Fed. Circ. Won't Nix GM, Chrysler Dealers' Takings Suits
By Kurt Orzeck
Law360, Los Angeles (April 07, 2014, 6:53 PM ET) -- The Federal Circuit on Monday refused to dismiss suits accusing the government of ordering General Motors Corp. and Chrysler LLC to renege on franchise contracts with car dealerships as part of bailout and restructuring deals, ruling the plaintiffs might be able to show economic loss.
Agreeing with the U.S. Court of Federal Claims' decision not to dismiss the two takings suits, the Federal Circuit said they don't yet properly allege that the economic value of plaintiffs' franchises was reduced or eliminated as a result of the...