Government Asks Court to Toss Chrysler Dealerships Suit, from The National Law Journal.
The U.S. government has moved to dismiss a suit from 18 former Chrysler dealerships that lost their contracts with the automaker during its bankruptcy proceeding in 2009.
In a Dec. 15 filing with the U.S. Court of Federal Claims, the government argued in that plaintiffs had failed to state a regulatory takings claim by proving Chrysler had any realistic alternatives to the Troubled Asset Relief Program—which provided $14 billion in bailout funds to the company and its auto loans arm, Chrysler Financial Corp.—to stay afloat and maintain its dealership agreements.
“Spitzer baldly asserts that Chrysler and all of its dealers would have survived without Government funding,” states the government. “[A] wholly speculative allegation that runs counter to the reality of the situation.”