Chrysler Group defends dealer arbitrations

Client(s) Chrysler Group LLC

Jones Day assisted client Chrysler Group LLC ("Chrysler") with the defense of twenty-two arbitrations brought by former dealers of Chrysler LLC ("Old Chrysler"), in which those former dealers sought to be added to Chrysler's dealer network. In bankruptcy proceedings filed in the United States Bankruptcy Court for the Southern District of New York, the Bankruptcy Court approved restructuring the dealer network as part of Old Chrysler's sale of assets to Chrysler. In December of 2009, after the dealer networking changes were approved by the Bankruptcy Court, Congress passed a new law allowing certain non-retained dealers to file requests for binding arbitration seeking to be added to the dealer network of the new company. Hundreds of cases were scheduled for arbitration under the expedited statutory timetables imposed by Congress, many of which proceeded to trial before arbitrators appointed by the American Arbitration Association. Jones Day was retained by New Chrysler to help coordinate its defense efforts for cases filed in Ohio. All of Jones Day's cases were resolved favorably with agreed dismissals.