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Republic drops Toyota suit
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July 23, 1997: 11:24 a.m. ET
Huizenga's company says new law makes case against carmaker unnecessary
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NEW YORK (CNNfn) - Wayne Huizenga's Republic Industries said Wednesday it is dropping a lawsuit against Toyota Motor Corp. because a new franchise law took effect in Texas that accomplishes the same goal.
The Florida billionaire's company had sued Toyota for withholding consent for a Houston dealer to sell his business to Republic.
Texas Gov. George Bush recently signed legislation that limits a manufacturer from withholding consent to certain circumstances.
Toyota, which has sued Republic in California, Arizona and Texas to prevent the company from acquiring more of its dealerships, had no immediate comment.
It wasn't immediately clear what impact Republic's action would have on Toyota's litigation.
Jim Cole, senior vice president of Republic, said the Texas law solidifies the company's stance.
Under the new law, a manufacturer must prove a new owner lacks business experience or the financial means to take over a franchise.
"We hope our decision to withdraw the lawsuit marks the beginning of a more productive dialogue with Toyota," Cole said in a statement.
Republic Industries is a holding company that owns the nation's largest chain of new-car dealerships along with solid-waste services, electronic-security services, and the Florida Panthers hockey team, among other ventures. Huizenga has made the acquisition of used-car dealers a priority.
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Toyota
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