Cases & Deals

GM defeats litigation brought by dealer who breached dealership agreements

Clients General Motors Company

Jones Day represented General Motors Company in a bankruptcy case filed by one of its dealers. GM won a judgment in the Bankruptcy Court holding that the dealer breached its dealership agreements by commingling competing vehicle lines in its General Motors facility, effectively preventing the dealer from assigning its dealership agreements to a third party.

GM prevailed on appeals to the District Court and Eighth Circuit Court of Appeals filed by a creditor who alleged he was damaged by the bankruptcy court’s decision. The District Court dismissed the creditor’s appeal as moot and refused to vacate the Bankruptcy Court’s favorable judgment, and the Eighth Circuit Court of Appeals affirmed the District Court’s decision.

Gretter v. General Motors LLC (In re Gretter Autoland, Inc.), Case No. 14-02831 (Bankr. S.D. Iowa), appeal dismissed as moot, Case No. 3:15-cv-117 (S.D. Iowa July 15, 2016), aff’d, Case No. 16-3490 (8th Cir. July 25, 2017)