In this Issue:

Missouri District Court Awards Attorneys' Fees And Costs In Termination Case:

In Dunkin' Donuts Franchising LLC v. Sai Food (ST Hospitality, LLC, 2014 U.S. Dist. LEXIS 67512 (E.D. Mo. May 16, 2014), the United States District Court for the Eastern District of Missouri granted a franchisor's motion for attorneys' fees, costs, and expense…

Supreme Court This Week Issues Two Decisions Favoring Defendants In Patent Litigation:

Patent litigation remains a topic of discussion in franchise circles, as more and more franchisors have been named as defendants in large cases involving some element of their franchise system technology.

Eleventh Circuit Concludes That Franchisee's Kickback-Scheme Claims Were Not Barred By A One-Year Limitations Provision:

On interlocutory appeal, the Eleventh Circuit reversed in part a district court's grant of summary judgment for a franchisor on the basis that the appellant-franchisee's claims of illegal and undisclosed kickbacks were barred by the one-year contractual limitations period.

Vague Allegations Regarding Lack Of Franchisor Marketing Insufficient For Franchisee To Survive Summary Judgment:

The United States Court of Appeals for the Third Circuit recently affirmed a trial court's grant of summary judgment in favor of a hotel franchisor on its breach of contract claim, and on the franchisee's counterclaims, despite the franchisee's claims that the franchisor first breached its obligations under the franchise agreements.

Court Denies Franchisee's Motion To Dismiss Counterclaims:

In Bans Pasta, LLC v. Mirko Franchising, LLC, 2014 U.S. Dist. LEXIS 71466 (W.D. Va. May 23, 2014), a federal court in Virginia denied franchisee Bans Pasta's motion to dismiss franchisor Mirko's counterclaims for breach of contract and other claims.

Minnesota Federal Court Lacks Personal Jurisdiction Over Franchisor's Directors:

In Sanford v. Maid-Rite Corp., Civil File No. 13-2250 (D. Minn. Apr. 21, 2014), the court dismissed the plaintiffs' Minnesota Franchise Act ("MFA") claims against the defendant directors of franchisor Maid-Rite for failure to demonstrate minimum contacts necessary to establish personal jurisdiction.

Lender's Private Foreclosure Sale To Franchisor Deemed Commercially Reasonable Under California Ucc:

In Jack in the Box, Inc. v. Mehta, 2014 U.S. Dist. Lexis 68519 (N.D. Cal. May 19, 2014), the court approved the request of Jack in the Box ("JIB") to modify an existing order authorizing JIB to operate restaurants owned by previously terminated franchisees…

Federal Court In New Hampshire Finds Franchisor Did Not Forfeit Right To Arbitrate Dispute By Seeking Preliminary Injunction:

The United States District Court for the District of New Hampshire recently granted a franchisor's motion to compel arbitration, finding it had not waived its rights to arbitrate a dispute by having first sought preliminary injunctive relief.

California Adopts Electronic Franchise Filings; Caleasi Is Replaced:

The California Department of Business Oversight has announced that "Beginning at noon on June 18, 2014...

New Jersey Appellate Court Confirms Terminated Insurance Agents

Are Not In Franchise Relationship With Insurer:

A New Jersey appellate court affirmed a state trial court's ruling that terminated insurance agents were not in a franchise relationship with Allstate Insurance Company and that the New Jersey Franchise Practices Act did not apply to their termination.

New Jersey Court Rules Contract And Statute Preclude Claims:

The United States District Court for the District of New Jersey recently granted a franchisor's motion to dismiss a franchisee's counterclaims for, among other things, fraud and a breach of the New Jersey Consumer Fraud Act…

Franchisees Fail To Establish Any Element Of Rico Claim:

In Jennings v. Bonus Building Care, Inc., Bus. Franchise Guide (CCH) 9115,284 (W.D. Mo. May, 7, 2014), a federal district court dismissed a lawsuit brought by four unit franchisees under the federal Racketeer Influenced and Corrupt Organizations Act…

Please see full Issue 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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