Jaguar Land Rover Hit with Antitrust Class Action Lawsuit

On Wednesday, a proposed class action lawsuit was filed against a unit of Jaguar Land Rover North America LLC (JLR) and dealership unit Land Rover of Portland (LPR), alleging the luxury automobile company has violated antitrust laws.

According to the Land Rover class action lawsuit, the auto manufacturer prohibits U.S. purchasers of their vehicles from selling or exporting their vehicles within one year of purchase.

Plaintiff Araman Nahavandifar, a wholesale used car broker and dealer in California, filed the lawsuit in a U.S. District Court in California in hopes of representing a Class of California wholesale dealers who were harmed by the agreement not to broker or export Jaguar Land Rover vehicles within the last four years.

The class action lawsuit alleges that Jaguar Land Rover places restrictions on vehicle purchasers limiting what they can do with their vehicle for a year after purchase in an act of conspiracy with JLR dealerships.

According to the Land Rover class action lawsuit, “To accomplish its goal, JLR threatens its authorized dealerships that it will penalize them if they permit the sale or transfer on one of their vehicles within the first year of purchase by a buyer. In response to such threats, the dealerships (such as LRP) entered into agreements with JLR that they will prohibit the sale or export of their vehicles within one year.”

Nahavandifar claims that he has both represented clients who have wanted to buy or sell a Jaguar Land Rover vehicle and he personally has attempted to buy or sell a vehicle as well. According to the Land Rover class action lawsuit, “In both instances, Plaintiff was unable to complete the business transaction because either the dealership would not sell to him a JLR vehicle or the client could not consummate the transaction due to the Agreement Not To Broker or Export.”

Earlier this year, LRP reportedly took legal action against Nahavandifar and his client for allegedly exporting a JLR vehicle, and LRP is seeking $30,000 in liquidated damages. “LRP’s action in enforcing the agreement between JLR and LRP to restrain the trade and sale of its vehicles is yet another overt act in furtherance of the conspiracy,” according to the Jaguar Land Rover class action lawsuit

The plaintiff brought forth two counts against the defendants. “Defendants Land Rover of Portland and Jaguar Land Rover have engaged in contract, combination, conspiracy and trust to prohibit the sale or export of vehicles – a restraint in trade. Defendants’ conduct violates California’s Cartwright Act and unfair competition laws.”

Nahavandifar seeks certification of a California Class and two subclasses: 1) Class Members who represented clients affected by the “Agreement Not To Broker or Export” and 2) Class Members who could not buy or sell a vehicle due to the “Agreement Not To Broker or Export.”

In terms of damages sought, Nahavandifar is looking to recover threefold the damage to sustained by Class Members, a judgment against the defendants, award of attorneys’ fees and costs of litigation, general and special damages, restitution and disgorgement and other relief as allowed. He also hopes to stop the defendants from engaging in the acts that led him to bring forth the antitrust class action lawsuit.

Nahavandifar is represented by Reza Sina of Sina Law Group.

The Jaguar Land Rover Antitrust Class Action Lawsuit is Nahavandifar DBA Luxury Motors of California v. Don Rasmussen Co., et al., Case No.2:15-cv-09315, in the U.S. District Court for the Central District of California.