Cox fights deposition of Schwartz in DMS antitrust case

A skirmish over whether Cox Automotive President Sandy Schwartz should be deposed is taking place in the antitrust battle involving CDK Global and Reynolds and Reynolds Co.

Cox is part of consolidated lawsuits that allege CDK and Reynolds have colluded to stymie competition from other dealership software providers.

As part of what could be a monthslong case in U.S. District Court for the Northern District of Illinois, the companies are gathering evidence and feuding over whether Schwartz needs to be a part of that process. Cox, of Atlanta, argues that the former newspaper publisher is too removed from the details to be relevant, while the defendants say his testimony is essential.

In 2017 Cox joined smaller dealer-tech firms such as Authenticom, Motor Vehicle Software Corp. and Superior Integrated Solutions, which had filed complaints against the two dealership management system giants.

As part of the discovery process, CDK has sought a deposition from Schwartz, arguing that he has "unique, personal knowledge regarding matters central to this lawsuit, and that information cannot be obtained through other means," according to court documents.

But Cox has asked the court to grant a protective order shielding Schwartz from any deposition request. Cox has argued that Schwartz has limited knowledge about relevant issues in the case. It says that, as its automotive arm has $7 billion in annual revenue and more than 25 brands, only a subset of its operations are part of the litigation; specifically its Retail Solutions Group and its Dealertrack DMS, which competes with CDK and Reynolds products.

Cox and CDK met Feb. 25 over the deposition of Schwartz, and were unable to reach an agreement, according to court records.

CDK asked the court to deny the protective order in a March 8 filing.

At press time, no decision had been made on the protective order. The case's discovery deadline is April 30. Attorneys for CDK and Cox could not be reached for comment.

Barring a settlement, similar to one that is in progress between Reynolds and a group of dealers that sued CDK and Reynolds separately, the case could drag on into next year, based on filing deadlines.