Dealership problems

[dave&ginny]

Dealership are always fighting on who can sell and what they can sell. The Internet has made this problem even worse because the consumer is much more educated. I was surprised to read today that Jayco had litigation against one of their premier dealerships, National Indoor RV.

This is a dealership known for great customer service and I believe a real asset for Jayco. From the experiences that I've heard about, they'd the place I'd purchase my next RV from. I sure hope Jayco doesn't bite the hand that feeds them.

[Gary.Jones]

What is the litigation Dave? I think there have been issues between NiRVC and Jayco before.....


Gary

[Lault]

From the Elkhart Truth :SOUTH BEND — Jayco is suing a chain of RV dealerships in the southern United States after a sting operation showed it was selling Entegra Coach motorhomes outside its contracted territory in Texas.
The lawsuit was filed June 13 in U.S. District Court in South Bend claiming National Indoor RV Centers is improperly selling Entegra Coach models, which are a luxury class motorhome line produced by Thor Industries-owned Jayco, from a dealership in Lewisville, Texas.
The dealership chain has agreements with Jayco to sell Entegra Coach models, which are priced from $400,000 to $700,000, from its locations in Arizona and Georgia. However, Motorhome Specialists in Dallas, Texas, owns an exclusive agreement from Jayco to sell Entegra Coach motorhomes throughout that part of Texas.
Because other dealerships with contracted franchises to sell Entegra Coach motorhomes are complaining to Jayco about the improper sales from National Indoor RV Centers in Texas, Jayco claims the situation is “causing harm to Jayco and the goodwill associated with the Entegra Coach brand,” the lawsuit says.
Jayco also claims the improper sales are creating a confusing situation for customers, who don’t know which dealership is the authorized sales representative in Texas.
Jayco sent a private investigator to National Indoor RV Centers’ dealership in Texas on May 9 to verify the improper sales of Entegra Coach motorhomes were taking place. The investigator posed as a potential Entegra Coach buyer and claims the dealership indeed was selling new Entegra Coach models in Texas.
The investigator wrote in an affidavit filed with Jayco’s lawsuit that she was put in contact with a dealer named Angie Morell at the Texas dealership. Morell made comments throughout their conversation that would indicate she knew Entegra Coach models should not have been sold there, such as why she couldn’t display Entegra Coach brochures in public areas of the dealership and why the investigator would have to travel to another dealership to pick up the motorhome after the sale was completed.
“They have attempted to cover up what they are doing because they know it is illegal,” Jayco’s lawsuit says.
Still, Morell, who also is named as a defendant, offered to negotiate the price of a new Entegra Coach model at the Texas dealership and complete the entire transaction there, according to the private investigator. She noticed a whiteboard in the dealership naming salesmen and models that showed at least 12 Entegra Coach transactions had occurred there recently.
Jayco’s lawsuit says the manufacturer twice confronted officials at National Indoor RV Centers about improperly selling new models from the Texas location, but the dealership refused to stop.
Jayco is seeking a restraining order and an injunction from the court prohibiting National Indoor RV Centers from selling Entegra Coach motorhomes in Texas. Jayco also is seeking an undisclosed financial settlement for trademark infringement, profits from the improper sales and other damages – with interest included.
A judge on June 19 denied Jayco's request for a temporary restraining order against National Indoor RV Centers because Jayco couldn't prove that the dealership selling new Entegra Coach models in Texas would cause "irreparable harm." Jayco also didn't seek a preliminary injunction along with the request for a restraining order, as required by local court rules.
National Indoor RV Centers had not replied to Jayco’s specific claims by Monday. Instead, the dealership asked the court to dismiss the lawsuit because Jayco filed it in the U.S. District Court for the Northern District of Indiana, which lack jurisdiction over the area from where the dispute is arising.
The dealership has asked the court to stop the lawsuit from proceeding until a judge decides whether the case should continue in the South Bend federal court.
A hearing on Jayco's request for a preliminary injunction forcing National Indoor RV Centers to stop selling Entegra Coach models in Texas has been scheduled for July 25. There is no timetable for when the court will rule on Jayco’s request for a restraining order and injunction or National Indoor RV Centers’ request to throw the case entirely.

[757driver]

Very interesting.

[Gary.Jones]

Larry

Thanks..... That is pretty clear. Will be interesting to watch the court proceedings.

Gary

[edgray]

I'm quite surprised Thor/Jayco apparently has lawyers that can't figure out basic procedures or what court has jurisdiction, but I'm shocked that they resorted to the tactics described in this article to gather the "evidence" on which the suit is based.
Regardless, this can't bode well for Brett and company to maintain the relationship with EC and Thor. Because of their superior business model, I'm sure that NIRVC will continue to grow and thrive in the RV business. IMHO, Thor/Jayco needs NIRVC much more than NIRVC needs them.

[DeeGee]

Depending upon the contract between Jayco and MHS, Jayco may not really have any choice about this. I'm betting that a sale is a sale and Jayco likes NIRVC, but they have to file this suit anyway.

[lowejug]

Wow... now that's surprising... all I hear on this forum is nirvc is so great
And the best Entegra dealer in the country.. and Entegra is suing them.
Never thought I would read that... interesting facts.. thanks for the info

[wnytaxman]

Manufacturers have to protect their franchisees and I'm going to guess that their dealers in Texas had complained and Jayco had a contractual obligation to listen. We see the same territorial restrictions with others. RVOne sells Entegra in Orlando but not in Tampa. They sell Newmars in Tampa and not in Orlando or any of their other locations. Those are the rules and dealers have to play by those rules or face the consequences.

Too bad because I know many have spoken highly about the dealership, but we'll have to see how this one plays out. Generally in any court battle only the lawyers come out ahead. That's from experience!

[Bchtravlr]

I believe this is one reason that you won't see an NIRVC in Florida where many of us would like to see them. The Exclusivity agreements with RVOne and Lazy Days are locking out any other potential dealers currently.

I am hoping that some of the original agreements that were signed by Entegra, prior to Jayco and prior to Thor, will disolve as the realities of the M/A activity occur.

[Gary.Jones]

I have been told by someone that should know, that NiRVC is the second largest volume seller of Entegra Coaches in the country, and not far behind MHSRVC, which has claimed the title. I would think that the manufacturer and the dealer should be able to work out an understanding that would be to everyone's advantage. A sour relationship between Middlebury and NiRVC would appear to be in no-ones best interest, except the lawyers. And as someone else has said, various contracts may essentially require Middlebury to "push" any complaints.


Gary

[Mike&Chris]

Wow! This is very surprising to me also. We worked with Brett in Lewisville last year, drove a Dutch Star, and spent a few hours talking MHs. We chose Entegra due to the warranty but mainly because of Brett. If he had not had access to Entegra we would have purchased a Newmar. We actually bought in Georgia as we were told they could not sell from Texas. I expect Jayco's hand was forced by MHSRV. Rather than improve their service and customer experience they continue to complain.

Personally, if I were buying a new MH Today and could not buy an Entegra from NIRVC, I would most likely buy a Newmar because I have more confidence in NIRVC than Jayco.

It will be interesting to see how this works out.

[Matt D]

That's just astounding.

I think you guys hit the nail on the head in the comments about Entegra being obligated to defend their franchisee. I cannot think they would willingly jeopardize a huge part of their sales.

It stinks to see Angie's name involved in this. She's a class act.

If someone prints up some FREE ANGIE tee shirts, I'll buy one.

-Matt

[dave&ginny]

In my opinion......National Indoor RV has a fantastic reputation for service which happens to be rare in the RV industry as a whole. I believe if I were in Jayco's shoes, I would somehow be cementing the relationship with a dealership with this type of reputation.