Automotive Management Group, Inc. v. New Motor Vehicle Board
Opinion
Opinion
Elia, J.
Automotive Management Group, Inc. (AMG) protested its termination as a franchised dealer of respondent/real party in interest Mitsubishi Motor Sales of America, Inc. (MMSA). AMG’S protest was rejected because it was untimely. AMG petitioned for a writ of mandate. The trial court found that substantial evidence supported the administrative law judge’s (ALJ) determination that AMG’s protest was untimely. It therefore denied AMG’s mandate petition. We reverse and remand the matter for a hearing before respondent the New Motor Vehicle Board (Board).
Facts and Procedural Background
In 1988, AMG became a franchised Mitsubishi dealer. AMG operated in Santa Cruz, California under the name Santa Cruz Mitsubishi. AMG’s relationship with MMSA was troubled. This was because AMG failed to maintain sufficient lines of credit (called “flooring”) to buy vehicles from MMSA as required by its franchise agreement.
In a January 9, 1990, letter, MMSA notified AMG of MMSA’s intention to terminate the franchise because of AMG’s failure to maintain adequate “flooring.” After AMG obtained an improved (but still insufficient) flooring commitment, MMSA rescinded the termination notice and, on…