Auto & Retail Franchise

MWI's panel of professional neutrals have extensive experience mediating and arbitrating automotive and retail franchise disputes and are experienced in working with conflicts that involve long-term contractual relationships.  MWI's case managers will assist the franchisee and headquarters to prepare for the mediation or arbitration process to ensure that both parties' business interests and their future working relationship are taken into account.

SAMPLE MEDIATORS AND ARBITRATORS - click on a name or picture for more information

Michael Dickstein

Denise Madigan

Bud Silverberg

Kim Stamatelos

Kenneth Starr

SCOPE OF SERVICES

MWI administers all aspects of the services including intake, convening, logistics and follow-up. This efficient process allows parties to resolve their dispute amicably, saving both time and money so that everyone can get back to business.

Since 2004, MWI has held a number of exclusive automotive contracts that ensure the use of mediation or arbitration in all dealer/manufacturer dealings. These contracts allow our clients to avoid the time and cost of litigation. Both mediation and arbitration utilize a three-person panel consisting of a seasoned MWI mediator or arbitrator and two peer neutrals, a Dealer Neutral and a Manufacturer Neutral, both fully trained in mediation and arbitration. Parties are provided rosters with bios for Dealer Neutrals and Manufacturer Neutrals to rank order based on preference.  This process determines the two peer panel members. By utilizing the combination of an experienced process expert from MWI and two industry specialists, MWI works with both parties to reach a mutually beneficial settlement or award, depending on the process.

TYPES OF DISPUTES

SAMPLE ENGAGEMENTS

• A third-generation dealer with multiple franchises for a large auto manufacturer received the audit results from the manufacturer’s incentive audit department. Based on missing and questionable documentation, the dealer faced a debit of $40,000 from his open account. The manufacturer has a dispute resolution process that allows dealers to request mediation within a prescribed number of days from the close of the audit. The dealer filed in time and the debit was postponed pending the results of the mediation. In the mediation, the focus was on reconciling the audit issues within the context of a business discussion. Because the dealer was a third-generation franchisee representing multiple brands for the manufacturer, both sides were highly motivated to work to mutually agreeable terms. The parties reached an agreement that reconciled various items of the audit and enabled the dealer to pay off the remaining debit in monthly installments over two years. In addition, the manufacturer agreed to work with its field organization to address other issues that arose during the mediation, including that the dealer felt “ignored” and both parties would benefit from an investment in their working relationship.
  

• Based on the results of an audit by the manufacturer, the number of qualifying sales for a previous quarter were determined to be ineligible and the dealer was going to lose significant bonus monies. Although the bonus monies specifically did not qualify for mediation, the issues behind the ineligible sales did. In the process of preparing for mediation, the dealer uncovered systematic fraud by its General Manager, who was fired before the mediation. At the mediation, the dealer produced documents that reconciled enough sales as eligible to come within one unit of the goal to qualify for the bonus monies. The dealer also explained the issue with the General Manager, that he had been fired and that the dealer was implementing controls to prevent any fraud in the future by any other employees. With the reconciliation of eligibility of sales and the forward-looking improvements by the dealer, the manufacturer clarified that fraud is the responsibility of the dealer, but agreed to approve the bonus monies. In addition, the manufacturer warned that the results would be very different if the same issues arose again.

For more information about MWI's Auto & Retail Franchise ADR Services, please contact Tad Mayer at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. or 800-894-8323.