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Republic 1, Honda 0
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September 29, 1997: 5:50 p.m. ET
Court throws out suit seeking to block Republic's purchases; Honda to appeal
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NEW YORK (CNNfn) - A federal court in Los Angeles has thrown out a request by Honda Motor Co. that sought to limit Republic Industries Inc.'s ability to acquire more Honda dealerships in the U.S.
In a statement, Republic Industries said the court also denied Honda's request for an injunction that would have blocked Republic's expansion plans.
"We have long maintained that Honda dealers have the right to sell their dealerships to Republic and that Republic has the right to buy these dealerships," said Steven R. Berrard, president and co-chief executive of Republic.
Honda plans to appeal lower court ruling, Dick Colliver, executive vice president of American Honda, said in a separate statement.
Republic, based in Ft. Lauderdale, Fla., has battled the Japanese automakers in court since quickly pole-vaulting to become the nation's largest dealership group.
The case raised objections that were similar to those brought on by Toyota Motors Corp., which agreed last month to settle its dispute against Republic, the one-time waste and landfill company, and its Chairman Wayne Huizenga.
In addition to appealing the lower court's decision, Honda also said it will pursue claims in state courts where Republic attempts to acquire a Honda or Acura dealership.
"While we are disappointed with the Federal District court's decision, we remain confident that the courts will ultimately sustain our position that Republic's buying binge is bad for American Honda's dealers and customers and violates American Honda's rights," Colliver said.
-- Robert Liu
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