TS & A Motors, LLC v. Kia Motors America, Inc.Annotate this Case
In December 2007, Kia Motors America, Inc. (Kia) and TS & A Motors, LLC d/b/a Kia of Somersworth (Somersworth) entered into a Dealer Sales and Service Agreement (Dealer Agreement), which governed the franchise relationship between the parties. Under this agreement, Somersworth was required to employ certain parts and service personnel. In 2011 and Kia sent a series of letters notifying Somersworth of perceived staffing and training deficiencies. These letters referenced Somersworth’s failure to meet technician training requirements in 2009 and 2010, to adequately staff and train personnel in its parts and service department, and to meet the minimum number of technicians required to participate in Kia’s “Optima Hybrid Program.” During Somersworth’s tenure as a dealer, Kia employees overseeing Somersworth made note of its high employee turnover rates. The Board determined that over the course of its operations as a dealer, Somersworth violated the provision of the Dealer Agreement that required certain parts and service personnel “on an almost constant basis.” Kia management worked with Somersworth to remedy its staffing deficiencies. It sent numerous written notifications to Somersworth referencing the inadequacy of its parts and service staffing, met with Somersworth to discuss its concerns over staffing, and gave Somersworth the “benefit of the doubt” when the dealer promised to hire the appropriate number of staff members. Somerset appealed a superior court decision to affirm a New Hampshire Motor Vehicle Industry Board ruling that Kia properly terminated its franchise agreement with Somersworth. Finding no reversible error, the New Hampshire Supreme Court affirmed the Board's decision.