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Dealerships – additional franchises

By: WISCONSIN LAW JOURNAL STAFF//February 23, 2012//

Dealerships – additional franchises

By: WISCONSIN LAW JOURNAL STAFF//February 23, 2012//

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Wisconsin Court of Appeals

Civil

Dealerships – additional franchises

This appeal arises out of an objection by Zimbrick, Inc., d/b/a Zimbrick Honda (Zimbrick) to a notice from American Honda Motor Co., Inc. (Honda) that Honda intended to establish a second Honda dealership within Zimbrick’s sales area. The Division of Hearings and Appeals (Division) found good cause to allow Honda’s proposed dealership and the circuit court affirmed. On appeal, Zimbrick asserts that the Division deviated from a prior practice without explaining the deviation and this constitutes grounds for reversal under Wis. Stat. § 227.57(8) (2009-10). According to Zimbrick, under the prior practice the “public interest factors” in Wis. Stat. § 218.0116(7)(b) disfavor the establishment of an additional dealership if that will reduce economies of scale for the existing dealership, unless there is a showing of insufficient competition in the relevant market area. Because we conclude that the Division does not have such a prior practice, we affirm the circuit court order affirming the Division’s decision. Not recommended for publication in the official reports.

2011AP1208 Zimbrick Inc. v. State of Wisconsin Division of Hearings and Appeals, et al.

Dist IV, Dane County, Markson, J., Vergeront, J.

Attorneys: For Appellant: Norman, Paul R., Madison; Baker, Eric A., Madison; For Respondent: Tarver, Sandra L., Madison; Grimmer, Kim, Madison; Wells, Steven J., Minneapolis, Minn.

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