In this Issue:

- Eighth Circuit Denies Injunction To Stop Competition By Former Franchisee, And District Court Allows Counterclaim:

The United States Court of Appeals for the Eighth Circuit last month upheld a district court’s denial of injunctive relief for a franchisor...

- Franchisor Wins Latest Round In The Awuah Saga:

The battle continues in the case of Awuah v. Coverall North America. As regular readers of The GPMemorandum will recall, Awuah is a class action matter involving janitorial services franchisees. The lawsuit asserts that the class of franchisees should be considered to be employees, instead of as franchisees...

- Court Awards Franchisor $3.1 Million In Attorneys’ Fees Based On Contractual Fee-Shifting Provision In Franchise Agreement:

A federal court in Missouri recently granted a significant award of attorneys’ fees to a franchisor based on the contractual fee-shifting provision contained in the franchise agreement between itself and the franchisee. In Coral Group, Inc. v. Shell Oil Co., 2013 U.S. Dist. LEXIS 113219 (W.D. Mo. Aug. 12, 2013), the court agreed to award over $3.1 million in...

- Economic Loss Doctrine Bars Franchisee Tort Claims Premised On Pre-Agreement Misrepresentation:

A Wisconsin federal district court dismissed a terminated franchisee’s tort based claims premised on a pre-agreement misrepresentation by the franchisor, but refused to dismiss—for the time being—the franchisee’s...

- New Jersey Federal Court Holds That Integration Clause Bars Claims Based On Precontractual Representations:

In Joseph McSweeney Enterprises, LLC v. Mr. Softee Sales and Manufacturing, LLC, 2013 U.S. Dist. LEXIS 122279 (D.N.J. Aug. 17, 2013), the United States District Court for the District of New Jersey granted Mr. Softee and its affiliates’ motion to dismiss a franchisee’s claims for fraud, ...

- Court Issues Preliminary Injunction Against Franchisees Who Failed To Follow Promotion:

A United States District Court in Colorado last week issued a preliminary injunction against Steak ‘n Shake franchisees who were terminated for failing to honor the system’s mandatory promotional programs.

- Maryland District Court Denies Franchisee’s Earnings Claims:

In WW, LLC v. The Coffee Beanery, Ltd., 2013 U.S. Dist. LEXIS 100673 (D. Md. July 17, 2013), the United States District Court for the District of Maryland granted in part and denied in part Coffee Beanery’s motion for summary judgment...

- Court Grants Dismissal Of Discrimination Claims Against Franchisor:

A federal district court in Arizona recently held that a franchisor was not liable for Title VII claims brought by an employee of one of its franchisees. In Courtland v. GCEP- Surprise, LLC, 2013 U.S. Dist. LEXIS 105780 (D. Ariz. July 29, 2013), the plaintiff sued a franchisee...

- Court Finds New Jersey Franchise Practices Act Applies To Development Agreement And Declines To Enforce Forum Clause:

The United States District Court for the District of New Jersey recently denied a franchisor’s motion to dismiss based on an area development agreement’s forum selection clause, on the ground that the contract had created a “franchise” and controlling state law did not...

- Federal Court Remands Case To Arbitration:

A federal court in Louisiana has ruled that the arbitrator is the appropriate person to decide both substantive questions and questions of arbitrability...

- Canadian Arbitration Panel Concludes Required Software Is Part Of Franchise System:

A federal court in Louisiana has ruled that the arbitrator is the appropriate person to decide both substantive questions and questions of arbitrability under a franchise agreement requiring arbitration...

Please see full publication below for more information.

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Topics:  Attorney's Fees, Counterclaims, Franchise Agreements, Franchises, Fraud, Injunctions, Integration Clauses, Motion to Dismiss

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, Civil Remedies Updates, General Business Updates, Franchise Updates

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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