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Alabama Motor Vehicle Franchise Act Does Not Preclude Retrospective Release of Claims

The Alabama Motor Vehicle Franchise Act provides that “notwithstanding the terms, provisions, or conditions of any dealer agreement or franchise or the terms or any provisions of any waiver . . . any person who is injured . . . by a violation of this chapter . . . may bring a civil action . . . “ (emphasis added). In response to a certified question, the Alabama Supreme Court has determined that the Act’s language did not render unenforceable the settlement and release of existing claims. With that direction, the Court in Edwards v. Kia Motors America, Inc., 2009 WL 24198 (11th Cir. Jan. 6, 2009), found that all of the plaintiff’s claims were barred by the release into which he previously entered with the defendant.

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The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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