WMW, Inc. v. American Honda Motor Co.
291 Ga. 683
| Ga. | 2012Background
- WMW, a corporate Honda dealer in Roswell, operates a new-car dealership since 1976 and a separate Alpharetta service-only location since 2000 under a Honda franchise.
- In 2010 Honda planned to authorize Sobh to open a new Honda dealership in Cumming, within eight miles of Alpharetta but beyond WMW's Roswell sales area.
- WMW sued Honda and Sobh under OCGA § 10-1-664, seeking to enjoin the new dealership within the Act’s anti-encroachment provision.
- The trial court dismissed for lack of standing; the Court of Appeals affirmed, rejecting Alpharetta as a relevant market area for WMW.
- This Court granted certiorari to resolve how to define a corporate dealership’s standing under the Act, and to address mootness issues raised by Honda after the briefing.
- Honda subsequently argued the case was moot due to a voluntary cessation of the challenged conduct, which this Court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What is the proper eight-mile relevant market area for a corporate dealership? | WMW contends Alpharetta location should count toward its market area because the corporation exists at multiple locations. | Honda argues the relevant market area is tied to the dealership’s selling location, not every corporate location or service facility. | The relevant market area is the eight miles around where the dealer sells new cars (Roswell), not all corporate locations. |
| Does WMW qualify as a dealership beyond selling new cars at multiple locations? | WMW is a dealership because it sells and services Honda vehicles at its facilities. | The Act distinguishes dealers based on selling versus exclusively repairing; service facilities do not expand standing for a car-selling dealer. | WMW is a car-selling dealer, not exclusively repairing; standing rests on its selling location(s). |
| Should the case be dismissed as moot due to Honda's voluntary cessation? | Mootness should not defeat appellate review given the public importance of the issue. | Voluntary cessation can render an appeal moot unless recurrence is likely. | Mootness denied; the case proceeds to the merits to resolve standing. |
Key Cases Cited
- U.S. Bank Nat. Assn. v. Gordon, 289 Ga. 12 (Ga. 2011) (integrated statutory construction; statutes construed as a whole)
- Bunn v. State, 291 Ga. 183 (Ga. 2012) (certiorari review; right-for-any-reason affirmance doctrine)
- United States v. Concentrated Phosphate Export Assn., 393 U.S. 199 (U.S. 1968) (voluntary cessation and mootness principles)
- United States v. W.T. Grant Co., 345 U.S. 629 (U.S. 1953) (public interest and mootness considerations in standing)
- City of Mesquite v. Aladdin's Castle, Inc., 455 U.S. 283 (U.S. 1982) (mootness and ongoing legality of practices)
