GM Canada Sued by Dealership Owners over Breached Contract

GM Canada Sued by Dealership Owners over Breached Contract

After representing General Motors Canada for 34 complete years, Bob Slessor, owner of a dealership of the automobiles manufacturer, has sued the firm, after he was informed that his dealership would have to be closed before the end of the current year. And he is not the only one; as many as 12 GM dealers have slapped a multi-million dollar lawsuit on the company over using "high-handed and oppressive" tactics.

Through the lawsuit, the dealers are seeking a permanent injunction which would prohibit their termination, in addition to $1.5 million in punitive damage. The case is directed against the Oshawa, Ontario based Canadian GM unit.

"GM deliberately created an atmosphere of fear and oppression and denied the plaintiffs the opportunity to receive fair and meaningful legal advice and financial consultation to permit them to evaluate the purported termination", reads the statement of claim which is yet to be proved in the court.

GM, on its end, had asked the dealer to either reject or accept the shut-down within four business days of getting the closure order, i.e., by 6.00 pm, Tuesday, May 26, 2009. "To the knowledge of GM, in every case, after payment of employee severance and other necessary close-down costs, the sum offered by GM provided no compensation at all to the plaintiffs", the claim states.

GM has not commented on the development yet, and spokesperson Tony LaRocca was quoted as saying, "We don't comment on matters before the court".