Greensboro Ford Inc. v. Ford Motor Co.

Greensboro Ford, Inc. sued Ford Motor Company Ford, alleging that Ford breached the parties’ dealership contract in a variety of ways. After extensive discovery, the trial court granted summary judgment to Ford on all of Greensboro Ford’s claims, and Greensboro Ford appeals. For the reasons that follow, we affirm the trial court’s judgment. On February 3, 1988, Greensboro Ford entered into a sales and service agreement contract with Ford by which Greensboro Ford became a Ford dealer. Greensboro Ford ceased operating the business in late 1992, and Ford formally terminated the dealership agreement in June 1993. Another entity, Johnson Ford, subsequently began operating a satellite dealership in Greensboro Ford’s old location. In July 1997, Greensboro Ford and its president, Randy Jackson, filed suit against Ford and Johnson Ford, seeking a temporary and permanent restraining order to prevent Johnson Ford from continuing to operate its Greensboro location. Greensboro Ford also alleged that Ford had breached its contract, asserted a third-party beneficiary claim against Johnson Ford, and sought attorney fees, alleging bad faith and stubborn litigiousness.

Ford filed its first motion for summary judgment, which the trial court granted in part and denied in part. Specifically, the court granted summary judgment to Ford on Greensboro Ford’s claim that the termination was improper, and held that Michigan law governed the contract. It denied Ford’s motion regarding Greensboro Ford’s breach of contract claims.