MORGAN HILL
– Bob Lynch Ford in Gilroy has filed a lawsuit to stop a Ford
dealership that has received Morgan Hill City Council approval.
MORGAN HILL – Bob Lynch Ford in Gilroy has filed a lawsuit to stop a Ford dealership that has received Morgan Hill City Council approval.
Scott Lynch, owner of Bob Lynch Ford in Gilroy, claims a second dealership so close – they are about 12 miles apart – constitutes unfair competition and that the city overstepped the bounds of legality when approving variances that would allow the development.
Morgan Hill attorney Bruce Tichinin, who represents Lynch, filed the suit July 23 in Santa Clara County Superior Court, asking the court to enforce the state’s Unfair Competition Law.
“The purpose of the Unfair Competition Law is to allow competitors in business to compete fairly,” Tichinin said.
The lawsuit is based, Tichinin said, on environmental protection (the California Environmental Quality Act), the Planning and Zoning Law and quality of life.
Named in the suit are Tim Paulus, who will operate the new dealership; the Horizon Land Co., sellers of the property on Condit Road, north of East Dunne Avenue; the Morgan Hill City Council and staff from the Community Development (Planning) Department and the Business Assistance and Housing Services Department. The suit states these individuals or groups allowed zoning amendments over the land-use variances.
City Attorney Helene Leichter said the city questions whether it is appropriate for Lynch to file such a suit.
“We are going to challenge this on the basis that (Bob Lynch Ford) has no standing to raise this lawsuit,” Leichter said. “In order to sue for these violations you have to be directly affected.”
Tichinin said the City Council, supported by its staff, has allowed the Paulus dealership to violate the law by allowing the variances.
“A variance is not permission to deviate whenever it is convenient,” Tichinin said, “but only when the characteristics of a parcel prevents the landowner from enjoying one of the rights zoning grants to all landowners in that district.”
Tichinin said there has been no statement by Paulus at any time that, without the variances, he would be prevented from using the parcel.
“This is a state standard,” Tichinin said. He gave an example where the minimum setback might be changed to allow a structure to be built on a too-small parcel.
Paulus was out of town Monday and could not be reached for comment.
Section 17200 of the state Business and Professions Code describes unfair competition as any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by Section 17500 of Part 3 of the Business and Professions Code. Section 17500 is the “truth in advertising” clause.
Leichter said she was not sure of the connection between the two code sections.
Leichter said the neighbors who live near the dealership may have had more cause for litigation.
