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11
Automobile Dealers Day-In-Court Act (15 USC § 1222)
In this case the Plaintiff claims that the Defendant violated a federal
statute known as the Automobile Dealers Day-In-Court Act - -an Act of
Congress that required the Defendant to act in "good faith" in
[terminating] [not renewing] the Plaintiff's franchise agreement. "Good
faith" is the duty of each party to a franchise agreement (and all officers,
employees, or agents of each party) to act in a fair and equitable
manner toward each other so as to guarantee each party freedom from
coercion, intimidation, or threats of coercion or intimidation from the
other.
In order to prevail on this claim, the Plaintiff must prove each of the
following facts by a preponderance of the evidence:
First: That the Defendant failed to act in "good faith" in the matter of the
[termination] [nonrenewal] of the franchise;
Second: That the lack of good faith by the Defendant involved wrongful
acts of coercion or intimidation, or threats thereof, toward the Plaintiff;
And
Third: That the Plaintiff suffered damages as a result of those wrongful
acts and conduct of the Defendant.
In the verdict form that I will explain in a moment, you will be asked to
answer a series of questions concerning each of these factual issues.]
The fact that a dealer has a written franchise agreement with a
manufacturer does not automatically give the dealer the right to have
the written agreement renewed when it expires. The law requires only
that the manufacturer act in "good faith" with regard to the matter of
renewal. The manufacturer is always free to advance its own business
interests by making recommendations and arguments in an effort to
goad a dealer into more efficient operations or a higher level of sales.
The manufacturer is also free to enforce the reasonable provisions of
the contract and to refuse a renewal of the agreement if the dealer has
materially breached its terms.
A manufacturer's behavior becomes unlawful only when it does not
exercise good faith and its actions toward the dealer amount to coercion
and intimidation.
In order to prove coercion or intimidation, the Plaintiff must prove
conduct on the part of the Defendant that results in the dealer's acting,
or refraining from acting, against the dealer’s will. The Plaintiff must
show that the manufacturer attempted to force or coerce the Plaintiff in
some way into doing something it had a lawful right not to do, or to
refrain from doing something it had a lawful right to do. Acts or
statements that do nothing more than enforce the contract and attempt
to hold the Plaintiff to its terms do not amount to coercion or
intimidation. The coercion or intimidation must include a wrongful
demand that will result in penalties or sanctions if not complied with. In
addition, the coercion or intimidation must be actual; that is, the mere
fact that a dealer feels that it has been coerced or intimidated is not
sufficient. It is for you to decide on the basis of all the circumstances
disclosed by the evidence whether the Defendant's conduct reached the
level of actual coercion, intimidation or threats thereof.
If you find in favor of the Plaintiff you will then consider the issue of the
Plaintiff's damages. In that regard you should award the Plaintiff an
amount of money that will fairly and adequately compensate it for the
damage the evidence shows it has sustained and is reasonably certain
to experience in the future as a result of the failure to renew the
franchise.
In considering the issue of the Plaintiff's damages, you are instructed
that you should assess the amount you find to be justified by a
preponderance of the evidence as full, just and reasonable
compensation for all of the Plaintiff's damages, no more and no less.
Compensatory damages are not allowed as a punishment and must not
be imposed or increased to penalize the Defendant.] Also,
compensatory damages must not be based on speculation or
guesswork because it is only actual damages that are recoverable. You
should consider the following elements of damage, to the extent you
find them proved by a preponderance of the evidence, and no others:
[State or enumerate the elements of recoverable damages] [You are
instructed that any person who claims damages as a result of an
alleged wrongful act on the part of another has a duty under the law to
"mitigate" those damages - - that is, to take advantage of any
reasonable opportunity that may have existed under the circumstances
to reduce or minimize the loss or damage.
So, if you should find from a preponderance of the evidence that the
Plaintiff failed to seek out or take advantage of a business or
employment opportunity that was reasonably avail able under all the
circumstances shown by the evidence, then you should reduce the
amount of the Plaintiff's damages by the amount that could have been
reasonably realized if the Plaintiff had taken advantage of such
opportunity.] [The Plaintiff also claims that the acts of the Defendant
were done willfully, intentionally or with callous and reckless indifference
to the Plaintiff's rights so as to entitle the Plaintiff to an award of punitive
damages in addition to compensatory damages. If you find for the
Plaintiff, and if you further find that the Defendant did act with malice,
willfulness or callous and reckless indifference to the rights of others,
the law would allow you, in your discretion, to assess punitive damages
against the Defendant as punishment and as a deterrent to others. If
you find that punitive damages should be assessed against the
defendant, you may consider the financial resources of the Defendant
in fixing the amount of such damages [and you may assess punitive
damages against one or more of the Defendants, and not others, or
against more than one Defendant in different amounts].]
11
Automobile Dealers Day-In-Court Act (15 USC § 1222)
SPECIAL INTERROGATORIES TO THE JURY
Do you find from a preponderance of the evidence:
1. That the Defendant failed to act in “good faith” in the matter of the
[termination] [nonrenewal] of the franchise? Answer Yes or No
[Note: If you answered No to Question No. 1 you need not answer the
remaining questions.]
2. That the lack of good faith by the Defendant involved wrongful acts of
coercion or intimidation, or threats thereof, toward the Plaintiff? Answer
Yes or No [Note: If you answered No to Question No. 2 you need not
answer the remaining questions.]
3. That the Plaintiff suffered damages as a result of those wrongful acts
and that conduct of the Defendant? Answer Yes or No
4. That the Plaintiff should be awarded the following damages: [State or
enumerate the recoverable elements of damages] $
SO SAY WE ALL.
Foreperson
DATED:
ANNOTATIONS AND COMMENTS
“Bad faith” has been defined narrowly and does not mean simply a lack of
fairness, but entails a showing of coercion. Absent coercion, there can be no
recovery under the Act, even if the manufacturer otherwise acts in “bad faith” as
that term is normally used. See Cabriolet Porsche Audi, Inc. v. American Honda
Motor Co., 773 F.2d 1193, 1210 (11th Cir. 1985), cert. denied, 475 U.S. 1122
(1986); see also Carroll Kenworth Truck Sales, Inc. v. Kenworth Truck Co., 781
F.2d 1520, 1525 (11th Cir. 1986); Bob Maxfield, Inc. v. American Motors Corp.,
637 F.2d 1033, 1038-39 (5th Cir.), cert. denied, 454 U. S. 860 (1981); H. C.
Blackwell Co., Inc. v. Kenworth Truck Co., 620 F.2d 104, 106 (5th Cir. 1980).
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