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Rejected Dealer Arbitration Filings Reach 1,550; Cases Set to Begin

January 27, 2010
2 min to read


WASHINGTON - Dealerships filed about 1,550 notices of their intent to seek arbitration as of yesterday's midnight deadline, setting the stage for proceedings to begin with the case-by-case selection of arbitrators, Automotive News reported.

As many as 50 more submissions may be counted by the end of the week, an American Arbitration Association official said today. It's also possible that some duplicate filings could lower the total a bit, said association Senior Vice President India Johnson.

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The tentative tally accounts for well over half the 2,789 rejected General Motors Co. and Chrysler Group dealerships eligible to seek reinstatement through neutral arbitration under legislation signed by President Barack Obama last month.

The filings, which cost dealerships $1,625 apiece, signal the dealers' intent but do not obligate them to actually pursue arbitration. They can obtain a 50 percent refund if they withdraw their submission in time.

The arbitration association, which is overseeing the process, has started assembling lists of dozens of potential arbitrators in each state. It has started sending the lists to the two parties in particular cases.

The two sides ultimately must agree on a single arbitrator after reviewing arbitrators' backgrounds, expertise, potential conflicts of interest and availability, Johnson said.

If they can't agree, the association will try to pick an arbitrator in each case by the end of February, she said. Arbitrators' reinstatement decisions are due by June.

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