GM was sued by a former Cadillac dealership in Detroit that accuses the automaker of keeping them from seeking arbitration over their closing.
Dalgleish Cadillac-Oldsmobile LLC operated for 55 years in Detroit until in closed in 2010, being one of the 1,300 dealers GM had to shutter as part of its bankruptcy reorganization. A total of 2,000 dealers were targeted in that period, but GM chose to restore 700 of them during congressionally mandated arbitration hearings. On September 30th, GM had around 5,000 dealers in the U.S. and in June 2009 it had about 6,049 dealerships.
The suit was filed last month and this week it was moved to U.S. District Court. John Alexander, the lawyer for the dealershop said that if the dealership chose arbitration, they would have prevailed. The suit claims that General Motors showed a lack of good faith and committed fraud under Michigan law. The closing of the dealership made 60 people lose their jobs. The building, which was part of the original Cadillac plant complex designed in 1920 by Albert Kahn, was bought by the Wayne State University-led business incubator, tech Town.