Kentucky Statutes 190.062 – Action for damages — Power of commission — Applicability of chapter and KRS Chapter 190A — Written demand for mediation required before civil action involving recreational vehicle franchise issues may be brought
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(1) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, or the terms or provisions of any waiver, any person who is injured in his business or property by a violation of this section or any person so injured because he refuses to accede to a proposal for an arrangement which, if consummated, would be in violation of this section, may bring a civil action in the Franklin Circuit Court to enjoin further violations, to recover the actual damages sustained by him, together with costs of the suit, including a reasonable attorney‘s fee.
(2) The commission may order, deny, suspend, or revoke the license of any new motor vehicle dealer, new recreational vehicle dealer, manufacturer, distributor, factory branch, or factory representative for failing to comply with any provisions of KRS
190.010 to 190.080 or KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factory branches, or factory representatives; or in lieu thereof, or in addition thereto, may assess monetary penalties of a civil nature not to exceed one thousand dollars ($1,000) for each violation.
(3) The provisions of KRS § 190.010 to KRS § 190.080 and KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factor branches, or factory representatives, shall apply to all persons required to be licensed under the terms herein, and to dealerships and contracts between new motor vehicle dealers, new recreational vehicle dealers, and manufacturers, distributors, factory branches, or factory representatives at the time of its passage, and to all such future new motor vehicle dealerships and contracts.
(4) (a) In addition to the provisions of this section, before a civil action involving recreational vehicle franchise issues is brought, the party bringing suit for an alleged violation of this chapter shall serve a written demand for mediation on the offending party. The demand for mediation shall include a brief statement of the dispute and the relief sought by the party making the demand. The party making the demand shall serve the demand by certified mail to one (1) of the following addresses:
1. In an action between a new recreational vehicle dealer and a manufacturer, the address stated in the dealer agreement between the parties;
2. In an action between a new recreational vehicle dealer and a warrantor that is not a manufacturer, the address stated in any agreement between the parties; or
3 In an action between two (2) new recreational vehicle dealers, the address of the offending dealer in the records of the commission.
(b) Within twenty (20) days after a demand for mediation is served under this subsection, the parties shall mutually select an independent mediator who is
approved by the commission and meet with that mediator for the purpose of attempting to resolve the dispute at a location in this state selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or if the parties agree to the extension.
(c) The service of a demand for mediation under this subsection tolls the time for the filing of any complaint, petition, protest, or other action under this chapter until representatives of both parties have met with the mediator selected pursuant to paragraph (b) of this subsection for the purpose of attempting to resolve the dispute. If a complaint, petition, protest, or other action is filed before that meeting, the court shall enter an order suspending the proceeding or action until the mediation meeting has occurred and may, if all the parties to the proceeding or action stipulate in writing that they wish to continue to mediate under this subsection, enter an order suspending the proceeding or action for as long a period as the court considers appropriate.
(d) Each of the parties to the mediation under this subsection is responsible for its own attorney fees. The parties shall equally divide the cost of the mediator.
Effective: January 1, 2015
History: Amended 2014 Ky. Acts ch. 27, sec. 20, effective January 1, 2015. — Created
1982 Ky. Acts ch. 374, sec. 3, effective July 15, 1982.
(2) The commission may order, deny, suspend, or revoke the license of any new motor vehicle dealer, new recreational vehicle dealer, manufacturer, distributor, factory branch, or factory representative for failing to comply with any provisions of KRS
Terms Used In Kentucky Statutes 190.062
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Certified mail: means any method of governmental, commercial, or electronic delivery that allows a document or package to have proof of:
(a) Sending the document or package. See Kentucky Statutes 446.010 - Commission: means the Motor Vehicle Commission. See Kentucky Statutes 190.010
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Distributor: which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers, or who maintains factory representatives, or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers. See Kentucky Statutes 190.010
- Factory branch: which means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, new motor vehicles to a distributor, wholesaler, or new motor vehicle dealer, or for directing or supervising, in whole or in part, factory or distributor representatives, and shall further include any sales promotion organization, whether the same be a person, firm, or corporation, which is engaged in promoting the sale of new motor vehicles in this state of a particular brand or make to new motor vehicle dealers. See Kentucky Statutes 190.010
- Factory representative: which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of his or her, its, or their new motor vehicles, or for supervising or contracting with his or her, its, or their dealers, or prospective dealers. See Kentucky Statutes 190.010
- Franchise: means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product, along with any addendums to the franchise agreement. See Kentucky Statutes 190.010
- Manufacturer: means any person, partnership, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of new motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, which is controlled by the manufacturer. See Kentucky Statutes 190.010
- Motor vehicle: means every vehicle intended primarily for use and operation on the public highways that is self-propelled, including low-speed motor vehicles as defined in KRS §. See Kentucky Statutes 190.010
- Motor vehicle dealer: means any person not excluded by subsection (3) of this section, engaged in the business of selling, offering to sell, soliciting, or advertising the same, of new or used motor vehicles, or possessing motor vehicles for the purpose of resale, either on his or her own account, or on behalf of another, either as his or her primary business or incidental thereto. See Kentucky Statutes 190.010
- New motor vehicle: means a vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold to the holders of a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the make of new vehicle, which is new, and on which the original title has not been issued from the franchised dealer. See Kentucky Statutes 190.010
- Person: means a person, partnership, firm, corporation, association, trust, estate, or other legal entity. See Kentucky Statutes 190.010
- Recreational vehicle: means a vehicle that:
(a) Is primarily designed as temporary living quarters for noncommercial recreation or camping use. See Kentucky Statutes 190.010 - State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
190.010 to 190.080 or KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factory branches, or factory representatives; or in lieu thereof, or in addition thereto, may assess monetary penalties of a civil nature not to exceed one thousand dollars ($1,000) for each violation.
(3) The provisions of KRS § 190.010 to KRS § 190.080 and KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factor branches, or factory representatives, shall apply to all persons required to be licensed under the terms herein, and to dealerships and contracts between new motor vehicle dealers, new recreational vehicle dealers, and manufacturers, distributors, factory branches, or factory representatives at the time of its passage, and to all such future new motor vehicle dealerships and contracts.
(4) (a) In addition to the provisions of this section, before a civil action involving recreational vehicle franchise issues is brought, the party bringing suit for an alleged violation of this chapter shall serve a written demand for mediation on the offending party. The demand for mediation shall include a brief statement of the dispute and the relief sought by the party making the demand. The party making the demand shall serve the demand by certified mail to one (1) of the following addresses:
1. In an action between a new recreational vehicle dealer and a manufacturer, the address stated in the dealer agreement between the parties;
2. In an action between a new recreational vehicle dealer and a warrantor that is not a manufacturer, the address stated in any agreement between the parties; or
3 In an action between two (2) new recreational vehicle dealers, the address of the offending dealer in the records of the commission.
(b) Within twenty (20) days after a demand for mediation is served under this subsection, the parties shall mutually select an independent mediator who is
approved by the commission and meet with that mediator for the purpose of attempting to resolve the dispute at a location in this state selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or if the parties agree to the extension.
(c) The service of a demand for mediation under this subsection tolls the time for the filing of any complaint, petition, protest, or other action under this chapter until representatives of both parties have met with the mediator selected pursuant to paragraph (b) of this subsection for the purpose of attempting to resolve the dispute. If a complaint, petition, protest, or other action is filed before that meeting, the court shall enter an order suspending the proceeding or action until the mediation meeting has occurred and may, if all the parties to the proceeding or action stipulate in writing that they wish to continue to mediate under this subsection, enter an order suspending the proceeding or action for as long a period as the court considers appropriate.
(d) Each of the parties to the mediation under this subsection is responsible for its own attorney fees. The parties shall equally divide the cost of the mediator.
Effective: January 1, 2015
History: Amended 2014 Ky. Acts ch. 27, sec. 20, effective January 1, 2015. — Created
1982 Ky. Acts ch. 374, sec. 3, effective July 15, 1982.