Automotive News: Tesla wins first round in Massachusetts dealers lawsuit

[Robert.Boston]

Good point, Norbert. Or, flipped the other way, if there's no one with standing to bring a complaint against Tesla Motors for direct sales, how can Tesla ever be found in violation of the law?

The owner of the local Honda dealership was a pretty straight-up guy (better than his lawyer). In summary, he admitted that his real concern is not Tesla coming in, but that Tesla's direct model will allow Honda to enter with a company-owned store. I think he's wrong about that: he would have standing to seek injunctive relief in that case.

One scary admission by the MSADA lawyer: he stated that Tesla's counsel was misconstruing the law that limits manufacturers ability to sell directly to consumers and that he should know because "he helped write the law and its most recent amendments." I foolishly thought that my legislators and their staff wrote the laws of the commonwealth....

 

[jerry33]

One scary admission by the MSADA lawyer: he stated that Tesla's counsel was misconstruing the law that limits manufacturers ability to sell directly to consumers and that he should know because "he helped write the law and its most recent amendments." I foolishly thought that my legislators and their staff wrote the laws of the commonwealth....

I believe the legislators just get paid to present them.

 

[Norbert]

Good point, Norbert. Or, flipped the other way, if there's no one with standing to bring a complaint against Tesla Motors for direct sales, how can Tesla ever be found in violation of the law?

Probably in some abstract legal sense you are saying the same thing, however in a more common sense way one could read your sentence as saying: "Nobody is in a position to complain about a possible violation of the law". Whereas my point is that there is nothing to be violated in this case. Without a franchise agreement, rules for franchise agreements do not apply. So those rules are not being violated in the first place. (Regardless of whether anyone would be in a position to complain about any violation).

 

[KD5MDK]

I foolishly thought that my legislators and their staff wrote the laws of the commonwealth....

I have some bad news for you.

 

[Grendal]

Massachusetts dealers appeal ruling in Tesla store case

MSADA appeals the ruling.

I love the quote from the VP of MSADA.

Robert O'Koniewski, executive vice president of the dealers association, told Automotive News in an email. "Tesla is spending considerable sums of money across the country in an effort to exploit what they see to be gaps in states' franchise laws," O'Koniewski wrote. "The law is the law. Follow it."

The Dealers Association is spending considerable sums of money across the country in an effort to prevent Tesla from doing business. The judge said that they lacked a standing to sue. The judge said that is the law. The MSADA is choosing not to follow the law but fight it instead.

 

[PopSmith]

The Dealers Association is spending considerable sums of money across the country in an effort to prevent Tesla from doing business. The judge said that they lacked a standing to sue. The judge said that is the law. The MSADA is choosing not to follow the law but fight it instead.

The way I see it, the MSADA is now trying to do exactly what they're accusing Tesla of doing. That is, they (the MSADA) are now looking for a loophole to exploit to get back in the courtroom.

 

[DrTaras]

My friend and a junior Republican State Senator from MN, Karin Housley may be sympathetic to Tesla's cause there. Maybe you should (if you are from Minnesota) contact her to put in your 2 cents. You're welcome to say you heard it from me. Her husband is Hockey Hall of Fame member Phil Housley! https://www.facebook.com/HousleyForSenate/info

 

[aronth5]

Tesla Continues Effort This Week to Sell in Natick Mall "Gallery", Mass.

"Tesla Motors will go before the Natick Planning Board on Wednesday night to ask for an exception to zoning regulations now preventing the manufacturer of upscale electric cars from selling to customers at its Natick Mall “gallery.”

http://www.boston.com/yourtown/2013/04/20/tesla-wants-sell-its-cars-the-natick-mall/iVCpoypXeMxMwXQp6jTb9K/story.html

 

[neroden]

I'm curious: has anyone got a link to the text of the Massachusetts law?

I read the New York law (since that's where I am) -- in New York, the law which is called the Franchised Motor Vehicle Dealers Act quite explicitly only applies to motor vehicle dealership franchises and the law is very clear -- it does not apply to Tesla or anyone else who doesn't use franchises. (The NY law mentions the word "franchise" over and over and over again. There is a separate set of legal provisions which apply to all motor vehicle dealerships, and which includes the lemon law, so it's clearly a deliberate distinction.)

I'm curious as to whether the Massachussetts law is equally clear.

 

[Robert.Boston]

@neroden: It's HERE, quoted in full below:

SECTION 1: Clause 10 of Subsection (c) of Section 4 of Chapter 93B of the General Laws, as appearing in the 2010 Official Edition, by inserting, in line 27, after the word “dealership” the following:-

(iv) owning or operating a dealership when, at the time of establishment of the manufacturer or distributor owned or operated dealership, no franchise agreement existed between the manufacturer or distributor and any dealer in the Commonwealth not owned or operated by the manufacturer or distributor.

SECTION 2: Section 15 of Chapter 93B of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking subsection (a) and inserting the following:-

(a) Any manufacturer, distributor or motor vehicle dealer who suffers any loss of money or property, real or personal, as a result of the use or employment by a manufacturer, distributor or motor vehicle dealer of the same line make of an unfair method of competition or an unfair or deceptive act or practice as defined by this chapter, any act prohibited or declared unlawful by this chapter, or any rule or regulation adopted under this chapter, may bring an action in the superior court, or if applicable in the federal district court for the district of Massachusetts, for damages and equitable relief, including injunctive relief, as described in the following sentence: The party filing suit must demonstrate that the manufacturer, distributor or motor vehicle dealer that is conducting or has conducted the unfair method of competition or unfair or deceptive act or practices manufactures, distributes or acts as a dealer for vehicles of the same line make as the party filing suit and that the harm alleged originated from or was the direct result of action taken with respect to such line make.

The important part in Section 2 is "same line and make", which means that an Audi dealer can't sue Tesla.

 

[Zaxxon]

Not sure whether this is the appropriate thread, but there are a few threads regarding the MA dealer laws and this one seemed as good as the others...

Lawmakers test drive Tesla, car at center of Natick controversy