INJUNCTION DENIED IN SUBARU, DISTRIBUTOR CASE.

Automotive News, May, 1999 by Freedman, Eric

A federal judge in New York has refused to issue a preliminary injunction that would prevent Subaru of America Inc. from terminating its agreement with Subaru Distributors Corp., its distributor for New York and northern New Jersey.

No termination notice has been sent.

U.S. District Judge Colleen McMahon said each side likely will win on certain issues - if the dispute ever goes to trial.

Lawyers for both sides claimed victory in the decision: Subaru of America because the preliminary injunction request was denied and some of its interpretations of the contract were upheld, and Subaru Distributors Corp. because its distributor agreement was found subject to the New York dealer law and a 90-day notification period.

Both sides said...

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