Econ One’s managing director Mr. Ilhan Geckil was retained as an economic damages and automotive industry expert for a matter between two automotive dealerships in Akron, Ohio.

In 2007, Spitzer Autoworld Akron (“Spitzer”) and Fred Martin Motor Company (“Fred Martin”) owned and operated Chrysler-Jeep and Dodge franchises in the Akron, Ohio market. Spitzer and Fred Martin operated these franchises prior to the bankruptcy, proceedings of their franchisor, DaimlerChrysler Motors Company LLC (later changed to Chrysler, LLC), after the Great Recession of 2007-08. In 2007, Chrysler developed a plan to realign its Dodge and Chrysler-Jeep franchises in the Akron market. These dealership moves would have been subject to protest under Ohio law. Under Ohio law, a dealer who moves within 10 miles of an existing dealer of the same line make is subject to a protest.

To carry out the plan set by Chrysler, Spitzer, Fred Martin, and Chrysler entered into a series of agreements. Under the terms of the agreements: (a) Spitzer would allow Fred Martin to relocate its Dodge franchise from Hartville to Norton (within five miles of Spitzer’s Dodge franchise) without protest; (b) Fred Martin would allow Spitzer to move its Chrysler-Jeep franchise from East Market Street to Vernon Odom Boulevard, and then move both franchises to Arlington Road (in Green), without protest. All parties (Spitzer, Fred Martin, and Chrysler) signed the relevant agreements.

In 2009, Chrysler went into bankruptcy. Following bankruptcy, Chrysler reorganized under a new entity, Chrysler Group, LLC, which later changed to FCA US LLC and most recently to Stellantis. Spitzer’s Akron franchises were rejected in the proceedings. In December of 2009, the United States Congress passed Public Law No. 111-17 (“The Act”). Section 747 of The Act required Chrysler to give Spitzer an opportunity to arbitrate the decision to reject Spitzer’s Chrysler, Jeep, and Dodge franchises in the Akron Sales Locality. In 2010, an arbitrator issued a decision in favor of Spitzer and ordered Chrysler to reinstate Spitzer’s franchises in the Akron Sales Locality. Following this decision, Chrysler notified Chrysler dealers in the market of its intent to reinstate the Chrysler, Jeep, and Dodge vehicle lines.

In December 2010, Fred Martin filed a protest to Spitzer’s reinstatement and its planned move. Spitzer filed a Complaint for Breach of Contract/Damages and Injunction against Fred Martin on March 15, 2011. After the initial Fred Martin protest and Spitzer complaint, the legal battle in this matter continued until the trial in 2021. The most recent Amended Complaint by Spitzer was filed in 2020. Spitzer’s Amended Complaint against Fred Martin includes the following claims: (a) Fred Martin allegedly breached its contract with Spitzer and Chrysler by protesting the reinstatement of Spitzer. Fred Martin’s actions caused harm to Spitzer; and (b) Fred Martin’s breach of contract resulted in the loss of profit and other damages associated with Spitzer’s attempt to open a dealership in Green, Ohio. Spitzer continues to be damaged each day it is prevented from reopening its dealership.

After submitting his expert report on economic damages and lost profits and testifying in front of a jury in an Ohio state court, our client received a favorable decision by the jury.