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Judge Dismisses Dealers’ Class Action Lawsuit Against GM Canada

A group of 181 former General Motors dealers in Canada — some of who still own GM dealerships in Canada — have been locked in a heated legal battle with General Motors Canada Limited in part over whether or not the company provided them with sufficient time to consider shutting down their stores during the financial recession. Now, the group’s class action lawsuit has been dismissed

In the lawsuit, the dealers claim the six-day window GM provided them to consider the wind-down agreements they eventually signed in return for financial compensation was inadequate, according to The Globe & Mail.

Judge Thomas McEwan sided with GM Canada, saying it did in fact provide its dealerships with enough time to consider winding down their dealerships and that the job losses were a necessary tactic in staving off the company’s bankruptcy.

The dealerships were originally shuttered in 2009, as GM looked to avoid bankruptcy protection by axing 240 stores, roughly a third of its dealer network in the country. And though GM Canada managed to avoid going into bankruptcy, its parent company couldn’t stop the bleeding and was forced to file for chapter 11 protection.

The rest, as they say, is history.

A far-too-tall Ontarian who likes to focus on the business end of the auto industry, in part because he's too tall to safely swap cogs in a Corvette Stingray.

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Comments

  1. Disgusting decision. GM production will be gone from Canada in a couple of years anyway.

    Reply
  2. Big Corporate Money buys Legal Decesions in it’s Favour.
    Big Corparate Money Also Picks it’s Judges.

    Reply

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