In This Issue:

- Ninth Circuit Once Again Affirms $16 Million Verdict In Favor Of Licensee:

The United States Court of Appeals for the Ninth Circuit has amended a recent opinion and voted to deny rehearing en banc in Alaska Rent-A-Car, Inc. v. Avis Budget Group, Inc., 2013 U.S. App. LEXIS 12709 (9th Cir. June 19, 2013).

- Second Circuit Finds Insurance Agent Is Not A Franchisee:

Applying Connecticut law, the United States Court of Appeals for the Second Circuit held last month that an insurance agent is not protected by the state’s franchise relationship law. Garbinski v. Nationwide Mut. Ins. Co., 2013 U.S. App LEXIS 12856 (2d Cir. June 24, 2013).

- Court Dismisses Licensee’s Fraud Claim Based On Parol Evidence Rule:

In Palermo Gelato, LLC v. Pino Gelato, Inc., 2013 U.S. Dist. LEXIS 85925 (W.D. Pa. June 19, 2013), a federal court in Pennsylvania revisited its decision to dismiss the case for lack of subject matter jurisdiction. As reported in Issue 164 of The GPMemorandum...

- Court Denies Franchisee’s Motion For Injuction Against Termination:

The United States District Court for the District of Maryland has denied a franchisee’s motion for preliminary injunctive relief to prohibit the termination of its franchise agreement.

- Kentucky District Court Concludes It Lacks Personal Jurisdiction Over Guarantors To Franchisees’ Promissory Notes:

In KFC Corp. v. Wagstaff, 2013 U.S. Dist. LEXIS 86758 (W.D. Ky. June 19, 2013), a district court in Kentucky held that neither the forum selection clauses in agreements underlying a personal guarantee...

- “Unclean Hands” Defense Does Not Help Franchisee Who Continued To Accept Benefits Under It Franchise Agreement:

A federal district court in New Jersey granted summary judgment to Ramada Worldwide on several counts of a breach of contract claim against a franchisee, despite the franchisee’s equitable challenge...

- Federal Court Upholds Franchise Agreement Forum Selection Clause:

The United States District Court for the Eastern District of Pennsylvania has denied a motion to transfer filed by California franchisee defendants, finding the forum selection clause in their franchise agreement...

- Class Action Lawsuits Against Subway For Misleading Advertising Are Centralized By Judicial Panel For Multidistrict Litigation:

Seven putative class action cases against Subway Sandwich Shops, Inc. for engaging in a false or misleading advertising campaign will be centralized in the Eastern District of Wisconsin, according to a transfer order...

- Massachusetts Supreme Court Rules Modified “Right Of Control” Test Applies To Vicarious Liability Claims Against Franchisor:

In Depianti v. Jan-Pro Franchising International, Inc., 2013 Mass. Lexis 472 (Mass. June 17, 2013), the Supreme Judicial Court of Massachusetts ruled...

- Hotel Franchisor Must Stand Trial After Sickness At Franchised Unit:

A federal district court in Utah last week denied summary judgment for the defendant franchisor in a case involving a Legionnaires’ disease outbreak at a franchised hotel.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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