Kutak Rock attorney Sandy Lowe authored the scholarly article “Constructive Termination in Franchise Law: When Manufacturers Own Appreciating Dealership Facilities,” for the Fall 2018 issue of Franchise Law Journal, which focuses on manufacturer-dealer relationships and approaches to constructive termination based on published manufacturer-dealer cases.
Mr. Lowe first focuses on Surf City Corporation v. Mitsubishi Motors North America, Inc., and a dealer’s claim addressed by the California Court of Appeal that an automotive manufacturer had constructively terminated its dealer agreement. Surf City is a case of how exploding property values may impact a dealer-tenant.
The article reviews generally the law of constructive or de facto termination in the manufacturer-dealer context. It also discusses the extent to which constructive termination principles might be implicated in leasing transactions between manufacturers and dealers in the current national real estate market.
To see the entire article, please click on the file below.
For more than 25 years, Sandy Lowe has worked with a major car manufacturer, handling dealership purchase, real estate and other transactions with its dealers across the United States.