Sid Dillon Chevrolet-Oldsmobile-Pontiac, Inc. v. Sullivan

Morton Sullivan (defendant) took his Chevrolet Suburban to dealerships owned by Sid Dillon Chevrolet-Oldsmobile-Pontiac, Inc. (Dillon) (defendant) for repairs. Sullivan was dissatisfied with the repairs and upset that they were not covered by warranty. General Motors disputed Sullivan’s warranty claim because the problem was caused by installing aftermarket equipment. Sullivan sent Dillon a letter demanding that Dillon give Sullivan a new Suburban, or Sullivan threatened to put Dillon out of business, becoming Dillon’s “worst nightmare.” Sullivan then used mass mailing and automatic telephone dialing to issue announcements and news releases disparaging Dillon’s dealerships. Dillon filed an equity petition alleging defamation and violations of the Uniform Deceptive Trade Practices Act (UDTPA), seeking damages and injunctive relief. The trial court granted a temporary restraining order enjoining Sullivan or his business from uttering any word that damaged Dillon’s business. Sullivan violated the order repeatedly. The court found Sullivan in contempt and fined him $25,000 and ordered attorney’s fees of $5,000 for the permanent injunction and $1,000 for the contempt hearing. The court found Sullivan had violated the UDTPA and issued a permanent injunction. Because Sullivan did not violate the injunction for a one-year period, the contempt fine was purged. Sullivan appealed.