News & Analysis as of

Breach of Contract Contract Termination

Mayer Brown

Hong Kong Court Clarifies the Application of Implied Terms in Employment Contracts

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The recent case of Yang Zhizhong v. Nomura International (Hong Kong) Limited helpfully clarifies the applicability of Implied Term of Trust and Confidence, the Braganza duty and the Anti-avoidance Term in the context of...more

Lewitt Hackman

Franchisor 101: All-Franchisor-Can-Eat

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A federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant....more

Lewitt Hackman

Franchisor 101: Getting Away With Tax (Franchisor) Evasion

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A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s request for...more

McGuireWoods LLP

Delaware Court of Chancery Questions Enforceability of Con Ed Provisions

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So-called Con Ed provisions emerged as M&A practitioners’ response to Consolidated Edison, Inc. v. Northeast Utilities, a 2005 case in which the 2nd U.S. Circuit Court of Appeals held that stockholder plaintiffs did not have...more

King & Spalding

Saudi Arabia’s New Civil Transactions Regulation

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The Civil Transactions Regulation (the “CTR”) was promulgated on 18 June 2023 and entered into force on 16 December 2023. The CTR was conceived as one of four key reforms announced in February 2021 to enhance the general...more

Morris James LLP

Chancery Refuses to Order Specific Performance Due to Inaccurate Representations and Warranties

Morris James LLP on

Restanca, LLC v. House of Lithium, Ltd., C.A. No. 2022-0690-PAF (Del. Ch. Jun. 30, 2023) - The parties seeking specific performance of an agreement must establish a clear right to performance, including that all conditions...more

Lathrop GPM

Virginia Federal Court Denies Franchisor’s Motion for Preliminary Injunction

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A federal court in Virginia denied a franchisor’s motion for preliminary injunction against a former franchisee violating the franchise agreement’s post-termination noncompete. JTH Tax, LLC v. Younan, 2023 WL 6304865 (E.D....more

Lewitt Hackman

Franchisor 101: Liquidated Damages, 30 Minutes or Less

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A Michigan district court held a franchisee breached its obligations under its franchise agreements and upheld the liquidated damages clause in the agreements....more

Lathrop GPM

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

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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

Lathrop GPM

Michigan Federal Court Grants Summary Judgment Enforcing Franchise Agreement Termination and Awarding Liquidated Damages and...

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A federal court in Michigan granted Little Caesar Pizza Enterprises, Inc.’s motion for summary judgment seeking to enforce its termination of the franchise agreements between it and franchisee S&S Pizza Enterprises, Inc....more

Kramer Levin Naftalis & Frankel LLP

HControl Holdings v. Antin Infrastructure Partners: Terminating a Merger Agreement for Immaterial Breach (and Other Holdings)

A recent posttrial decision from Delaware regarding an alleged breach of a capitalization representation in a merger agreement is noteworthy. The decision establishes that a party is within its rights to back out of a deal...more

Lathrop GPM

Minnesota Bankruptcy Court Enjoins Franchisee’s Breach of Post-Termination Noncompete

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A Minnesota bankruptcy court granted Fantastic Sams summary judgment and enjoined a former franchisee from violating the post-termination noncompete in its franchise agreements after the franchisee rejected the agreements in...more

Lewitt Hackman

Franchisor 101: Pizza Franchisor’s Release Overcooked

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A federal district court denied a pizza franchisor’s motion to dismiss a former franchisee’s complaint, finding the former franchisee sufficiently pleaded the franchisor coerced the franchisee into signing a general release....more

Mitchell, Williams, Selig, Gates & Woodyard,...

Solid Waste Management Services: Ohio Appellate Court Addresses Whether Certain Services Constituted Grounds For Contract...

The Court of Appeals of Ohio (“Appellate Court”) addressed in a May 12th Decision and Judgment (“Decision”) an issue arising out of a solid waste and transport agreement between two counties. See Board of County...more

A&O Shearman

What is material to a material breach of contract?

A&O Shearman on

Whether or not a breach is “material” is context specific, in particular by reference to the consequences flowing from the breach. In RiverRock v Harnack the High Court found that the dissolution of a consultant was not a...more

Bradley Arant Boult Cummings LLP

No Written Notice of Delay? Big Problem! Court Sides with Contractor in Termination Dispute

Earlier this week we saw the court in Patriot Construction use the waiver doctrine to excuse a subcontractor’s failure to strictly comply with the documentation requirements of the contract. As a litigant in Illinois federal...more

Lewitt Hackman

Franchisor 101: Promises to Prospectives

Lewitt Hackman on

A federal district court in New Jersey denied Travelodge Hotels’ motion for partial summary judgment against a former franchisee, holding there are genuine issues of fact as to Travelodge’s breach of contract claims....more

Miller Nash LLP

Recession Planning: Prepare Ahead If Contract Terminated for Convenience

Miller Nash LLP on

With a recession casting a dark shadow on the new year and news of various projects being put on hold, it is a good time to revisit the checklists on what to do if your contract is terminated for convenience....more

Dunlap Bennett & Ludwig PLLC

Harrell v. Deluca: Fraud, Construction, Litigation, And The Intention To Perform

On November 7, 2022, the United States District Court for the District of Virginia decided the case of Harrell v. Deluca, 1:20-cv-00087, which centered around a home builder and contractor who failed to successfully deliver...more

Lewitt Hackman

Franchisor 101: No Repairing Delayed Filing

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A New Jersey federal court denied a franchisor’s motion for preliminary injunction against a franchisee due to franchisor’s 11 month delay in bringing the motion. Franchisee entered into two franchise agreements with H-1 Auto...more

Cooley LLP

Time to terminate? How to mitigate risk

Cooley LLP on

The coronavirus pandemic and global economic and political uncertainties mean that more businesses than ever are tied into unprofitable contracts or are required to purchase unwanted goods and services. Alternatively, they...more

Miller Canfield

Sixth Circuit: Reasonable Notice Required to Terminate a Successive Contract

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​​​​​​​The Sixth Circuit recently held that even where a supplier has a right to terminate a contract without cause, the supplier still must give the buyer reasonable notice of termination. In Stackpole International...more

A&O Shearman

Choppy waters for party seeking to invoke termination clause

A&O Shearman on

Another reminder of the importance of getting termination right. Although the notice sent talked about anticipatory repudiatory breach, in fact the breach relied on was of an express provision which required actual, rather...more

Hahn Loeser & Parks LLP

“Time is of the Essence” – or is it?

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It seems that almost every construction contract contains a clause proclaiming that “time is of the essence.” But what exactly does that clause mean? And why is it important? Or is it?...more

Whitman Legal Solutions, LLC

How Contracts End – Planning for Contract Termination and Beyond

This article discusses termination provisions parties should consider when they enter into a contract, the contract termination process, and when parties should consider post-termination obligations....more

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