Connecticut warranty reimbursement law stands!

Connecticut warranty reimbursement law stands!

The U.S. Supreme Court has denied a petition to review a lower court decision that upheld the Connecticut new vehicle warranty reimbursement law, meaning that the law — passed by the state to ensure fair treatment of dealers by automaker franchisors on warranty claims stands. In April 2015, the U.S. Court of Appeals for the Second Circuit affirmed the Connecticut law, which had been challenged by the Alliance of Automobile Manufacturers. The case was Alliance of Automobile Manufacturers, Inc. v. Melody A. Currey, Commissioner of the Connecticut Department of Motor Vehicles. The Connecticut Automotive Retailers Association joined the case on behalf of the state of Connecticut as the defendant.

The Alliance alleged that the franchise law violated several provisions of the U.S. Constitution, including the Commerce Clause. The Alliance also claimed that the warranty law would harm its automakers by raising the cost for them to do business in Connecticut. Several constitutional points were examined, and in the end, the Court of Appeals and the Supreme Court upheld the law favoring dealers.

The Supreme Court decision came after a three-year fight in court by the Connecticut Attorney General on behalf of the state, NADA, and the Connecticut Auto Retailers. The result is very positive for dealers nationwide, particularly in states like Maryland and Virginia, which have warranty reimbursement laws also. WANADA tips its hat to its sister associations, Connecticut Auto Retailers and NADA for good team work on a job well done.