Rimrock Chrysler, Inc. v. Lithia Motors, Inc.

When Chrysler Group, LLC filed with the Montana Department of Justice, Motor Vehicle Division a notice of intent to establish an additional Chrysler-Jeep dealership in Billings, Lithia Motors, Inc. filed an administrative protest. The Department sustained Lithia’s protest. Rimrock Chrysler, Inc. sought judicial review, but the district court dismissed the petition on the grounds of mootness and lack of a justiciable controversy. While Rimrock’s appeal was pending, the Sixth Circuit Court of Appeals ruled that section 747 of the United States Consolidated Appropriations Act of 2010 preempted state regulation of new dealerships issued under certain dealership protest laws. The Montana Supreme Court dismissed Rimrock’s appeal. On remand, Rimrock moved to vacate the Department’s administrative decision and to dismiss the the judicial review proceeding on the ground that section 747 preempted Montana dealer protest laws and deprived the state of subject matter jurisdiction to hear the administrative claim. The district court denied Rimrock’s motion and dismissed the appeal. The Supreme Court (1) affirmed the district court’s order denying Rimrock’s motion to vacate and to dismiss, holding that Rimrock waived its section 747 preemption defense when it entered into the settlement agreement; and (2) reversed the district court’s order dismissing Rimrock’s petition for judicial review, holding that Rimrock’s petition involved a justifiable controversy, and the court erred in concluding otherwise. View "Rimrock Chrysler, Inc. v. Lithia Motors, Inc." on Justia Law