Leo points out that the statute not only applies to eligibility, but also to the unlawful "exercise" of authority via public office. At the common law, quo warranto was not only used to challenge usurpation of office but also to challenge illegal government actions and the current quo warranto statute was written as a catch all in this regard. So Leo and Steve will bring two counts under 3501, eligibility and illegal use of Government funds. The second count refers to the use of TARP funds to facilitate the Chrysler Bankruptcy sale.Donofrio and Pidgeon also plan a third quo warranto count based upon 16-3521(2) of the quo warranto statute.
A quo warranto may be issued from the Superior Court of the District of Columbia in the name of the District of Columbia against -
...
(2) one or more persons who act as a corporation within the District of Columbia without being duly authorized, or exercise within the District of Columbia corporate rights, privileges, or franchises not granted them by law in force in the District of Columbia.
In other words, the actions taken by the government were an illegal exercise of corporate authority. The government has acted as a political agent (acting as board of directors) against corporations using taxpayer money to restructure the auto industry under their vision.
In the posting, Mr. Donofrio emphasizes that he and Mr. Pidgeon represent the best interests of the dealers, leaving open the possibility of a settlement.
If the dealers' franchises are not fully restored or a settlement agreed to by the parties, Leo will file the quo warranto.
See post #75 for an update on Donofrio’s quo warranto.