Chrysler has filed suit against the state of Colorado, claiming that a new dealer-protection law is illegal.
Signed into law last month by Gov. Bill Ritter, the measure requires Chrysler and General Motors to make special accommodations to Colorado auto dealers that were involuntarily shut down last year after the bankruptcy filings of GM and Chrysler.
The law mandates that terminated dealers be given the option to reopen before the automakers award franchises to other dealers in the area.
It also requires the manufacturers to reimburse dealers for upgrades they were required to make.
In the lawsuit filed in U.S. Bankruptcy Court, Chrysler said the law violates previous bankruptcy-court rulings as well as contract provisions in the U.S. and Colorado constitutions.
The suit names as defendants Colorado Attorney General John Suthers, Department of Revenue head Roxy Huber and Bruce Zulauf, director of the Colorado Motor Vehicle Dealer Board.
In legislative hearings earlier this year, a deputy attorney general said the bill is constitutional and that the state will defend it if sued.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
