West Virginia Automobile and Truck Dealers' Association v. Ford Motor Company
23-683
W. Va.Mar 11, 2025Background
- Plaintiffs, West Virginia Ford and Lincoln dealers, renovated their dealerships between 2013 and 2016 to meet Ford’s “Trustmark 3” facility standards, with Ford’s required and approved elements, receiving matching funds.
- In 2020, Ford expanded its Lincoln Commitment Program (LCP) to incentivize exclusive "Vitrine" Lincoln facilities, offering higher payments to participating dealers.
- Plaintiffs did not build Vitrine-exclusive facilities and were therefore denied the higher LCP incentives (2.75% of MSRP) but received lower incentives (1%) for each Lincoln sold.
- Plaintiffs sued Ford in federal court, alleging that Ford’s new LCP incentive violated West Virginia Code § 17A-6A-10(1)(i) by requiring substantial changes to facilities improved within 10 years and thus falling within the statute’s ten-year “grandfather clause.”
- The federal court certified to the West Virginia Supreme Court the question whether completion of manufacturer-required image elements under a voluntary incentive program (like the Trustmark renovations) triggers the ten-year statutory protection for such dealers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does voluntary completion of manufacturer "required and approved" renovations under an incentive provision trigger the ten-year grandfather clause of W. Va. Code § 17A-6A-10(1)(i)? | The statute protects dealers if they completed renovations or image elements required/approved by the manufacturer within 10 years, even if done via voluntary participation in incentive programs. | Only facility improvements that were actually required (not voluntarily undertaken) by the manufacturer trigger the statute’s protection; plaintiffs’ renovations were not “required.” | Affirmed; the ten-year grandfather clause applies regardless of voluntariness, as long as elements were "required and approved" by the manufacturer under the optional program. |
Key Cases Cited
- Light v. Allstate Ins. Co., 203 W. Va. 27, 506 S.E.2d 64 (W. Va. 1998) (sets standard of review for certified questions as de novo)
- Ohio Cnty. Comm’n v. Manchin, 171 W. Va. 552, 301 S.E.2d 183 (W. Va. 1983) (statutory interpretation required only if ambiguity)
- Crockett v. Andrews, 153 W. Va. 714, 172 S.E.2d 384 (W. Va. 1970) (plain statutory language to be applied without interpretation)
- State v. Gen. Daniel Morgan Post No. 548, Veterans of Foreign Wars, 144 W. Va. 137, 107 S.E.2d 353 (W. Va. 1959) (statutory terms given ordinary meaning)
- Meadows v. Wal-Mart Stores, Inc., 207 W. Va. 203, 530 S.E.2d 676 (W. Va. 1999) (statutory construction must give effect to every word)
- United Steelworkers of Am., AFL-CIO, CLC v. Tri-State Greyhound Park, 178 W. Va. 729, 364 S.E.2d 257 (W. Va. 1987) (legislation presumed not meaningless or useless)
