British Motor Car Distributors, Ltd. v. New Motor Vehicle Board

Real party in interest British Motors of Monterey, Inc. (British Motors) filed a protest with the California New Motor Vehicle Board (Board) over the termination of its franchise relationship with respondent British Motor Car Distributors, Ltd. dba Maserati Import Company (hereinafter Maserati). After an administrative hearing, the Board found that Maserati had terminated British Motors’ dealership without just cause and ordered the franchise reinstated. The superior court granted Maserati’s petition for writ of administrative mandamus and overturned the decision of the Board. We find none of the grounds cited by the trial court to be supportable and therefore reverse the judgment granting the writ.

Background

Maserati is a distributor of Maserati motor cars, headquartered in San Francisco. British Motors is a new car dealer in the City of Monterey, which sells multiple lines of foreign automobiles.

In June 1980 Maserati and British Motors entered into a standard form written franchise agreement under which the latter was appointed as a dealer of Maserati automobiles. The agreement was made effective until December 31, 1980. The contract provided that either party…