Judge trial set for Elio Motors vs. Louisiana Motor Vehicle Commission
GRETNA, LA (KSLA) - In 2018, the three-wheel vehicle startup Elio Motors and the Louisiana Motor Vehicle Commission are set to go before a Jefferson Parish judge.
Elio Motors is seeking to overturn the charges and fines laid on them by the LMVC over the summer. According to the 24th Judicial District Court of Clerk's office in Gretna, La., attorneys for both Elio and the LMVC will appear before Judge June Barensburg at 10 a.m. on March 27, 2018.
Back on July 9, LMVC leaders accused Elio Motors of breaking state law, charging them with operating as a manufacturer/dealer of recreational products without a license.
During that meeting in Metairie, the LMVC also fined the startup $545,000.
As part of the ruling, Elio Motors was required to obtain both licenses to manufacture and deal in Louisiana and place all refundable Elio Motors reservations into a trust account within 60 days. If they failed to do that, the startup would be charged a daily fine of $5,000 until they reached compliance.
But on August 24, just a little more than two weeks before that 60-day deadline, attorneys for Elio Motors filed a petition for judicial review and request for an ex parte stay of the LMVC's ruling.
Under an ex parte stay order, the LMVC ruling would be delayed from taking effect until the judicial review is resolved.
The petition reads the LMVC's judgment "should be reversed in its entirety" because it was "in violation of constitutional and/or statutory provisions."
According to the petition, Elio Motors cannot be charged with operating as a manufacturer/dealer of recreational products without a license because they have not built any cars yet and the monetary reservations they take for their cars are just for spots in line and do not guarantee actual sales.
The petition also claims the LMVC acted with malice against Elio Motors, reading:
By imposing a penalty of $545,000, the Commission was deliberately attempting to put Elio out of business, knowing that Elio would not be able to pay such a steep fine.
LMVC members compromised on that $545,000 fine during the meeting after some originally wished to fine Elio Motors $7.5 million.
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