Mass. dealership lawsuit against Nissan can proceed, federal judge rules

A Massachusetts dealership can pursue claims that Nissan North America's sales performance metrics and use of volume-based sales incentive programs were arbitrary and unfair, a federal judge ruled.

The decision by U.S. District Judge Allison Burroughs allows Coastal Nissan, in Norwell, to proceed on allegations the automaker violated the state's dealer law.

The suit contends that Nissan's metrics gave an unfair advantage to stores abutting open market areas while artificially inflating the number of sales other dealerships had to meet, said dealership lawyer Sara Judge of Boston.

"One-size-fits-all across the nation doesn't work," and automakers should look at how local market conditions affect their sales incentive programs, Judge told Automotive News.

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• Aaron H. Jacoby

  Los Angeles Managing Partner
• Sara D. Judge

  Partner