AEM member companies should consider contacting their attorneys to determine the impact of amendments to North Dakota’s new dealer law on current dealership contracts in the state, even while AEM and four of its members wage a legal challenge to the law.
AEM and four of its manufacturer member companies filed suit in federal district court in North Dakota on July 24, 2017 challenging North Dakota Senate Bill 2289, which enacts changes to the state’s farm equipment dealership law. Plaintiffs seek a court order granting a preliminary and permanent injunction to void, and bar the enforcement of, the newly-enacted amendments.
SB 2289 took effect on August 1, 2017. While the North Dakota attorney general has agreed not to seek enforcement of the new law pending the court’s decision on the injunction request, manufacturers and dealers are now considered subject to its terms. The law’s most likely immediate impact is on product warranty claims accruing on or after August 1, 2017.
The state’s response to the complaint is due on September 30, 2017. The court has scheduled a half-day hearing on plaintiffs’ injunction request for November 7, 2017. It’s not known when the court will issue its decision.
Also, the North Dakota Implement Dealers Association has requested court approval to intervene in the case in support of the state. That request is awaiting the court’s decision.
Senate Bill 2289 can be viewed here.
For additional information contact AEM Director of State Government & Industry Relations Stephanie See (firstname.lastname@example.org), tel: 202-552-0770).