The United States Supreme Court recently reversed a decision of the Ninth Circuit Court of Appeals that held lower courts may dismiss a case when a party requests a stay pending arbitration. Smith v. Spizzirri, 144 S. Ct. 1173 (2024).
A federal court in New York recently ruled that an interim arbitration order was final and granted a developer’s petition to confirm the order which required the franchisor to make payments to the developer while the arbitration was ongoing. Subway Franchise Sys. of Canada, ULC v. Subway Devs. 2000, Inc., 2024 WL 3090480 (S.D.N.Y. June 21, 2024).
A federal court in California recently granted a franchisor’s motion to dismiss a class action suit alleging discrimination in violation of the Americans with Disabilities Act (ADA). Garland v. Dunkin’ Donuts, LLC, 2024 WL 2808653 (N.D. Cal. May 31, 2024).
The Michigan Court of Appeals recently affirmed a trial court’s dismissal of certain claims by franchisees Red Fit, LLC and Cali Red, LLC against franchisor Red Effect International Franchise, LLC based on a release of liability and an untimely witness list disclosure. Red Fit, LLC v. Red Effect Int’l Franchise, LLC, 2024 WL 2790504 (Mich. Ct. App. May 30, 2024).
A federal court in California granted two motions to dismiss for failure to state a claim in an action asserting discrimination and tortious interference claims against Volvo Car USA and its franchisee Haron Motor Sales, Inc. Prieto Automotive, Inc., v. Volvo Car USA, LLC, 2024 WL 3011170 (E.D. Cal. June 14, 2024).
A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to compete. Renters Warehouse USA, LLC v. Life Property Managers, LLC, No. 27-CV-24-5837 (Minn. Dist. Ct. June 12, 2024).
A federal court in California recently granted a motion brought by a franchisor and two of its employees to compel arbitration and dismiss an action alleging violations of the California Franchise Investment Law, breach of the implied covenant of good faith and fair dealing, and misrepresentation. Singh v. Batteries Plus, LLC, 2024 WL 2132525 (E.D. Cal. May 13, 2024).
A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach of guaranty by RSE’s guarantor for failure to pay certain royalties and fees. 360 Painting, LLC v. R. Sterling Enter., Inc., 2024 WL 2113035 (N.D. Ill. May 10, 2024).
A federal court in North Carolina denied a hotel franchisor’s motion to dismiss a customer’s breach of contract claim. Brittian v. Extended Stay America, 2024 WL 1841600 (W.D. N.C. Apr. 26, 2024).
A federal court in Colorado denied WD Ventures, LLC’s motion to dismiss for forum non conveniens pursuant to the forum selection clause in the parties’ franchise agreement indicating that the parties contemplated federal litigation in Colorado. Old Chicago II Franchising, LLC v. WD Ventures, LLC, 2024 WL 1911221 (D. Colo. May. 1, 2024).
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The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP.
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