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VOLUME 6 Winter 2004 | ||||||
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CONSUMER CLASS ACTION WIN BY DEFENSE Jeffrey C. Sotland, Esq.
For the last few years, Mintzer Sarowitz Zeris Ledva & Meyers has been representing an automobile dealership in Allegheny County, Pennsylvania in a Class Action Lawsuit titled Homziak vs. Mervis Motors. et al. This case arose out of the alleged improper profit of an automobile dealership in the sale of extended service contracts to customers under the Motor Vehicle Sales Finance Act. During the pendency of that protracted litigation, various issues arose that have an important effect upon the Dealership industry. The expected value, had the suit prevailed, was in the hundreds of millions of dollars.
During the pendency of that case, the Department of Banking rendered an Opinion that Dealers can take a profit on extended service contracts under the Motor Vehicle Sales Finance Act. This was perceived as an obvious right of the Dealer, even though it was not specifically stated in the Motor Vehicle Sales Finance Act because, at the time the MVSFA was drafted in the 1940s, there were no extended service contracts.
Finally, and after several Trial Court and Appellate Court arguments, we are happy to report that the Supreme Court has denied certiorari in favor of our client and the Automobile Dealership Industry. We are happy to report that these cases should now all be dismissed in their entirety, as the Appellate Courts have ruled in our favor. There are also approximately ten other cases pending and stayed that were dependent upon a successful outcome for the plaintiffs in this case. Those suits should be dismissed forthwith. |
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