University Chrysler-Plymouth, Inc. v. New Motor Vehicle Board

The issues presented by this appeal are (1) whether the New Motor Vehicle Board (Board), which is composed of new motor vehicle dealers and members of the public, is an impartial forum for resolving disputes between motor vehicle dealers and manufacturers and (2) if it is not an impartial forum because of the new motor vehicle dealers’ membership, whether such defect can be remedied by voluntary recusal of the Board’s dealer members.

The appellants are the Board and the real party in interest, University Chrysler-Plymouth, Inc. (University). Chrysler Corporation (Chrysler) is the respondent. Amicus curiae briefs were filed by Motor Car Dealers Association of Southern California, Inc., and Northern California Motor Car Dealers Association, Inc., in favor of the Board and University and by the Center for Public Interest Law in support of Chrysler.

Facts

In 1983, Chrysler terminated its dealer agreement with University because University had allegedly violated the dealer agreement by relocating without Chrysler’s permission and by entering into a dual dealership. University filed a protest of the termination with the Board. A hearing was held before an administrative law…