Judge Enjoins Franchisor From Arbitrating Claims In Ohio, Dismisses UCL Claim

Mealey's (March 16, 2020, 11:41 AM EDT) -- SAN DIEGO — A federal judge in California on March 12 entered a preliminary injunction barring arbitration proceedings in a federal court in Ohio between Matco Tools Corp. and two franchisees who complain that they are being wrongfully treated as independent contractors as opposed to employees, finding that the plaintiffs presented sufficient evidence of the likelihood of success on their argument that provisions in a distribution agreement between the parties may render it unenforceable (Emanuel Aguilera, et al. v. Matco Tools Corp., No. 19-01576, S.D. Calif., 2020 U.S. Dist. LEXIS 43283)....