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

Mealey's Franchise

December 14, 2021
Black McDonald’s Franchisees Dismiss Bias, Fraud Claims Against Franchisor

CHICAGO — A federal judge in Illinois on Dec. 13 terminated a putative class complaint accusing a fast food franchisor of steering Black franchisees to Black communities where white franchisees refused to operate restaurants due to higher overhead costs and employee turnover after both sides in the case filed a joint stipulation of dismissal with prejudice on Dec. 10.
December 14, 2021
10th Circuit Affirms Franchisor Owed No Duty To Advise Franchisee’s Employee

DENVER — A franchisor has no duty under Oklahoma law to protect a franchisee’s employee by advising her how to address her allegation that the franchisee sexually harassed her, the 10th Circuit U.S. Court of Appeals ruled Dec. 8 in an unpublished order, affirming the dismissal of a negligent misrepresentation claim against the franchisor.
December 14, 2021
On Heels Of Trial Win, Liquor Wholesaler Seeks $3.4M In Attorney Fees

ST. LOUIS — In a Dec. 7 filing in Missouri federal court, a plaintiff who was recently awarded $11.75 million by jurors on its allegation that Mast-Jägermeister US Inc. (Jägermeister) violated Missouri franchise law when it terminated a distribution agreement without good cause moved for an award of $3.4 million in attorney fees, arguing that “there can be no dispute” that it is the prevailing party in the case.
December 14, 2021
Franchisor Wins Dismissal In Dispute Over Sales Of Sick Animals

CHARLESTON, S.C. — A nationwide pet store franchisor won dismissal on Dec. 6 of allegations that it enticed consumers into purchasing unhealthy pets when a federal judge in South Carolina found, among other things, that a requirement that franchisees retain the services of a local veterinarian for regular dog and cat examinations is not akin to a guarantee of animal health.
December 14, 2021
Panel: Jurisdiction Over State Law Claims Lacking In Franchise Row

ATLANTA — Just over four months after a Florida federal judge, acting in response to a limited remand by the 11th Circuit U.S. Court of Appeals, said it lacks subject matter jurisdiction over state law claims by an association of Tim Hortons franchises, the appellate court on Dec. 1 vacated and remanded the price-gouging dispute with instructions for a dismissal without prejudice.
December 13, 2021
High Court Won’t Decide Whether Dealers Are Entitled To Compensation After Bailout

WASHINGTON, D.C. — The U.S. Supreme Court on Dec. 13 declined to review the Federal Circuit U.S. Court of Appeals ruling that former Chrysler dealership franchisees failed to prove that their franchise agreements would have had a positive value but for the conditions the federal government imposed on a $4 billion bridge loan to the bankrupt automaker that required rejecting their franchise agreements.
December 10, 2021
9th Circuit: Volkswagen Salespersons’ Class Labor, Unfair Competition Claims Fail

SAN FRANCISCO — Salespeople at franchised dealerships who claimed that their business was harmed by Volkswagen’s emissions scandal failed to adequately allege that the car maker was their joint employer, the Ninth Circuit U.S. Court of Appeals affirmed Dec. 6 in an unpublished opinion.
December 10, 2021
Arbitration Award Against Russian Franchisee Is Vacated By New York Federal Judge

NEW YORK — A federal judge in New York on Dec. 8 vacated an arbitration award concerning the control of franchisee sandwich shops in Russia, concluding that the arbitrator purported to render a decision on a claim that was reserved for trial.
December 09, 2021
Summary Judgment For McDonald’s But Not Franchisee In Harassment Class Suit

DETROIT — A federal judge in Michigan on Dec. 6 issued two opinions granting summary judgment to a fast food franchisor but largely denying a partially motion for summary judgment by the franchisee in a putative class complaint by female former employees who allege that they were repeatedly physically and verbally harassed by a manager.
December 07, 2021
6th Circuit Reverses Dismissal And Stays Ford Resale Suit For Tribunal Resolution

CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Dec. 3 reversed a trial court’s dismissal of the claims remaining in a dispute involving a resale agreement between Ford Motor Co. and a company that sold Ford vehicles in the Middle East and instead granted the stay sought by Ford while the parties attempt to resolve the dispute before a tribunal, declining to adopt an absolute rule concerning a court’s discretion under the Federal Arbitration Act.
December 06, 2021
Decertification Of Shoe Deduction Class Denied In Fast Food Workers’ Suit

PORTLAND, Ore. — Less than a week after denying a renewed motion to certify a class of fast-food workers bringing various wage claims who allege in part that flaws in timekeeping systems caused improper compensation, a federal judge in Oregon on Dec. 1 declined to decertify a class of workers in the same suit on wage claims related to paycheck deductions for non-slip shoes that they were allegedly required to wear.
December 02, 2021
Class Certification Again Denied In Workers’ Wage Suit Against Jack In The Box

PORTLAND, Ore. — A federal judge in Oregon on Nov. 27 denied a renewed motion to certify a class of fast-food workers seeking wages and alleging that flaws in timekeeping systems caused improper compensation, finding that changes to the state law in 2010 meant that the named plaintiffs all last employed prior to the changes had claims that were not typical of class members with claims after the changes.
December 01, 2021
7-Eleven Tells Massachusetts High Court ABC Test Doesn’t Apply To Franchisors

BOSTON — Massachusetts’ Independent Contractor Law (ICL) doesn’t apply to franchisors subject to the Federal Trade Commission’s Franchise Rule, 7-Eleven Inc. argues in its Nov. 12 appellee brief urging the Massachusetts Supreme Judicial Court to answer “no” to a question certified by the First Circuit U.S. Court of Appeals.
November 19, 2021
$3.25M Pizza Franchisee Drivers’ Expenses Class Settlement Approved

DAYTON, Ohio — Final approval of a $3.25 million class settlement between Papa John’s franchisees and delivery drivers who brought class and collective claims seeking reimbursement for actual expenses was granted by a federal judge in Ohio on Nov. 18.
November 19, 2021
U.S. Department Of Justice, Dunkin Franchisee Settle Immigration Bias Claims

WASHINGTON, D.C. — A Maryland company that owns two Dunkin franchises will pay civil penalties and back pay to settle claims by the U.S. Department of Justice (DOJ) that it discriminated against a permanent resident due to his immigration status by not allowing him to choose which valid documentation he wished to present to show that he was allowed to work, the DOJ announced Nov. 18.
November 17, 2021
New Complaint Filed In Franchise Antitrust Suit After Class Extension Allowed

NEWARK, N.J. — Individuals who worked for a tax preparation franchisor or franchisees and allege that there is a conspiracy to suppress compensation via no-poach agreements filed an amended class complaint in a federal court in New Jersey on Nov. 1 after a federal magistrate judge issued a corrected order that day permitting the plaintiffs to extend the class period to the present.
November 17, 2021
Domino’s, Blind Patron Settle ADA, Website Accessibility Suit

LOS ANGELES — More than four months after a California federal judge ordered Domino’s Pizza LLC to make its website fully accessible to blind and visually impaired patrons, the pizza chain and a blind man who sued it for violations of the Americans with Disabilities Act (ADA) announced on Nov. 5 that they had reached a settlement in the five-year-old lawsuit.
November 16, 2021
Judge Dismisses Anytime Fitness Franchise Owners’ Coronavirus Coverage Dispute

NORFOLK, Va. — A federal judge in Virginia on Oct. 26 granted an insurer’s motion to dismiss a first amended class action complaint brought by a group of Anytime Fitness franchise owners seeking coverage for the negative impact on their business caused by the government shutdown orders in response to the coronavirus pandemic, finding that the insureds incurred “no direct or physical loss” that entitles them to recovery.
November 16, 2021
Dealers Dumped Post-Bailout Tell High Court Franchises Were Profitable

WASHINGTON, D.C. — In a Nov. 12 reply brief, several former Chrysler franchisees stand by a claim that their dispute with the federal government over its bailout of the auto industry remains an “excellent vehicle” for the U.S. Supreme Court to “examine the impact factor of the regulatory takings test” established in Penn Central Transportation Co. v. City of New York.
November 16, 2021
Plaintiff’s Online Purchase Records Not Compelled In Marriott False Advertising Row

SAN DIEGO — A request for production (RFP) by Marriott International Inc. for records pertaining to certain online purchases made by a customer suing over its online checkout practices is overbroad and not proportional to claims brought under California’s unfair competition law (UCL) and other statutes, a California federal judge ruled Nov. 1, overruling Marriott’s objection to a magistrate’s denial of its motion to compel.
November 16, 2021
Dispute Between 7-Eleven Franchisee, Franchisor Partly Dismissed In New Jersey

TRENTON, N.J. — A New Jersey federal judge on Nov. 8 dismissed breach of contract allegations by a 7-Eleven franchisee, warning the plaintiff that although it can still amend its complaint to bolster its claims against 7-Eleven Inc., it should “refrain from bringing causes of action barred as a matter of law.”
November 16, 2021
Utah Federal Judge: Franchisor Must Pay Ex-Franchisee $810,476 In Fees

SALT LAKE CITY — Competing motions for attorney fees were resolved Nov. 2 in favor of a counterclaimant by a Utah federal judge who found that Mrs. Fields Franchising LLC does not qualify as a prevailing party in its breach of contract dispute with a franchisee.
November 15, 2021
U.S. High Court Will Review Employee, Franchisee Arbitration Waiver Dispute

WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 15 granted a worker’s request to review a wage-and-hour dispute between the petitioner and a Taco Bell franchisee that the worker alleged has caused a circuit split concerning whether a party asserting arbitration waiver due to litigation conduct must show prejudice as “the continued existence of the arbitration-specific prejudice requirement has consequences beyond its effect on particular cases, undermining this Court’s authority and leaving lower courts confused about how to apply its precedents.”
November 11, 2021
Employee Denied Pandemic Leave May Proceed With FMLA Claims, Not FFCRA Ones

ROANOKE, Va. — An employee who unsuccessfully sought leave during the coronavirus pandemic to care for his disabled brother may proceed with his claims under the Family and Medical Leave Act (FMLA) but failed to show that he qualified for leave under the Families First Coronavirus Response Act (FFCRA) due to serving as an “emergency responder,” a federal judge in Virginia ruled Nov. 1.
November 09, 2021
Judge: Exclusion Of Expert Witness Dooms Injury Suit Against Chicken Restaurant

BENTON, Ill. — An Illinois federal magistrate judge on Oct. 29 found that an expert medical witness retained in a woman’s suit alleging that she was injured in a fried chicken restaurant’s bathroom did not meet the requirements set under Daubert v. Merrell Dow Pharmaceuticals Inc., granting the company’s motion to exclude and awarding summary judgment after ruling that without that testimony, the woman failed to establish her claims.