors-llc-v-general-motors-llc-coloctapp-2016.