LAYTON — When Homer Cutrubus first heard the news from attorneys, it took him a few minutes to process it.
Cutrubus' sister-in-law, Christine Sorensen, had a different reaction. Sorensen couldn't wait to get on the intercom and announce to employees that after a year of being a used-car dealership, Cutrubus Motors was once again part of the Chrysler family.
"There was hugs and cheering, and music started playing," said Sorensen, who manages the Layton dealerships.
The family-owned business, which was started in the early 1960s through the hard work of brothers Homer and Phidia Cutrubus, became a Chrysler dealer in 1969. For the past 40 years, Cutrubus Motors had been building and expanding until it had three franchises with Chrysler, Jeep and Dodge sales.
When Chrysler Corp. went bankrupt in 2009, the Auburn Hills, Mich., carmaker announced that 789 car dealerships — including Cutrubus Motors in Layton — would be stripped of their rights to sell Chrysler vehicles.
A bill passed by Congress allowed dealers to dispute the decision, and after seven days of arbitration, the Layton dealership Tuesday became the first in Utah and second nationwide to win arbitration.
"Our phones rang off the hook (Tuesday) as customers, employees and business associates called to say, 'That's so fantastic you guys prevailed,' " said Homer Cutrubus' son, Kord Cutrubus, who manages the Kia store, Rocky Mountain Rides, in Riverdale.
Attorneys heard the news Tuesday and immediately called members of the Cutrubus family to congratulate them on being able to continue their 40-year legacy.
Andrew Deiss, attorney with Jones Waldo Holbrook & McDonough, which represented Cutrubus in the arbitration, said the initial termination of Cutrubus Motors as a Chrysler Jeep Dodge dealership was a threat to the legacy of the Layton dealerships and would have caused a "significant loss" to the community.
"The loss of Cutrubus would've been a challenge to Layton, to its tax base and to the vendors for Cutrubus Motors," Deiss told the Deseret News. "The absence would have been greatly felt."
Jewel Lee Kenley, owner and dealer principal at Kenley Ford, said the loss affected how much traffic went through Layton, which creates problems for all businesses — not just Cutrubus Motors.
"It impacted us greatly," Kenley said. "The city's tax base was affected greatly. First of all, because of the recession, the city already took a hit, and then losing three franchises. With three less franchises, people are less likely to get off the freeway."
However, Chrysler Corp. disagrees with the decision.
"While difficult, the actions to reduce Chrysler's dealer network were a necessary part of Chrysler Group's viability and central to the financing and partnership with Fiat," the company said in a prepared statement. "The only alternative would have been complete liquidation, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs and defaulting on taxpayer loans."
Nonetheless, the company will be issuing a letter of intent giving the Layton dealership permission to start selling Chrysler vehicles again, something they haven't been able to do since the termination notice on May 13, 2009.
Cutrubus Motors, which Homer and Phidia Cutrubus say started as a small used-car dealership, is the pride and joy of the family. The two brothers started working as car dealers when the business run by their father closed down.
"We had the opportunity to go into the used-car business in Ogden in 1964," Homer Cutrubus said, and from there they kept expanding until they had businesses in Ogden, Layton and Riverdale.
On the brink of the 2009 announcement of termination, the five-star Layton dealership had just committed to spend millions to meet Chrysler standards.
"It's inherently wrong, and to do it to a dealer like the Cutrubus Motors in Layton was more than wrong," Kenley said. "They were a good community member. It hurt a lot of people, right down on the front porch of America."
Cutrubus Motors annually contributes to the high schools in Davis County, city events and helps sponsor the Thunderbirds when they arrive at Hill Air Force Base.
The Layton dealership plans to hold a barbecue to celebrate the victory and may be able to hire back some employees once they implement the change and figure out costs.
"It's just one of the most satisfying days since we opened up the first store," Phidia Cutrubus said.
e-mail: lgroves@desnews.com