§ 44-20-438 — Termination appeal

(1) A powersports vehicle dealer who has
reason to believe that a manufacturer, distributor, or manufacturer representative
has violated section 44-20-423 (1)(d) or (1)(v) may appeal to the board by filing a
complaint with:

(a) The executive director; or

(b) A district court if neither the executive director nor the administrative law
judge, appointed in accordance with this section, holds a hearing concerning the
complaint within sixty days after the complaint was filed.

(2) Upon filing a verified complaint alleging with specific facts that a
violation has occurred under this section, the termination, elimination, modification,
or nonrenewal of the franchise agreement is automatically stayed, without the
motor vehicle dealer posting a bond, until a final determination is made on each
issue raised in the complaint; except that the executive director, administrative law
judge, or court may cancel the stay upon finding that the cancellation, termination,
or nonrenewal of the franchise agreement was for any of the reasons specified in
section 44-20-423 (1)(d)(III). The automatic stay maintains all rights under the
franchise agreement until the final determination of the issues raised in the verified
complaint. The manufacturer, distributor, or manufacturer representative shall not
name a replacement motor vehicle dealer for the market or location until a final
order is entered.

(3) If a verified complaint is filed with the executive director, the executive
director shall refer the complaint to an administrative law judge with the office of
administrative courts for final agency action.

(4) In resolving a termination complaint, the manufacturer, distributor, or
manufacturer representative has the burden of proving any claim made that the
factors listed in section 44-20-423 (1)(d)(II) apply to the termination, cancellation, or
nonrenewal.

(5) The prevailing party in a claim that a termination, cancellation, or
nonrenewal violates section 44-20-423 (1)(d) or (1)(v) is entitled to recover attorney
fees and costs, including expert witness fees, incurred in the termination protest.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 134, � 2, effective October 1.