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2023 SeminarsAutomotiveEnergy/FuelFood & BeverageIndustryLitigation, Arbitration, and Other Forms of ADRManufacturingSeminarsTraining Modules

Developments and Trends in Litigation and Legislation Affecting Distribution, Franchise, and Supply Relationships

I. Developments and Trends in Litigation

A. Preliminary Injunction & Arbitration

1. The Case

a. Hyundai Constr. Equip. Americas, Inc. v. S. Lift Trucks, LLC, No. ___ So.3d ___, 2023 WL 3402311 (Ala. 2023)

2. Factual Background

a. Alabama construction equipment and forklift dealer filed suit in state court alleging the manufacturer’s attempted termination of its dealership agreements violated the Alabama Heavy Equipment Dealer Act (“AHEDA”) Ala. Code § 8-21B et seq. The Complaint also alleged that the manufacturer had wrongfully appointed an additional dealer in the territory despite the dealer agreements being non-exclusive, and that the dealer agreements themselves were “null and void” under AHEDA.
b. Dealer moved for a preliminary injunction precluding the manufacturer from following through with the termination, while the manufacturer moved to compel arbitration of the injunction and the underlying dispute. The trial court granted the dealer’s motion for injunction and denied the manufacturer’s motion to compel arbitration.

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