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Massachusetts Federal Court Grants Preliminary Injunction for Noncompete Violations, Denies Injunction for Trademark Infringement

A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more

Ohio Federal Court Dismisses Perpetrator Liability Sex Trafficking Claims Against Hotel Defendants, Allows Vicarious Liability...

A federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more

FTC Sues PepsiCo for Illegal Price Discrimination Under Robinson-Patman Act

The Federal Trade Commission recently sued PepsiCo, Inc. alleging that the company engaged in illegal price discrimination by providing a large retailer with unfair pricing advantages in violation of the Robinson-Patman Act....more

Minnesota Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Noncompete and Lanham Act Violations by...

A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more

Virginia Federal Court Rules It has Subject Matter Jurisdiction Over DTSA Claim Because Foreign Bankruptcy Proceeding Only Stayed...

A federal court in Virginia recently ruled that it had federal question subject matter jurisdiction over a Defend Trade Secrets Act (DTSA) claim, rejecting Defendants’ argument that a foreign bankruptcy proceeding stayed the...more

Illinois Federal Court Denies Alcohol Distributors’ Motion to Dismiss Online Competitor’s Complaint for Alleged Violations of...

An Illinois federal court recently denied a motion by Southern Glazer Wine and Spirits, LLC and Republic National Distributing Company, LLC (RNDC) to dismiss various claims for violations of state and federal antitrust and...more

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more

Bankruptcy Court Grants Motion of Franchisee Debtor to Reject Franchise Agreement, Concludes Noncompete and Confidentiality...

A Michigan bankruptcy court recently granted debtor/franchisee Empower Central Michigan Inc.’s motion to reject a franchise agreement as an executory contract but found that a non-compete clause and a related confidentiality...more

After Bench Trial, Texas Federal Court Finds No Breach of Noncompete for Selling Competing Product

A federal court in Texas has denied Penthol’s claim for breach of contract against Vertex Energy for the improper sale of competing products in violation of noncompete clause. Penthol, LLC v. Vertex Energy Operating, LLC,...more

Virginia Federal Court Dismisses Franchisor's Trade Secret Claim for Failure to Plead with Specificity

A Virginia federal court recently granted a motion to dismiss all six counts of a franchisor's complaint against a competing former franchisee for failure to plead with specificity under the Defend Trade Secrets Act of 2016...more

Federal Court Vacates 2023 NLRB Joint Employment Rule And Reinstates 2020 Rule

On March 8, 2024, a Texas federal court struck down the National Labor Relations Board's new 2023 joint employer rule, which was set to go into effect on March 11, 2024. Chamber of Commerce of the United States of America, et...more

Tennessee Federal Court Enforces Delegation Provision and Compels Dozens of Franchisees to Arbitration

A federal court in Tennessee recently granted a franchisor’s motion to compel arbitration, including as to questions of arbitrability, in response to a 15 count complaint brought by 54 separate franchisees. Anthony v. Van...more

First Circuit Certifies Second Employee Misclassification Question to Massachusetts Supreme Court in Ongoing 7-Eleven Case

The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee...more

North Carolina Federal Court Rules That Franchise Agreement’s 1-Year Statute of Limitations Clause Barred Action Against...

A federal court in North Carolina recently dismissed a complaint brought by Bigelow Corporation against its franchisor Hound Town USA because the claims were time barred. Bigelow Corporation v. Hounds Town USA, LLC, 2023 WL...more

Louisiana Federal Court Dismisses Tesla’s Challenge to Ban on Direct Automobile Sales

A Louisiana Federal court recently dismissed a complaint brought by Tesla against the Louisiana Automobile Dealers Association (LADA) and other associated dealerships and commissioners for various competition and...more

Michigan Federal Court Grants Motion to Dismiss for Lack of Personal Jurisdiction and Forum Non Conveniens

A federal court in Michigan granted a motion to dismiss claims that franchisor Bateel International, LLC had violated the Michigan Franchise Investment Law and the Texas Business Opportunity Act. Luxury Concepts, Inc. v....more

Minnesota Prohibits Certain Restrictive Covenants in Franchise Agreements

Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise...more

New York Federal Court Upholds Arbitrator’s Rejection of Choice-of-Law Provision

A federal court in New York recently upheld an arbitration award, rejecting an argument that the arbitrator had improperly applied Puerto Rico law. Conmed Corp. v. First Choice Prosthetic & Orthopedic Serv., 2023 WL 157957...more

Arizona Federal Court Declines to Enforce Noncompete Provisions Against Nonsignatories

A federal court in Arizona recently denied preliminary relief enforcing franchisees’ noncompete provisions against nonsignatories to the franchise agreement because the franchisor failed to present sufficient evidence that...more

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