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IN RE CLAREMONT ACQUISITION CORP., INC.

Nos. CV 95-3248 MRP, CV 95-3891 MRP. Bankruptcy Nos. LA 94-52638-KM, LA 94-52627-KM, LA 94-52635-KM, LA 94-52637-KM, LA 94-52639-KM and LA 94-52642-KM.

186 B.R. 977 (1995)

In re CLAREMONT ACQUISITION CORPORATION, INC.; Claremont Pontiac/GMC Truck, Inc.; Claremont Ford, Inc.; Claremont Cadillac, Inc.; Claremont Isuzu, Inc.; and Claremont Hyundai, Inc., Debtors. FORD MOTOR COMPANY and General Motors Corp., Appellants, v. CLAREMONT ACQUISITION CORPORATION, INC.; Claremont Pontiac/GMC Truck, Inc.; Claremont Ford, Inc.; Claremont Cadillac, Inc.; Claremont Isuzu, Inc.; and Claremont Hyundai, Inc.; Cal Worthington and Worthington Dodge, Inc.; and General Electric Capital Corporation, Appellees.

United States District Court, C.D. California.

September 7, 1995.

Attorney(s) appearing for the Case

Michael S. Kogan, Arter & Hadden, Los Angeles, CA, for debtors.

Wallace M. Allan, O'Melveny & Myers, Los Angeles, CA, for General Motors Corp.

Kimberly S. Winick, Mayer, Brown & Platt, Los Angeles, CA, Keith A. Langley, Dallas, TX, for Ford Motor Company.

James J. Joseph, Danning, Gill, Diamond & Kollitz, Los Angeles, CA, for Sidney G. (Jack) Head and Louis Frahm, Lessor of Acura Store.

Bruce L. Ishimatsu, Bryan Cave, Los Angeles, CA, for American Isuzu Motors, Inc.

Gregory Bray, Murphy, Weir & Butler, Los Angeles, CA, for G.E. Capital.

Adam H. Bloomenstein, Hyundai Motor America, Fountain Valley, CA, for Hyundai Motor America.

John C. Tobin, Best, Best & Krieger, Riverside, CA, for City of Claremont and City of Claremont Redevelopment Agency.

Gary E. Klausner, Robinson, Diamant, Brill & Klausner, Los Angeles, CA, for Cal Worthington and Worthington Dodge, Inc.

OPINION

PFAELZER, District Judge.

Ford Motor Company ("Ford") and General Motors Company ("GM") appeal an order of the bankruptcy court compelling GM and Ford to accept assignment of Debtors' franchise agreements to Worthington Dodge, Inc. ("Worthington Dodge") which is owned by Cal Worthington ("Worthington"). The questions presented by these appeals are: (1) whether the bankruptcy court erred in applying California Vehicle Code § 11713.3(e) to the...

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