Nebraska Attacks! NE AG Sues GM for Dealer BS

Robert Farago
by Robert Farago

GM’s dealer cull is taking flak from its flanks, as Nebraska Attorney General Jon Bruning has launched a lawsuit to stay the bankrupt automaker’s quivering, zombie hand [download press release here]. In his letter to other state AGs asking for their support, Bruning is not happy with GM’s request that its dealers waive their rights under state law. Specifically, the bit that says “No law of any state or other jurisdiction [go Puerto Rico!], including any bulk sales law or similar law, shall apply in any way to the transactions contemplated by the 363 Transaction, the MPA, the Motion, or this Order.”

Bruning calls New GM’s new dealer terms “unconscionable,” a fancy way of saying he’s getting a lot of heat from politically-connected dealers, and knows a headline maker when he sees one.

Can you say “Anti-trust” violations? Bruning can. If he can enlist Cuomo in New York, Brown in California and Cox in Michigan, this might become the stumbling block to Rattner’s “smooth and orderly process.” As if they need another one. In any case, we’ll see who signs up for this one this week; the objection will be filed by close of play on Friday.

Robert Farago
Robert Farago

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  • Ruckover Ruckover on Jun 18, 2009

    taxman, I am not sure Obama bullied any judge. Had he, I would have thought that at least one of the five conservative SC justices might have pulled the plug on that action by hearing Indiana's appeal. I do not have a JD, and I might be a wide-eyed innocent, but I do not see the arm twisting of the judice you do.

  • Anonymous Anonymous on Jun 18, 2009

    Looking at subsequent posts, I should add that I am not approving of nor holding up Jon Bruning as a beacon of light in a world of darkness. I just think its laughable to think that a) he could recruit other AGs to in essence sue the federal government over these forced dealer closures and b) win the case.

  • JohnHowardOxley JohnHowardOxley on Jun 18, 2009

    @ Srynerson: That's the difference, right there: everybody expects the Nebraska InquisitionQ

  • Bevo Bevo on Jun 19, 2009

    How has GM supposedly run afoul of antitrust? If anything, GM is trying to get smaller, which makes the Harvard school happy, and shows no ability to monkey with price, which makes the Chicago school happy.