A federal jury in Newark awarded $2.7 million on Dec. 9 to four dealers who alleged Ford Motor Co. violated the N.J. Franchise Practices Act by imposing a $125 surcharge per vehicle on its New Jersey franchisees.
The surcharges, originally $125 and later raised to $157, were Ford’s attempt to recoup amounts it paid to reimburse franchisees at retail price for parts used in making warranty repairs, as required by the statute, the dealers alleged in Liberty Lincoln-Mercury v. Ford Motor Co. In March 2006, U.S. District Judge William Bassler found the surcharge illegal and Ford stopped it a few months later.
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