United Group Insurance

Supreme Court rules in truck franchise case involving Clear Lake, Sioux City

News

June 3rd, 2022 by Ric Hanson

(Radio Iowa) – The Iowa Supreme Court has ruled in a franchise dispute involving a new truck dealership in north Iowa. Peterbilt got approval from the Iowa D-O-T to open a dealership in Clear Lake. Owners of the Sioux City Truck Sales Peterbilt dealership sued — saying the 23 counties surrounding Clear Lake were in its 71 county “community” under state franchise law, and the new dealership should not be allowed to open.

The Supreme Court ruled 4-3 that the Clear Lake franchise is far enough away to not be included in the Sioux City dealership’s “community.” Justice Christopher McDonald wrote the dissenting opinion — saying the majority’s approach undermines franchisee protection, contrary to the plain text of the statute and the purpose of the law.