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Sterling Truck Corp. v. Motor Vehicle Board of the Texas Department of Transportation

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OPINION

Sterling Truck Corporation and Ford Motor Company appeal from the order by the Motor Vehicle Board of the Texas Department of Transportation concluding that the companies improperly opposed the transfer of truck sales franchises assigned to Metro Ford Truck Sales, Inc. The Board assessed civil penalties against Sterling for $428,000 and Ford for $467,000 based on alleged violations of statutes requiring that they not unreasonably withhold approval of a proposed transfer to a qualified buyer. See Tex. Occ. Code Ann. §§ 2301.359, .360, .458 (West 2004). The Board also ordered that Sterling and Ford accept Metro’s proposed transfer of the franchise to Stanley V. Graff. We conclude that the Board’s order must be reversed because of the Board’s failure to give proper effect to a previous decision in a related case by this Court. Accordingly, we reverse the Board’s order and remand this cause for further proceedings.

This cause is part of a long-running dispute between Ford and its successors*fn1 and Metro, a Ford franchisee.*fn2 In 1995, Ford attempted to terminate Metro’s franchise. Metro protested, prompting a proceeding before the Board to determine whether Ford had good cause to terminate the franchise (Metro I). See Tex. Occ. Code Ann. § 2301.453 (West 2004). That protest triggered entry of a statutory stay that prevented the parties from committing any act or omission that would affect a legal right, duty, or privilege of any party before the Board. Id. § 2301.803 (West 2004). In 1998, the Board found that Ford had good cause to terminate the franchise, but imposed conditions on the termination–including that Ford allow Metro to sell the franchise. The district court affirmed the good cause finding, reversed the imposition of conditions on the termination as unlawful, and remanded for further proceedings. This Court affirmed the district court’s judgment. Ford Motor Co. v. Motor Vehicle Bd., 21 S.W.3d 744, 748-54 (Tex. App.–Austin 2000, pet. denied). The supreme court denied review on April 5, 2001.

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