Dealerships, News ,

A MOVE by General Motors-Holdens to prevent a class action by 10 former Holden dealers against General Motors Australia from being heard as the one case has been rejected by the Supreme Court of Victoria.

The action arises out of alleged breaches of dealership agreements for the sale and service of new Holden brand motor vehicles.

The dealers say that GM-Holdens breached their franchise agreements when it failed to continue to supply Holdens for sale which it was required to do under dealer contacts.

GM-Holdens had argued that the matter should not be heard as a single trial but sought to have the matter ‘declassed” so that each dealer’s case should be heard separately.

GM-Holdens had said that the circumstances of each dealership were different and that it would not be possible to group the issues for each of the dealers into one trial.

This would have the effect of any trial having to consider each of the dealer parties’ cases individually rather than basing the case of the dealer who is the lead plaintiff, Beecham Motors.

Such a move would have the effect of prolonging the term of the hearing substantially and therefore seriously multiplying the legal costs associated with a trial.

A key consideration of the court was whether justice would be served by breaking up the hearing into separate hearings.

In a decision just released, Justice Lisa Nichols, refused GM-Holdens’ application.

By John Mellor

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