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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND HERITAGE OLDSMOBILE-IMPORTS, et al. v. VOLKSWAGEN OF AMERICA, INC. * * * * Civil No. JFM-02-3230 * * * *****

MEMORANDUM Plaintiffs, Heritage Oldsmobile-Imports, Inc. ("Heritage"), Valley Motors, Inc. ("Valley Motors"), and Russell Motor Cars, Inc. ("Russell") has filed this diversity action against Volkswagen of America, Inc. ("VW"). The action arises out of VW's decision to activate a new dealership in the Baltimore market. VW has filed a motion to dismiss. Plaintiffs' claims for breach of oral contract and fraudulent misrepresentation will be dismissed with leave to amend. Plaintiffs' remaining counts will be dismissed without leave to amend. I. Each plaintiff is an automobile dealer that sells Volkswagen automobiles and parts in the Baltimore area pursuant to a Volkswagen Dealer Agreement (the "Agreement"). Under this Agreement, the dealer assumes responsibility for the promotion and sale of Volkswagen products in the "dealer's area." (Compl., Ex. A, Art. 2 (1).) Performance is evaluated by VW based on the sale of products within the dealer's area; however, the Agreement "does not give Dealer any exclusive right to sell or service [Volkswagen products] in any area or territory." (Id.) Plaintiffs claim that in 2000 VW lobbied each of the plaintiffs to perform substantial

renovations of their premises to meet the "Marketplace Program" recently implemented by VW.1 (Compl.

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