The state's highest court yesterday handed Tesla Motors a victory, ruling that car dealers don't have standing to sue the electric-car manufacturer for selling directly to customers at its Natick store.
The ruling upheld a lower court's decision to dismiss a lawsuit brought by the Massachusetts State Automobile Dealers Association and some individual dealers, who had argued that Tesla was trying to circumvent state law and operate an automobile dealership without the required license.
However, Justice Barbara Lenk, writing for the unanimous court, said the law "is aimed primarily at protecting motor vehicle dealers from injury caused by the unfair business practices of manufacturers and distributors with which they are associated, generally in a franchise relationship."
"Tesla has never had franchises and so is not governed by this law," said Diarmuid O'Connell, the California-based company's vice president for corporate and business development.
O'Connell said the SJC's decision "clarifies and brings to a close two years of legal challenge to our right to operate in Massachusetts."
Since the lawsuit was filed, Natick officials have granted Tesla a dealership license, the state's highest court noted.
Robert O'Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association, said he was disappointed by the SJC's decision.
"We really need to sit down and assess what the ruling means and what we want to do about it," O'Koniewski said.
That could include asking the Legislature "to address the language of the law as it relates to standing," he said.
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