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Court dismisses Volvo claims in dealership dispute

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A federal judge in Indianapolis has ruled in favor of Andy Mohr Truck Center in two lawsuits stemming from a broken business relationship between the dealer and Volvo Trucks North America.

Volvo Trucks awarded auto dealer Andy Mohr’s Truck Center a contract to sell its trucks in 2010. When the business relationship soured, both parties filed lawsuits in the Southern District of Indiana, claiming breach of contract, among other things.

Mohr says his award of the Volvo franchise was dependent on the dealer being able to house it and the Mack Truck franchise under one dealership. He said Volvo Trucks and Mack Trucks agreed to that arrangement, but that the transactions had to occur separately. Once he was awarded the Volvo Truck franchise, the Volvo Group then failed to award Mohr the Mack Truck franchise.

Volvo’s suit claims that Mohr and the dealership haven’t fulfilled the “promises, representations and unqualified guarantees” they made, including moving into a new facility and reaching sales goals.

Mohr and Volvo – as defendants in the other’s suit – filed motions to dismiss certain claims. Judge William Lawrence denied Volvo’s motion to dismiss Mohr’s claims of theft under the Indiana Crime Victims’ Act, breach of written contract and breach of oral contract. The judge granted Mohr’s motion to dismiss claims of fraudulent inducement, promissory estoppel and equitable estoppel in Volvo’s action.

Lawrence also ordered Tuesday the Mohr plaintiffs to show cause within 14 days as to why these to cases shouldn’t be consolidated since they may share common questions of law and fact.

 

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  • Good Decision
    Good decision from the court! Volvo needs to hire better Contract Law Attorneys.

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