Colorado

Apr 26, 2010 7:26 PM

Chrysler challenges Colorado law

Chrysler Group LLC is challenging a Colorado law affecting auto dealers whose franchise agreements were terminated. 

Chrysler filed a complaint Friday in U.S. Bankruptcy Court in New York, saying the law conflicts with orders of the bankruptcy court. It also says the law impairs existing contracts, in violation of the U.S. and Colorado constitutions.  Legislation that Gov. Bill Ritter signed into law last month gives terminated Colorado dealers a right of first refusal or payments if an automaker awards another nearby franchise to someone else within five years. The terminated dealers also could seek compensation for facility upgrades.

The Colorado attorney general's office is reviewing the complaint.

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