28-4456. Hearing on objection; appeal

A. If a timely objection has been filed and, if the objection is to the establishment of a new motor vehicle dealership, the objection meets both of the reasons prescribed by section 28-4454, subsection B, the director shall:

1. Enter an order fixing the time and place of a hearing on the objection. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail with return receipt requested a copy of the order to the same persons entitled to receive a copy of the notice provided for in section 28-4453.

3. Appoint a member of the Arizona state bar who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

B. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

C. At the hearing the franchisor has the burden of proof to establish that good cause exists to terminate or not renew the franchise. If there is an objection to the establishment of a new motor vehicle dealership, the administrative law judge shall determine that good cause does or does not exist to establish the proposed dealership.

D. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge's services.

E. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this article.

F. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions and enter a final order.

G. A party to the hearing before the administrative law judge may appeal pursuant to title 12, chapter 7, article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

H. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond shall not exceed the lesser of fifty thousand dollars or ten per cent of the appealing party's net worth. The party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state or bonds of the United States government.