Briefcase

Former Chrysler dealers sue feds over closures

WASHINGTON – A group of car dealers who lost their businesses in Chrysler’s 2009 bankruptcy sued the government Thursday, claiming their dealer franchises were closed without adequate compensation.

The 64 former Chrysler dealers said in the lawsuit that the Treasury Department violated their constitutional rights by failing to compensate them for taking their auto businesses. They alleged damages of at least $130 million.

Lawyers for the dealers said the closures prevented a “significant disruption” in the U.S. auto industry and economy but said “this is a loss that should not, however, be borne by a few individual auto dealers but … must in fairness and justice by borne by the public as a whole.”

The Treasury Department declined comment on the lawsuit, which was filed in the U.S. Court of Federal Claims.

Chrysler closed 789 auto dealers, or about one quarter of its dealer network, in its June 2009 bankruptcy. The closings of Chrysler and General Motors dealerships were among a broad number of concessions given by dealers, workers, retirees and others to make the companies viable in the government-led auto bankruptcies.

Associated Press

Consumer prices rise

WASHINGTON – Consumers paid more in January for everything from food and gas to airline tickets and clothing. The price increases reflect creeping but still-modest inflation.

The Consumer Price Index rose 0.4 percent last month, matching December’s increase, the Labor Department said Thursday.

Core prices, which exclude volatile food and energy costs, rose 0.2 percent. That’s the largest monthly increase in more than a year. Over the past 12 months, core prices have increased 1 percent.

Food prices climbed 0.5 percent in January, the most in more than two years.

In another report, the Conference Board’s index of leading economic indicators gauge of future economic activity rose a slim 0.1 percent in January, significantly slower than in recent months as a measure of the housing market tumbled.

Associated Press

Nordstrom net income rises

Nordstrom’s net income rose 35 percent to $232 million, or $1.04 per share. That compares with $172 million, or 77 cents per share, a year earlier. Its quarterly revenue rose more than 10 percent to $2.92 billion.

Nordstrom is benefiting from the rebound of the luxury shopper who is willing to pay full price for clothing. But its off-price chain Nordstrom Rack also did better in the fourth quarter.

Associated Press

Idaho faces nurse shortage

Boise – Hospitals in Idaho are struggling to find enough nurses trained in specialties to fill staffing needs.

St. Luke’s Health System Spokesman Ken Dey tells the Idaho Business Review the Boise-based hospital system is boosting hiring after a stagnant 2009 and looking to fill more than 100 positions.

State Labor Department analysts say enrollment in nursing education remains steady. Last year, nearly 500 more adults than expected entered nursing training programs, boosting total enrollment to more than 2,800.

Associated Press