Mealey's Franchise : Mealey's : Legal News & Analysis

Mealey's Franchise

October 31, 2022
Jury Awards Fast-Food Worker Class, Plaintiffs More Than $5.3M On Wage Claims

PORTLAND, Ore. — A federal jury in Oregon issued a verdict for a class of fast-food workers bringing various wage claims, awarding the class more than $5.3 million on a claim of improper deductions of the Worker’s Benefit Fund (WBF) assessment and thousands in penalty wages for class members who received a late final paycheck after their restaurant was transferred to a franchise operator.
October 24, 2022
Class Settlement Approval Denied In Calif. Wage Case After Class Claims Dismissed

LOS ANGELES — Preliminary approval of a $375,000 class settlement can’t be provided after the lead plaintiff voluntarily dismissed his proposed class claims approximately a year ago, a federal judge in California ruled in a wage-and-hour case brought by an employee against Marriott International Inc.
October 17, 2022
U.S. High Court Vacates, Remands Domino’s Truck Drivers’ Suit Due To Saxon

WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 17 granted a petition for a writ of certiorari filed by Domino’s Pizza LLC in a case by truck drivers who allege that because the products they transport originate from out of state, they are exempt from the Federal Arbitration Act (FAA) under Section 1 as transportation workers engaged in interstate commerce and remanded to the Ninth Circuit U.S. Court of Appeals for further consideration in light of the ruling in Southwest Airlines Co. v. Saxon.
October 11, 2022
Stay Pending Settlement Granted In Chick-fil-A Delivery Prices Class Suit

SACRAMENTO, Calif. — A federal judge in California stayed a putative class complaint accusing Chick-fil-A Inc. of offering free or low-price delivery while actually charging “hidden fees” by increasing food prices for delivery orders after the parties filed a joint stipulation to stay pending settlement; the joint stipulation was filed the same day the judge denied the fast food company’s request to seal the second amended class complaint.
September 29, 2022
Summary Judgment Ruling For 7-Eleven Issued In Franchise Class Dispute

BOSTON — A federal judge in Massachusetts on Sept. 28 allowed summary judgment in favor of 7-Eleven Inc. in a five-year-long putative class dispute over the classification of franchisees, opining in part that “the mere fact that the parties share economic interest does not imply that [the franchisees] perform services for 7-Eleven.”
September 27, 2022
Florida Jury Finds For Burger King Franchisee In Drive-Through Trip And Fall Case

Jury says plaintiff was an invitee but restaurant did not negligently maintain premises
September 14, 2022
Washington Panel Upholds Arbitration Denial In Domino’s Driver’s Wage Suit

SEATTLE — A Washington appellate panel in an opinion issued Aug. 15 and published Sept. 12 affirmed a trial court’s denial of arbitration in a putative class complaint by a Domino’s Pizza LLC driver alleging wage violations, finding that the delivery and service driver was a transportation worker engaged in interstate commerce and that the arbitration agreement’s class action waiver was “unconscionable.”
September 14, 2022
4th Circuit Refuses To Rehear Golden Corral Franchisor’s COVID-19 Coverage Suit

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Sept. 9 denied a petition for rehearing filed by Golden Corral Corp. and Golden Corral Franchising Systems, refusing to disturb its Aug. 11 ruling that affirmed the lower court’s dismissal of the plaintiffs’ bad faith lawsuit seeking coverage for their financial losses arising from the suspension of their restaurant operations in response to the government orders prompted by the coronavirus pandemic.
September 12, 2022
Domino’s Truck Drivers Tell U.S. High Court They Qualify For FAA Exemption

WASHINGTON, D.C. — There is no dispute in any federal circuits that Domino’s Pizza LLC truck drivers transport products that originate from out of state and are thus exempt from the Federal Arbitration Act (FAA) under Section 1 as transportation workers engaged in interstate commerce, the drivers argue in their brief filed Sept. 8 in the U.S. Supreme Court, responding to Domino’s petition for a writ of certiorari.
September 07, 2022
Panel Rejects Outback Steakhouse Franchisee’s Appeal In Coronavirus Coverage Suit

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Sept. 2 rejected an appeal by the franchisee of Outback Steakhouse restaurants in Arizona, Colorado, Nevada, New Mexico and California and its parent and affiliated companies challenging a lower court’s finding that they have failed to plausibly allege “direct physical loss of or damage to” their property to trigger coverage under the policy in a coronavirus coverage suit.
September 07, 2022
11th Circuit Reinstates Claims Challenging Burger King’s No-Hire Agreement

ATLANTA — A lawsuit by Burger King employees challenging the franchisor’s no-hire agreement with franchisees plausibly alleges violation of Section 1 of the Sherman Act, an 11th Circuit U.S. Court of Appeals panel ruled Aug. 31, likening the agreement to the National Football League (NFL) exclusive-licensing agreement in Am. Needle, Inc. v. Nat’l Football League and reversing dismissal “to the extent that it was based on the ‘concerted action’ element for a Section 1 violation.”
September 06, 2022
Divided NLRB Releases Proposed Joint-Employer Status Standard

WASHINGTON, D.C. — The National Labor Relations Board on Sept. 6 released a notice of proposed rulemaking on the joint-employer status standard that would rescind the April 2020 joint-employer rule and replace it with a rule the NLRB states would “explicitly ground the joint-employer standard in established common-law agency principles, consistent with Board precedent and guidance that the Board has received from the U.S. Court of Appeals for the DC Circuit.”
August 30, 2022
McDonald’s Franchisee Harassment $1.5M Class Settlement Approved

DETROIT — A federal judge in Michigan on Aug. 16 issued two orders granting final approval of a $1.5 million class settlement and granting the requested attorney fees, expenses and $10,000 service awards for each of the named plaintiffs in a lawsuit by female employees of a McDonald’s franchisee who allege physical and verbal harassment by a manager.
August 15, 2022
U.S. High Court Seeks Response In FAA Exemption Appeal Concerning Truck Drivers

WASHINGTON, D.C. — The U.S. Supreme Court on Aug. 10 requested a response to a petition for a writ of certiorari by Domino’s Pizza LLC asking the justices to decide whether truck drivers making in-state deliveries are exempt from the Federal Arbitration Act (FAA) under Section 1 as transportation workers engaged in interstate commerce.
August 12, 2022
4th Circuit Rejects Golden Corral Franchisor’s Appeal In Coronavirus Coverage Suit

RICHMOND, Va. — Finding “no reversible error,” the Fourth Circuit U.S. Court of Appeals on Aug. 11 affirmed a lower federal court’s grant of an insurer’s motion for judgment on the pleadings and dismissal of Golden Corral Corp. and Golden Corral Franchising Systems’ bad faith lawsuit seeking coverage for their financial losses arising from the suspension of their restaurant operations in response to the government orders prompted by the coronavirus pandemic.
August 03, 2022
$1.5 Million Pizza Delivery Drivers’ Expenses Class Settlement Approved

DAYTON, Ohio — A $1.5 million class settlement in a lawsuit accusing a pizza shop franchisee and others of improper reimbursement for delivery drivers’ vehicle expenses was granted final approval by a federal judge in Ohio on Aug. 2.
August 02, 2022
Remaining Plaintiff In Subway Tuna Content Class Suit Files Amended Complaint

OAKLAND, Calif. — The remaining lead plaintiff accusing a sandwich franchisor in a putative class complaint of labeling its tuna salad, sandwiches and wraps as “100% tuna” while failing to prevent adulteration filed an amended class complaint on July 28 in a federal court in California.
August 02, 2022
Following Bench Trial, Florida Federal Judge Says Trademark Not Abandoned

MIAMI — A federal judge in Florida on July 31 awarded a franchisor $271,250 in connection with allegations that a franchisee continued to use the “Navaka” trademark after an implied license between the parties was rescinded.
July 26, 2022
Domino’s, Blind Patron Settle ADA Inaccessibility Suit Over Website, App

LOS ANGELES — Following a second notice of settlement filed by Domino’s Pizza LLC and a blind customer that sued for violation of the Americans with Disability Act (ADA), a California federal judge on June 21 granted the parties’ motion to dismiss with prejudice the long-running suit over website accessibility.
July 12, 2022
1 Of 2 Named Plaintiffs In Subway Tuna Content Class Suit Dismissed With Prejudice

OAKLAND, Calif. — Claims by one of two plaintiffs accusing a sandwich franchisor in a putative class complaint of violating California’s unfair competition law (UCL) and other state laws by labeling its tuna salad, sandwiches and wraps as “100% tuna” while failing to prevent adulteration and “encouraging mixing or allowing non-tuna ingredients to make their way into the Tuna Products” were dismissed with prejudice on July 8 by a federal judge in California, who determined that the plaintiff failed to allege that she ever purchased the items in question or was harmed in any way.
July 01, 2022
New England McDonald’s Franchisee Will Pay $1.6M To Settle EEOC Harassment Suit

BURLINGTON, Vt. — A Vermont-based McDonald’s franchisee that operates 10 restaurants in two states will pay $1.6 million and provide other relief to end a lawsuit by the Equal Employment Opportunity Commission alleging that a class of employees was sexually harassed by one location’s night shift manager, after a federal judge in Vermont filed a text-only order on June 30 approving a consent decree between the parties.
July 01, 2022
Former Hotel Operators Will Pay $370,000 To Settle EEOC Claims Of Groping Manager

SEATTLE — A federal judge in Washington issued an order on June 28 approving a consent decree under which two hotels operators will pay $370,000 to settle claims by the Equal Employment Opportunity Commission that they permitted a male manager to sexually harass two female housekeepers.
June 30, 2022
Pizza Delivery Driver Seeks Approval Of $1.5M Expenses Class Settlement

DAYTON, Ohio — A pizza delivery driver who sued a pizza shop franchisee and others for improper reimbursement of vehicle expenses filed a motion on June 23 in a federal court in Ohio seeking final approval of a $1.5 million class settlement.
June 24, 2022
Domino’s Asks U.S. High Court To Decide If Delivery Drivers Are Exempt Under FAA

WASHINGTON, D.C. — Domino’s Pizza LLC filed a petition for a writ of certiorari with the U.S. Supreme Court on June 15 after being granted a one-month extension and asked the justices to decide whether pizza delivery drivers making in-state deliveries are exempt from the Federal Arbitration Act (FAA) under Section 1 as transportation workers engaged in interstate commerce.
June 15, 2022
Final Approval Of $1.5M McDonald’s Franchisee Class Harassment Settlement Sought

DETROIT — Female employees of a McDonald’s franchisee who allege physical and verbal harassment by a manager filed a motion on June 6 in a federal court in Michigan seeking final approval of a $1.5 million class settlement, and their counsel moved the same day for attorney fees, expenses and $10,000 service awards for each of the named plaintiffs.