Honda Australia has been ordered to pay more than $13.7 million in contractual damages to Brighton Automotive Holdings (Astoria Honda Brighton) by the Supreme Court in addition to $3.8 million in interest plus most costs.
Go Auto News Premium reports that the Australian Automotive Dealer Association (AADA) has welcomed the Supreme Court’s decision, which it says sets a precedent for the industry.
AADA chief executive James Voortman says this is good news for Astoria, which has been in a dispute with Honda for more than four and a half years since Honda terminated its franchise agreement.
Voortman says the difference between Honda’s initial offer and the amount awarded by the court is extraordinary. Many in the industry have observed this precedent.
According to Go Auto News Premium, Honda Australia must pay $17.5 million to Astoria by January 10, 2025.
It reports that the automotive industry team at HWL Ebsworth represented Astoria Brighton in its dispute with Honda Australia.
HWL Ebsworth said in a statement to Go Auto News Premium: “The Supreme Court judgment against Honda Australia is vindication for Astoria Brighton, one of Australia’s longest-serving Honda dealers before the termination of their dealer agreement.
“The unwillingness of Honda Australia to adequately compensate Astoria Brighton has resulted in a long and drawn out legal dispute culminating in a significant damages award in favour of Astoria Brighton.
“Honda Australia argued before the Supreme Court that Astoria Brighton was not entitled to compensation due to the termination of its dealer agreement or only a nominal amount.
“The Supreme Court categorically and comprehensively rejected that position. This case sends a strong message to the industry that OEMs and distributors will be held to account if they refuse to compensate them adequately.”
