Howard v. Chrysler Corp., 81-1889.

Decision Date25 April 1983
Docket NumberNo. 81-1889.,81-1889.
Citation705 F.2d 1285
PartiesDelmer P. HOWARD, Plaintiff-Appellant, v. CHRYSLER CORPORATION, Chrysler Motors Corporation, Chrysler Financial Corporation, Chrysler Credit Corporation, and Chrysler Realty Corporation, Colorado Dodge, Inc., Defendants-Appellees.
CourtU.S. Court of Appeals — Tenth Circuit

Irvin M. Kent, Denver, Colo., for plaintiff-appellant.

Michael S. McCarthy of Conover, McClearn, Heppenstall & Kearns, P.C., Denver, Colo. (Frederic K. Conover II, Denver, Colo., with him on the brief), for defendants-appellees.

Before SETH, Chief Judge, and BREITENSTEIN and BARRETT, Circuit Judges.

SETH, Chief Judge.

The case was tried on two claims, one under the Automobile Dealer Franchise Act, and the other on a state claim of tortious interference with contractual relations. The proof advanced by the parties in nearly all respects went to both claims without a distinction being made.

There are several preliminary issues which need not be explored as the appeal can best be dealt with on the merits.

The proof in this Dealer Franchise Act cause of action against a manufacturer which is significant is that directed to the good faith by the defendant in carrying out the contractual relationship and in its termination. The trial necessarily covered a very large number of events, incidents and business practices which will not be recited in this opinion. These have been considered on the issue of "good faith" as the term is used in the Act (15 U.S.C. § 1221(e)). The Act there defines "good faith" as

"to act in a fair and equitable manner . . . to guarantee . . . freedom from coercion, intimidation, or threats of coercion or intimidation . . . Provided, That recommendation, endorsement, exposition, persuasion, urging or argument shall not be deemed to constitute lack of good faith." (Emphasis in original.)

We have held for the actions of a manufacturer to lack good faith they must be unfair and inequitable "in addition to being for the purpose of `coercion' or `intimidation.'" Randy's Studebaker Sales, Inc. v. Nissan Motor Corp., 533 F.2d 510 (10th Cir.); Hanley v. Chrysler Motors Corp., 433 F.2d 708 (10th Cir.). Arbitrariness by the manufacturer is not enough. Salco Corp. v. General Motors Corp., 517 F.2d 567 (10th Cir.). Also under the terms of the Act itself "recommendation," "endorsement," "persuasion," "urging" and "argument" do not constitute lack of good faith. A failure to renew or a termination without an expressed reason is not necessarily an indication of lack of good faith. There must be proof of the elements described above.

The trial court in its memorandum reviewed in detail the series of events and acts which were advanced by plaintiff as violations of the statute. The court found that none constituted coercion or intimidation. Some actions it observed may have been arbitrary, but this was not in itself a violation of the Act. The trial court gave detailed consideration to the events which took place during the last four months of the relationship. It found that ...

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  • Empire Volkswagen Inc. v. World-Wide Volkswagen Corp., WORLD-WIDE
    • United States
    • U.S. Court of Appeals — Second Circuit
    • March 12, 1987
    ...Motor Co., 773 F.2d 1193, 1210 (11th Cir.1985), cert. denied, --- U.S. ----, 106 S.Ct. 1641, 90 L.Ed.2d 186 (1986); Howard v. Chrysler Corp., 705 F.2d 1285 (10th Cir.1983); Fray Chevrolet Sales, Inc. v. General Motors Corp., 536 F.2d 683 (6th Cir.1976). As we stated in Autowest, "more is re......
  • North Broadway Motors v. FIAT MOTORS
    • United States
    • U.S. District Court — Northern District of Illinois
    • September 4, 1984
    ...held that the coercive demand must be wrongful, unfair, or inequitable in order to be actionable. See, e.g., Howard v. Chrysler Corp., 705 F.2d 1285, 1286-87 (10th Cir.1983); H.C. Blackwell Co., 620 F.2d at 107; Marquis, 577 F.2d at 633; Autohaus Brugger, Inc. v. Saab Motors, Inc., 567 F.2d......
  • Fox Motors, Inc. v. Mazda Distributors (Gulf), Inc., 83-2125
    • United States
    • U.S. Court of Appeals — Tenth Circuit
    • November 26, 1986
    ...as requiring proof of both unfair treatment and some measure of coercion or intimidation to support a claim. See Howard v. Chrysler Corp., 705 F.2d 1285 (10th Cir.1983); Randy's Studebaker Sales, Inc. v. Nissan Motor Corp., 533 F.2d 510 (10th Cir.1976). "The existence of coercion or intimid......
  • State Distributors, Inc. v. Glenmore Distilleries Co.
    • United States
    • U.S. Court of Appeals — Tenth Circuit
    • July 2, 1984
    ...federal Day-in-Court Act, such conduct must be coercive and intimidating as well as being unfair and inequitable. Howard v. Chrysler Corp., 705 F.2d 1285, 1286 (10th Cir.1983); Randy's Studebaker Sales, Inc. v. Nissan Motor Corporation in U.S.A., 533 F.2d 510 (10th Cir.1976). In support of ......
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