Franchisee’s Counsel’s ‘Scorched- Earth Tactics’ Trigger Liability For Court Costs

(January 17, 2018, 2:51 PM EST) -- CHICAGO — Finding that a former franchisee is unwilling to pay a franchisor’s attorney fees as a matter of contract in a dispute over a $7.7 million arbitration award, the Seventh Circuit U.S. Court of Appeals on Jan. 12 ordered the franchisee to pay all fees as a sanction for “unnecessary and pointless litigation” and ordered the franchisee’s attorneys to show cause why they should not be held jointly and severally responsible for the fees under 28 U.S. Code §1927 (Hyatt Franchising, L.L.C. v. Shen Zhen New World I, LLC, et al., No. 17-2071, 7th Cir., 2018 U.S. App. LEXIS 813)....

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