High court won't hear dispute over Chrysler dealerships

AP News
Posted: Oct 05, 2015 9:54 AM

WASHINGTON (AP) — The Supreme Court won't hear a dispute over the constitutionality of a law that gives Chrysler dealerships shut down during the company's 2009 bankruptcy a chance to be restored to the dealer network through federal arbitration.

The justices on Monday let stand a lower court ruling that said the law doesn't interfere with a bankruptcy court order.

The 6th U.S. Circuit Court of Appeals ruled against an Akron, Ohio-area Chrysler dealership that had remained part of the Chrysler network. Fred Martin Motor Company was in the same market as another dealer that was terminated but then reinstated in an arbitration proceeding against Chrysler.

Fred Martin argued that the law giving rejected dealers a chance to return runs afoul of separation of powers principles by reopening the bankruptcy court's final judgment.