Florida Dealer Files Federal Suit

Florida Cadillac dealer Norman Braman has brought a federal lawsuit against General Motors over their EBE program. Braman, former owner of the Philadelphia Eagles football team, has deep pockets. I don't think they are as deep as General Motors' pockets but I'm guessing that he will be waging a public relations battle as well as a legal battle. He was told Automotive News last week that GM is waging war on dealers.

Florida passed a state law in 2009 that calls for manufacturers to pay a "reasonable" portion of an incentive to dealers who don't comply with facility requirements if they satisfy other elements of the manufacturer's program. According to Braman's attorney, GM has told dealers in Florida it will only pay 20 percent.

I am interested to see if other Florida dealers jump on this suit. I am not an attorney, but it seems like all Florida dealers are subject to the same laws. Will there be a class certified in this case?

Stay tuned for updates!