Awaiting 6th Circ. Clarity On Chrysler Dealers' Appeal
May 7, 2012, 11:54 AM EDT
Law360, New York (May 7, 2012, 11:54 AM EDT) -- In the aftermath of the 2009 bankruptcies of Chrysler LLC (“Old Chrysler”) and General Motors Corporation (“Old GM”), Congress enacted Section 747 of the Consolidated Appropriations Act of 2010, Pub. L. No. 111-117. Section 747 grants certain arbitration rights to dealerships that had their sales and services agreements rejected or terminated in connection with the Chrysler and GM bankruptcies.
Several dealerships who had their contracts rejected by Old Chrysler and subsequently prevailed in Section 747 arbitrations with Chrysler Group LLC (“New Chrysler”) initiated litigation in the...