Termination appeal.

Checkout our iOS App for a better way to browser and research.

(1) A motor vehicle dealer who has reason to believe that a manufacturer, distributor, or manufacturer representative has violated section 44-20-124 (1)(d) or (1)(w) may appeal to the board by filing a complaint with:

  1. The executive director; or

  2. A district court if neither the executive director nor the administrative law judge,appointed in accordance with this section, holds a hearing concerning the complaint within sixty days after the complaint was filed.

  1. Upon filing of a verified complaint alleging with specific facts that a violation hasoccurred under this section, the termination, elimination, modification, or nonrenewal of the franchise agreement is automatically stayed, without the motor vehicle dealer posting a bond, until a final determination is made on each issue raised in the complaint; except that the executive director, administrative law judge, or court may cancel the stay upon finding that the cancellation, termination, or nonrenewal of the franchise agreement was for any of the reasons specified in section 44-20-124 (1)(d)(III). The automatic stay maintains all rights under the franchise agreement until the final determination of the issues raised in the verified complaint. The manufacturer, distributor, or manufacturer representative shall not name a replacement motor vehicle dealer for the market or location until a final order is entered.

  2. If a verified complaint is filed with the executive director, the executive director shallrefer the complaint to an administrative law judge with the office of administrative courts for final agency action.

  3. In resolving a termination complaint, the manufacturer, distributor, or manufacturerrepresentative has the burden of proving any claim made that the factors listed in section 44-20124 (1)(d)(II) apply to the termination, cancellation, or nonrenewal.

  4. The prevailing party in a claim that a termination, cancellation, or nonrenewal violates section 44-20-124 (1)(d) or (1)(w) is entitled to recover attorney fees and costs, including expert witness fees, incurred in the termination protest.

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 88, § 2, effective October 1.

Editor's note: This section is similar to former § 12-6-131 as it existed prior to 2018.


Download our app to see the most-to-date content.