In This Issue:

- Washington Federal Court Denies Motion To Hold Defendants In Contempt Of Consent Judgment For Trademark Infringement:

A federal judge in Seattle has denied a franchisor’s motion for a contempt order to enforce a consent judgment obtained against an accused trademark infringer and his company.

- Court Finds Franchisee Who Orally Assumed A Franchise Agreement Is Not Bound By The Agreement’s Arbitration Clause:

In Doctor’s Associates, Inc. v. Edison Subs, LLC, 2014 U.S. Dist. LEXIS 371(D. Conn. Jan. 3, 2014), the United States District Court for the District of Connecticut denied Subway’s motion to compel arbitration of claims arising out of a franchise agreement that Edison assumed pursuant to an oral assignment agreement.

- District Court Grants Franchisor’s Motion For Stay While Seventh Circuit Considers Application Of Federal Arbitration Act To “Non-Binding” Arbitration Clause:

A federal court in Indiana has granted a franchisor’s motion to stay proceedings in three related lawsuits pending appeal to the Seventh Circuit. Druco Rests., Inc. v. Steak n Shake Enters., 2014 U.S. Dist. LEXIS 8198 (S.D. Ind. Jan. 23, 2014).

- Licensee Whose Business Plan Denied Franchisee Status Estopped From Claiming It Was A Franchisee:

In U-Bake Rochester, LLC v. Utecht, 2014 U.S. Dist. LEXIS 7106 (D. Minn. Jan. 21, 2014), the United States District Court for the District of Minnesota recently held that a plaintiff’s prior acknowledgement that it was not a franchisee barred the plaintiff from later asserting claims under Minnesota and Wisconsin state franchise statutes.

- New Jersey Federal Court Dismisses Franchise Sales Fraud Claims Without Prejudice:

In Robinson v. Wingate Inns Int’l, Bus. Franchise Guide (CCH) ¶ 15,197 (D.N.J. Dec. 20, 2013), the court held that the owner of two hotel franchises failed to state actionable franchise sales fraud claims against franchisors Wingate and Wyndham.

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