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The Franchise Memorandum

Auto Manufacturer's Request for Specific Performance Rejected
Posted in Contracts

In Mercedes-Benz USA v. Concours Motors, 2010 WL 55473 (E.D. Wis. Jan 4, 2010), a Wisconsin federal court denied Mercedes-Benz’s motion for partial summary judgment on its breach of contract claim against its dealer, Concours. At issue concerned the parties’ oral agreement to allow the dealer to construct a new facility.  Because of low sales at the dealership, MB and Concours agreed to relocate the dealership to another location. When Concours started constructing a few facility but then stopped, MB sued claiming promissory estoppel and breach of contract.  The court refused to grant specific performance, as to do so would require the court to imply details of location, construction, cost, and deadlines related to the new facility, as well as to serve as an ongoing referee of the parties’ relationship. 

The court, however, granted MB’s motion for summary judgment on Concours’ various counterclaims. Among other things, the court rejected Concours’ claims that MB had violated the Wisconsin Motor Vehicle Dealer Law that MB threatened it and that MB unfairly cancelled the parties’ agreement. 

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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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