By Amy Wilson, Crain News Service
DETROIT (Jan. 8, 2013) — Winning a court appeal or intervention by the attorney general may be the last hopes for Massachusetts AUTO dealers trying to block retail stores operated vehicle maker Tesla Motors Inc.
In a ruling last week, Norfolk County Superior Court Judge Kenneth Fishman dismissed a lawsuit against the electric vehicle maker by the Massachusetts State Automobile Dealers Association and several car dealers. The judge said the plaintiffs lacked standing to sue.
Robert O'Koniewski, the association's executive vice president, disagreed, contending dealers have standing under changes made to state franchise law in 2002. "If you read the statute, it's pretty clear: A factory cannot own a store, and a dealer can sue for injunctive relief if they feel the public is being harmed."
Tesla didn't immediately comment.
Tesla's first Massachusetts location opened in September in the Natick Mall in a Boston suburb. The auto dealers filed suit in October, contending Tesla violated state licensing, consumer protection and franchise laws.
Mr. O'Koniewski said the association is considering options, including an appeal. The dealer association also has had discussions with the state attorney general, whose office has enforcement power over state franchise law.
This report appeared on the website of Automotive News, a Detroit-based companion publication of Tire Business.