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RSMo 407.835effective 28 Aug 2010

Franchisee's right to action for damages, injunction, when

In plain English

A motor vehicle franchisee (like a car dealer) can sue a franchisor (like a car company) in court if the franchisor breaks the rules of their agreement or the law. The dealer can get money back for losses and legal costs. If the franchisor broke the rules on purpose, the court can also add extra punishment money. Missouri law always applies to these disputes, and certain contract rules — like forced arbitration, giving up a jury trial, or making the dealer pay the other side's legal fees — are not allowed.

Word-for-word law

407.835. 's right to for , , when — recovery of damages — dispute . — 1. any of the to the contrary, in addition to the provided in sections 407.810 to 407.835, any franchisee may bring an action in any against a with whom the franchisee has a franchise, , , or for an act or which constitutes a violation of a franchise or the to recover by reason thereof, plus actual and reasonable expenses of , including, but not limited to, , transcripts, expert witnesses, and , and, where , such franchisee shall be entitled to , but the set forth in this section shall not be and shall be in addition to any other remedies permitted by law or .

2. In any action wherein a franchisor, manufacturer, distributor, or importer has been found to any franchisee for a of a franchise or the MVFP act, then any franchisee so damaged shall be entitled to recover actual damages sustained thereby, plus actual and reasonable expenses of litigation, including, but not limited to, depositions, transcripts, expert witnesses, and attorney fees, and, where appropriate, such motor vehicle franchisee shall be entitled to injunctive relief, but the remedies set forth in this section shall not be deemed exclusive and shall be in addition to any other remedies permitted by law or equity. In addition, a court or jury may a franchisee in such amount as it deems appropriate.

3. In the event of a dispute between a franchisee and a franchisor:

(1) At the option of the franchisee, of any , other than a before the , shall be proper in the of Cole County or the circuit court in the judicial where the franchisee resides or has its ;

(2) Missouri law shall govern the franchise and the dispute, both ;

(3) No provision in any franchise shall be valid;

(4) No of jury trial in any franchise shall be valid;

(5) No provision in any franchise providing for a franchisee to pay a franchisor's attorney fees, costs, costs, or litigation costs shall be valid;

(6) No provision in any franchise providing for mediation, arbitration, or litigation to occur outside this state shall be valid; and

(7) Unless otherwise provided in the MVFP act, the franchisor shall have the by a that it has acted , that all required notices were given, that exists for its actions, and that its actions were fair and reasonable giving due regard to the equities of the affected parties, except for the franchisee's damages and expenses of litigation.

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Source & history notes

(L. 1980 H.B. 1600 § 6, A.L. 1997 H.B. 516, A.L. 1998 H.B. 1055, A.L. 2010 H.B. 2198)

View official source

Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.

RSMo 407.835: Franchisee's right to action for damages, injunction, when | KnowMo Laws