Federal Judiciary

The Seventh is on the Warpath Today . . .

By Robert Loblaw

Ridge Chrysler v. Daimler Chrysler, 06-4140 (7^th Cir., Feb. 20, 2008)

Fresh on the heels of this Posner decision comes an equally vitriolic Easterbrook decision. The plaintiffs are Chrysler dealers who sued after Chrysler tried to exercise a contract provision that would require them to pay for their inventory up front, which would have effectively ended their franchises. The plaintiffs sued, claiming among other things that Chrysler?s actions were motivated by discrimination.

The district court granted the plaintiffs a preliminary injunction, based in part on that plaintiffs? assurances that the franchises were financially sound ? assurances which turned out to be false. The plaintiffs also failed to preserve the evidence held on their computers, which were repossessed and destroyed when their franchises went under. When these misdeeds came to light, the district court dismissed their suit as a sanction, and the Seventh affirms. Chief Judge Easterbrook writes,

One who misuses litigation to obtain money to which he is not entitled is hardly in a position to insist that the court now proceed to address his legitimate claims, if any there are. Plaintiffs insist that the claims of racial discrimination are legitimate, but that is dubious. The complaint and appellate brief narrate repugnant events, but when the time came in discovery to produce the notes that supposedly recorded the discriminatory statements by Chrysler?s employees, the notes were nowhere to be found. Plaintiffs have behaved like a pack of weasels and can?t expect any part of their tale be believed.

Just a few more scalps for the Seventh?s collection.

Full post as published by Decision of the Day on February 20, 2008 (boomark / email).