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Pence Holdings, Inc. v. Auto Center, Inc.

Citations: 454 S.E.2d 732; 19 Va. App. 703; 1995 Va. App. LEXIS 234Docket: Record No. 0007-94-2

Court: Court of Appeals of Virginia; February 21, 1995; Virginia; State Appellate Court

Narrative Opinion Summary

Pence Holdings, Inc. (Pence) contested the decision of the Department of Motor Vehicles (DMV) denying a hearing under Code 46.2-1569(4) regarding Chrysler Corporation's proposal to relocate Southside Dodge within the market area of Pence's dealership. Chrysler's plan to move Southside Dodge to Mechanicsville, Virginia, prompted Pence to request a hearing, arguing the relocation could harm its dealership. However, the DMV determined that the relocation was within the existing dealership's area and more than ten miles from any other dealer of the same line make, thus not warranting a hearing. Pence appealed to the circuit court, asserting that the transaction was a creation of a new franchise, but the court found Pence estopped from raising this issue, as it was not presented during the DMV proceedings. The circuit court, acting in a review capacity, upheld the DMV’s classification of the transaction as a relocation, concluding sufficient evidence supported the DMV’s decision, and affirmed the judgment. Consequently, Pence's appeal was denied, maintaining the DMV's original determination.

Legal Issues Addressed

Estoppel from Raising New Issues on Appeal

Application: The court held that Pence Holdings was estopped from introducing the argument that the transaction constituted a new franchise because this issue was not raised during the DMV proceedings.

Reasoning: The trial court found that this issue had not been raised during the DMV proceedings and held that Pence was estopped from introducing it later. The court noted that Pence had consistently characterized the transaction as a relocation, thus precluding him from arguing otherwise on appeal.

Review Role of Circuit Court in Administrative Appeals

Application: The circuit court acted in the capacity of an appellate court, reviewing only the record from the DMV proceedings without re-examining new evidence or arguments.

Reasoning: The circuit court's role was likened to that of an appellate court, examining only the agency's record.

Right to a Hearing under Code 46.2-1569(4)

Application: The principle was applied to determine that Pence Holdings, Inc. was not entitled to a hearing regarding the dealership relocation as it was more than ten miles from any other dealer of the same line make.

Reasoning: The DMV informed Pence that the planned relocation was within the existing dealership's area of responsibility and more than ten miles from any other dealer of the same line make, thus precluding a full hearing under Code 46.2-1569(4)(i).