Ten Utah Chrysler dealers who lost their franchises as a result of the automaker's bankruptcy could have their businesses restored and be allowed to sue for damages under legislation headed to Gov. Gary Herbert's desk.

House Majority Leader Kevin Garn, R-Layton, called the auto manufacturer's decision to revoke the dealer-franchise agreements "a great tragedy" and said SB157 would help some of those who have been harmed.

"These are dealers who have invested millions and millions of dollars and were damaged by this ill-conceived plan," Garn said. "They ought to have an opportunity to recover some of that investment they've made."

The federal government has established a system of arbitration for dealers whose franchises were terminated to seek to have their business relationships restored.

Under SB157, a Utah franchisee who wins the arbitration process could have his Utah-issued franchise license restored. It also establishes a cause of action for the franchisee to sue the automaker for damages resulting from the termination.

Rep. Patrick Painter, R-Nephi, is one of those Chrysler dealers whose franchise was closed as a part of the bankruptcy. He was not on the floor to vote on the bill, but he has been closely involved in formulating the legislation.

Painter's franchise was one of 10 Chrysler ones that were closed as a part of the automaker's effort to reduce its distribution network as part of its bankruptcy restructuring.

General Motors dealers also were closed, and the bill would have applied to them as well, but GM has reinstated those franchises.

The bill passed the House 71-0 and now goes to the governor.