The Iowa Supreme Court has ruled in a franchise dispute involving a new truck dealership in north Iowa.
Peterbilt got approval from the Iowa DOT to open a dealership in Clear Lake. Owners of the Sioux City Truck Sales Peterbilt dealership sued — saying the 23 counties surrounding Clear Lake were in its 71 county “community” under state franchise law and the new dealership should not be allowed open.
The Supreme Court ruled 4-3 that the Clear Lake franchise is far enough away to not be included in the Sioux City dealership’s “community.” Justice Christopher McDonald wrote the dissenting opinion — saying the majority’s approach undermines franchisee protection, contrary to the plain text of the statute and the purpose of the law.
Here’s the ruling: Peterbilt ruling PDF