Tesla Motors claims Michigan's legislation regarding new car sales violates rights

By Michael Abella | Nov 2, 2016

GRAND RAPIDS, Mich. (Legal Newsline) – An electric vehicle manufacturer alleges a Michigan law violates its constitutional rights.

Tesla Motors Inc. filed a complaint in the U.S. District Court for the Western District of Michigan, Southern Division against Secretary of State and Chief Motor Vehicle Administrator Ruth Johnson, Attorney General Bill Schuette and Gov. Rick Snyder alleging that the law violates the 14th Amendment of the U.S. Constitution.

According to the complaint, the plaintiff alleges that it has suffered and will continue to suffer great and irreparable harm to its business due to the defendants passing legislation in 2014 that requires all new car sales to be conducted exclusively through franchised dealers.

The suit states that the plaintiff uses a direct-to-consumer sales model. The plaintiff also says it has been denied permission to provide maintenance and repair services to existing customers in Michigan.

The plaintiff requests a trial by jury and seeks an order for defendants to grant plaintiff a vehicle dealer license and a vehicle repair facility registration, award of attorneys' fees, costs and expenses and such further legal and equitable relief as the court may deem just and proper. It is represented by John J. Bursch of Bursch Law PLLC in Caledonia, Michigan; Daniel Petrocelli of O'Melveny & Myers LLP in Los Angeles, California; and Anne Huffsmith of O'Melveny & Myers LLP in San Francisco.

U.S. District Court for the Western District of Michigan, Southern Division Case number 1:16-cv-01158

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Michigan Office of the Attorney General U.S. District Court for the Western District of Michigan

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