October 18, 2002
Kelley Drye won a significant judgment on behalf of Mack Trucks Inc., in which the U.S. District Court for the District of Connecticut rejected claims from a parts dealer requesting protection under the Connecticut Franchise Act and the Connecticut Unfair Trade Practices Act.
Agreements between Mack Trucks, Mack distributors and parts dealers set various conditions under which all parties are required to operate their businesses. In this case, a Stamford-based parts dealer brought an action against Mack Trucks after a relationship with a Mack distributor was terminated, claiming that the Mack distributor was a franchisee of Mack Trucks, and that the parts dealer was therefore entitled to the additional protections the Connecticut Franchise Act provides. The Court supported Kelley Drye’s position that these claims, which could have significantly impacted Mack’s national business model, were not valid.