Closed Chrysler Dealers File Lawsuits Against U.S. Treasury
Published: February 18th, 2011
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When Chrysler went through its unpleasant bout of restructuring in June of 2009, it shut down 789 dealerships in an effort to reduce its dealer network by 25%. Now, 64 of those dealers are filing suit against the United States Treasury Department, claiming that the government terminated those dealerships and violated the U.S. Constitution.
More specifically, the suit alleges that the government violated the Fifth Amendment–stating that property cannot be taken away and used for public purposes (restructuring a company run partially by taxpayer money) without adequate compensation–or in this case, $130 million in damages.
[Source: Autoblog]
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