Norfolk County Superior Court Monday ruled that the Massachusetts State Automobile Dealers Association cannot sue Tesla Motors in order to block Tesla’s retail stores. Judge Kenneth Fishman denied a preliminary injunction against Tesla’s suburban Boston store.
The Association’s Executive Vice President Robert O’Koniewski said the association disagrees with the decision and says the association has standing under the Massachusetts franchise law of 2002.
O’Koniewski contends the law states a factory cannot own a store and a dealer can sue for injunctive relief if there is proof the public is being harmed. In October, two dealerships and a dealer sued Tesla, declaring that Tesla’s stores violate Massachusetts state consumer protection and franchising laws.
Tesla, on the other hand, declared the ruling validation of the company’s retail strategy, not only in Massachusetts but in all states across the country. In fact, in December 2012, Tesla was awarded municipal approval for a dealer license in order to have a second Tesla store in Natick, planned to open in late January 2013.
