Lawsuit charges Chrysler wrongfully terminatedAfrican-American officer of Oklahoma City...

OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 5, 1997--A multimillion- dollar lawsuit was filed Wednesday in Oklahoma against Chrysler Motors Corp. and one of Oklahoma's largest car dealers by an African- American former chief executive of an Oklahoma City Dodge dealership, charging collusion and breach of contract to deprive him of ownership and management of the dealership.

The lawsuit was filed Wednesday morning in the Oklahoma County District Court in Oklahoma City by Jimmie Hines, a veteran automobile industry executive who served as president and general manager of Edmond Dodge in Oklahoma City from March 1992 to March 1996.

Named as defendants in the lawsuit were: Chrysler; Robert E. Howard, an Oklahoma City businessman who owns numerous car dealerships; and Mary Frost, a Caucasian Oklahoma City resident who had filed two federal lawsuits against Chrysler for reverse discrimination, seeking to obtain the position held by Hines.

At a news conference held Wednesday at the Oklahoma City Medallion Hotel, James A. Schropp of the Los Angeles-based law firm of McClain-Hill, Cornwell, Chao & Schropp, which is representing Hines, reported that the lawsuit seeks substantially in excess of $10 million in compensatory and punitive damages.

Specific causes of action for the lawsuit, he noted, included breach of contract, tortious interference with a business contract and breach of the covenant of good faith and fair dealing. Hines is also being represented by Lyle Clemens of the Oklahoma City law firm of Clemens, Holshouser & Pate.

Schropp said that the lawsuit emanates from the inappropriate termination of Hines from his position as president and general manager of Edmond Dodge by Chrysler in March 1996.

After Hines had successfully applied for the dealership under a minority-ownership program operated by Chrysler, he pointed out, Hines in March 1992 entered into an agreement with Chrysler to manage Edmond Dodge while also purchasing a portion of the dealership.

Concurrent with Hines being selected for this position, Frost filed a lawsuit in federal court against Chrysler, charging that Hines got the position instead of her because he was a minority.

The lawsuit was eventually settled, and Frost reportedly received in excess of $500,000 plus the right of first refusal if Hines vacated the position.

In the settlement, Chrysler also mandated that in the event Frost exercised her right of first refusal, she must then transfer the right to Howard, who would then purchase the dealership from Chrysler.

In November 1994, Frost filed a federal lawsuit against Chrysler and Hines for colluding to keep her from exercising her right to first refusal. Chrysler terminated Hines in March 1996 to avoid the trial.

The lawsuit alleges that the termination of Hines by Chrysler was a direct consequence of Frost's lawsuits.

It further contends that Chrysler itself hurt the dealership by cutting its inventory and that Frost and Howard had consistently undermined Hines' ability to operate the dealership through constant litigation and by spreading false rumors about the dealership's stability, its financial condition, that Hines would be leaving and that Howard would become the new owner.

Schropp emphasized that not only had Hines turned a dealership in financial trouble into a profitable one, but the dealership won several national industry awards and accolades while under his leadership.

CONTACT: Fisher & Associates Inc., Woodland Hills

Bob Fisher/Lynn Homsy, 818/593-2202