Law Offices of Richard A. Check

About 50 General Motors and Chrysler car dealerships in Wisconsin who where to shut down as part of last year's massive government-financed bankruptcy are trying to get back in business. Under a federal law that was enacted in December, the dealers have the right to go to challenge the automakers' decision to target some dealerships for elimination and not others. Apparently Wisconsin ranks number 10 in the country in the number of dealerships filing for arbitration. Many dealers argued that the corporate decision making was random and unreasonable.

An arbitration is a trial-like hearing that is presided over out-of-court usually by a retired judge or a lawyer with particular conflict-resolution and technical skills. About 1,500 of the affected dealerships (more than 50 percent) across the country have filed for arbitration with the American Arbitration Association to get back their franchises. The hearings are scheduled to begin in March and wrap up by June.

GM filed for Chapter 11 bankruptcy protection in June 2009--the fourth largest bankruptcy in U.S. history and the largest for an industrial corporation. The federal government currently owns 60 percent of GM. Chrysler went bankrupt in April 2009.

Dealerships that have a successful outcome in arbitration could presumably help improve the state's employment picture. To some degree, more jobs could have a positive impact on residents who might otherwise be considering an individual bankruptcy in Wisconsin or looking into other forms of debt relief in Wisconsin.