Filed under: Government/Legal, Chrysler
Back in June of 2009, Chrysler terminated relationships with 789 dealerships in an effort to cut its dealer network down by 25 percent. A few of those dealerships didn't think too highly of the move, which was orchestrated in part by the federal government. As a result, 64 former Chrysler franchisees have reportedly filed a suit against the United States Treasury and are seeking at least $130 million in damages.
Was the move to terminate these dealerships a violation of the U.S. Constitution? According to the lawsuit, the automotive task force violated the Fifth Amendment, which essentially states that property cannot be taken away and used for public purposes without adequate compensation.
[Source: Automotive News - sub. req. | Image: Drew Phillips/AOL]
Report: 64 axed Chrysler franchisees file suit against U.S. Treasury originally appeared on Autoblog on Fri, 18 Feb 2011 09:57:00 EST. Please see our terms for use of feeds.
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