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A judge has ordered Honda to pay $13.6 million in damages to dealer Brighton Automotive in a suit over the car maker's move away from a dealership model.
Dealer Brighton Automative is gunning for $13.9 million in damages after Honda cut its contract off prematurely, with Honda hopeful the figure is more like $12.1 million.
A Melbourne car dealer has largely lost a consumer law case against Honda Australia over its decision to abandon a dealership model, but is set to receive compensation for over 2,600 new vehicles it could have sold if Honda hadn’t ended its five-year contract early.
Honda has admitted that it owes compensation to a Melbourne car dealer for a deliberate breach of contract following its decision to ditch a dealership model in Australia, but argues a $22 million damages claim by the dealer needs a "reality check".
Honda Australia has been hit with a $6 million penalty for misleading communications made to customers of three dealerships during a restructuring in which the car maker's shuttered its independent dealer network in favour of an agency model.
The consumer regulator has asked a judge to impose penalties of almost $10 million against Honda Australia for misleading the customers of two former authorised dealerships, a penalty up to 10 times what the car maker says it should pay.
Honda has admitted to the Australian Competition and Consumer Commission's claims that it mislead the customers of two former authorised dealerships, but is seeking to avoid pecuniary penalties for the “accidental” misconduct.
The Australian Competition and Consumer Commission has taken Honda Australia to court, alleging the car maker made false or misleading representations to customers about two former authorised dealerships.
Honda Australia has been hit with a lawsuit by three former dealers over its decision to abandon a dealership model in Australia, the latest car maker to face litigation by car dealers.
Honda Motors has failed to strike out or permanently stay a proceeding seeking discovery for a possible lawsuit over the Japanese car maker's decision to abandon its Australian dealership model, with a judge rejecting Honda's argument that the preliminary discovery application didn't meet the requirements for service abroad.