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IN RE VAN NESS AUTO PLAZA, INC.

Bankruptcy No. 3-89-03450-TC.

120 B.R. 545 (1990)

In re VAN NESS AUTO PLAZA, INC., a California corporation, d/b/a Auto Plaza Lincoln Mercury, Auto Plaza Porsche and Auto Plaza Ferrari, Debtor.

United States Bankruptcy Court, N.D. California.

October 26, 1990.

Attorney(s) appearing for the Case

Henry Cohen, Cohen and Jacobson, Burlingame, Cal., for debtor Van Ness Auto Plaza, Inc.

James S. Monroe, Lillick & Charles, San Francisco, Cal., for Porsche Cars of North America, Inc.

Jeffrey Alan Levenberg, Law Offices of Jeffrey Alan Levenberg, San Francisco, Cal., for Ron Greenspan V.W., Inc.

OPINION

THOMAS E. CARLSON, Bankruptcy Judge.

Debtor, an automobile dealer, moved to assume and assign a Porsche franchise. California state law, applicable via 11 U.S.C. § 365(c)(1), provides that such a franchise may be assigned only with the consent of the manufacturer, but that such consent shall not unreasonably be withheld. The principal question raised in this proceeding is the legal standard upon which the reasonableness of a manufacturer's withholding...

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