Chrysler granted summary judgment in preemption case
Chrysler v. Colorado Secretary of State
WTO obtained summary judgment on behalf of Chrysler Group LLC, the new Chrysler company, and Old Carco Motors LLC, the former Chrysler LLC, in federal district court for the Southern District of New York in a case involving the constitutionality of a Kentucky state dealer statute enacted after Old Carco's bankruptcy. The Kentucky statute, which purported to give former Chrysler, Jeep and Dodge dealers whose dealer agreements had been rejected in Old Chrysler's bankruptcy proceedings rights to block new dealers from opening in the rejected dealers' former markets, was struck down by the federal court on the grounds it was preempted by the Bankruptcy Court's orders. The court dismissed a similar claim against a Colorado state dealer statute after finding there was no case and controversy based on Colorado's admission that the Colorado statutes could not apply to Chrysler Group.
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