Burke, Warren, MacKay & Serritella's Ira Levin recently obtained an important ruling in federal court that will advance the interests of motor vehicle dealerships throughout Illinois. At issue in the case was whether a manufacturer could proceed with a lawsuit against a dealer in the federal district court in Chicago where the matter was within the jurisdiction of the Illinois Motor Vehicle Review Board.

 

The Motor Vehicle Board was created to decide a variety of disputes under the Illinois Franchise Act as the result of a 1994 Illinois Supreme Court case (in which Burke, Warren partner Bill Kelly represented one of the dealerships involved). In that case, the Court decided that it was the Legislature's duty to create an administrative body with the specific expertise to ensure that actions taken by manufacturers were consistent with the critical public interest in a stable motor vehicle industry in Illinois. In this most recent case, the U.S. District Court for the Northern District of Illinois thwarted a manufacturer's efforts to by-pass the Motor Vehicle Board and have its dispute decided in federal court. The court ruled that it was vital for the Motor Vehicle Board to hear the case, since only the Board could "determine the number of car dealerships such a ruling might affect, the ramifications on Illinois commerce, or the impact on the public interest."

 

Mr. Levin, who tried the first case before the Motor Vehicle Board, and who last year successfully defended the constitutionality of the Motor Vehicle Franchise Act and the authority of the Board in both state and federal courts, said this most recent ruling is a critical one: "It further confirms that the Board is the primary forum in which locally-owned dealerships can seek protection of their substantial investments." Levin added: "The court's ruling also reinforced the Board's role of ensuring that the public can expect dependable and reliable sources for motor vehicle sales and services." 

 

Under the direction of Mr. Levin and Mr. Kelly, Burke, Warren, MacKay & Serritella serves the needs of motor vehicle franchise owners in all phases of their businesses, including litigation, employment and labor, purchases and divestitures, as well as succession planning. Mr. Levin was supported in this latest case by Burke, Warren’s Aaron Stanton and Jim Geoly. For more information, contact Ira Levin at ilevin@burkelaw.com / (312) 840-7065 or Bill Kelly at wkelly@burkelaw.com / (312) 840-7061.