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Mealey's Franchise

  • November 15, 2024

    Magistrate Suggests Limited Injunction In Trademark Row Between Grocery Companies

    COLUMBUS, Ohio — A federal magistrate judge in Ohio recommended that a discount grocery company’s petition for a preliminary injunction in a trademark infringement suit it brought against a grocery chain operator selling its products should be granted in part, holding that some, but not all, of the products bearing the plaintiff company’s trademarks should not be sold in the story while proceedings continue.

  • November 12, 2024

    $115.5M In Real Estate Commissions Settlements Granted Preliminary, Final OK

    KANSAS CITY, Mo. — In a pair of orders issued in a consolidated class action by home sellers accusing the National Association of Realtors (NAR) and real estate franchises of conspiring to artificially inflate the cost of commissions in residential real estate transactions, a federal judge in Missouri granted preliminary approval of four settlements totaling $4,925,000 and final approval of nine settlements totaling $110.6 million.

  • November 08, 2024

    Insurers Dispute Coverage For BIPA Violation Class Action Against Taco Bell Owners

    NEW ORLEANS — Commercial general liability and umbrella insurers filed a complaint in an Illinois federal court seeking a declaratory judgment that they have no duty to defend and indemnify against an underlying class action lawsuit alleging that the owners and operators of Taco Bell restaurants in Illinois violated the state’s Biometric Information Privacy Act (BIPA).

  • October 16, 2024

    Objectors File Briefs In 3 Appeals Challenging Real Estate Commissions Settlements

    ST. LOUIS — Objectors to settlements between home sellers, The National Association of Realtors (NAR) and real estate franchises found by a jury to have conspired to artificially inflate the cost of commissions in residential real estate transactions have filed a trio of appellant briefs in the Eighth Circuit U.S. Court of Appeals.

  • October 15, 2024

    10th Circuit: Untimely Removal Of Class Wage Suit Against Wendy’s Supports Remand

    DENVER — A fast food franchisor’s removal of a wage-and-hour complaint to federal court following class certification was untimely, a 10th Circuit U.S. Court of Appeals panel ruled, opining that the company was given notice that the Class Action Fairness Act’s (CAFA) $5 million threshold was met in two letters sent months earlier demanding unpaid wages.

  • October 07, 2024

    After Mass. High Court Franchisee Ruling, 1st Circuit Affirms Dismissal Of Claims

    BOSTON — The First Circuit U.S. Court of Appeals affirmed a trial court’s dismissal of claims by 7-Eleven Inc. franchisees that they were misclassified as independent contractors rather than employees in light of a Sept. 5 ruling by the Massachusetts Supreme Judicial Court that 7-Eleven Inc. franchisees who “perform various contractual obligations under the Franchise Agreement” and provide 7-Eleven with a percentage of their gross profits do not “‘perform[] any service’ for 7-Eleven within the meaning of” Massachusetts’ independent contractor statute.

  • October 02, 2024

    Brokerages, MLSs Opt Into NAR Commission Settlement, Agree To Pay More Than $30M

    KANSAS CITY, Mo. — A federal judge in Missouri in an Oct. 1 docket entry granted a preliminary approval of more than $30 million in settlements by brokerages and non-Realtor multiple listing services (MLSs) that are opting into the National Association of Realtors’ (NAR) settlement in a real estate commission class lawsuit accusing NAR and other real estate franchises of conspiring to artificially inflate the cost of commissions in residential real estate transactions.

  • October 01, 2024

    Judge Dismisses Suit Disputing Coverage For BIPA Claims Over AI Food Phone Orders

    CHICAGO — Following receipt of a businessowners insurer’s notice of voluntary dismissal, a federal judge in Illinois dismissed the insurer’s lawsuit seeking a declaratory judgment that it owes no coverage for two underlying putative class action lawsuits alleging that its insured and two franchise restaurants violated the Illinois Biometric Information Privacy Act (BIPA) when they used the insured’s voice artificial intelligence technology to handle phone orders from customers.

  • September 18, 2024

    No Coverage Owed For Footwear Chain’s Coronavirus Losses, Illinois Panel Affirms

    CHICAGO — An Illinois appeals court panel on Sept. 17 affirmed a lower court’s grant of a commercial property insurer’s motion to dismiss the owner of retail footwear chain DSW Designer Shoe Warehouse’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses arising from the COVID-19 pandemic, finding that the policy’s “law and ordinance” and “contamination” exclusions bar coverage.

  • September 13, 2024

    Attorney Fees Judgment Stayed In Jack In The Box Workers’ Wage Suit

    PORTLAND, Ore. — A federal judge in Oregon in a docket entry granted an unopposed motion by Jack in the Box Inc. to approve a supersedeas bond and stay the enforcement of judgment for attorney fees in a wage-and-hour suit by workers pending resolution of post-trial motions and appeal.

  • September 13, 2024

    Stay Granted After NextHome Reaches Settlement In Real Estate Commissions Suit

    KANSAS CITY, Mo. — A federal judge in Missouri in a docket entry stayed the deadlines pertaining to NextHome Inc. pending a settlement with home sellers in a consolidated class complaint accusing the National Association of Realtors (NAR) and real estate franchises of conspiring to artificially inflate the cost of commissions in residential real estate transactions.

  • September 12, 2024

    8th Circuit Grants Rehearing After Reinstating Manager’s Disability Bias Claims

    ST. PAUL, Minn. — A petition for rehearing en banc was granted to the operator of a number of Hardee’s restaurants in the Midwest after a split Eighth Circuit U.S. Court of Appeals panel employed a new test for the pretext prong of the McDonnell-Douglas Corp. v. Green and reinstated a former manager’s disability bias and Family and Medical Leave Act (FMLA) claims, and the case was set for oral argument in October.

  • September 06, 2024

    Mass. High Court Answers 2nd Certified Question In 7-Eleven Franchisee Dispute

    BOSTON — Answering the second question certified by the First Circuit U.S. Court of Appeals in an employment classification case, the Massachusetts Supreme Judicial Court ruled Sept. 5 that 7-Eleven Inc. franchisees who “perform various contractual obligations under the Franchise Agreement” and provide 7-Eleven with a percentage of their gross profits do not “‘perform[] any service’ for 7-Eleven within the meaning of” Massachusetts’ independent contractor statute.

  • August 30, 2024

    Final Approval Of $10.8M Settlement Sought In Wage Suppression Case

    NEWARK, N.J. — Individuals who worked for a tax preparation franchisor or franchisees who brought a class complaint in a federal court in New Jersey alleging that there was a conspiracy to suppress compensation via no-poach agreements filed motions for final approval of a $10.8 million settlement and for approval of attorney fees, expenses and service awards.

  • August 29, 2024

    No Coverage Owed To 7-Eleven For Bodily Injury Suit, Federal Judge Rules

    MIAMI — A federal judge in Florida granted insurers’ motion for summary judgment in a 7-Eleven store’s declaratory judgment lawsuit seeking coverage for a customer’s underlying bodily injury action alleging that a 7-Eleven employee physically struck him numerous times, finding that the general liability insurance policy’s assault and battery exclusion applied and the liquor liability insurance policy is inapplicable.

  • August 27, 2024

    Convenience Store Seeks CGL Coverage For Suit Arising From Mallory Beach Death

    ATLANTA — A convenience store chain insured sued its commercial general liability insurers in a Georgia federal court for breach of contract and declaratory relief, seeking personal and advertising injury coverage for an underlying civil conspiracy and outrage/intentional infliction of emotional distress lawsuit arising from the boat crash that killed Mallory Beach.

  • August 23, 2024

    Hospitality Business Workers’ Human Trafficking Claims Settled for $730,000

    OKLAHOMA CITY — A federal magistrate judge in Oklahoma on Aug. 22 granted final approval of a $730,000 settlement between hospitality businesses based in that state and workers from the Philippines who allege that they were induced to travel to the United States to work based on false promises.

  • August 22, 2024

    Unspecified Settlement Ends Franchisee’s Suit Involving Reinsurance Commutation

    JACKSON, Miss. —  Citing an unspecified settlement reached by the remaining parties, a Mississippi federal judge dismissed a case involving a franchisee and commutation of reinsurance.

  • August 13, 2024

    HomeServices’ $250M Real Estate Commissions Settlement Granted Preliminary OK

    KANSAS CITY, Mo. — A federal judge in Missouri granted preliminary approval of a $250 million settlement to be paid by HomeServices of America Inc., BHH Affiliates LLC, Long & Foster Companies Inc. and HSF Affiliates LLC (together, HomeServices) to end claims in a real estate commission class lawsuit in a federal court in Missouri that HomeServices conspired with the National Association of Realtors and other real estate franchises to artificially inflate the cost of commissions in residential real estate transactions.

  • August 12, 2024

    Reconsideration Of Attorney Fees Denied In Jack In The Box Workers’ Wage Suit

    PORTLAND, Ore. — A federal judge in Oregon denied a motion by Jack in the Box Inc. workers to reconsider an April opinion, which partially granted and partially denied motions for attorney fees and costs by both sides in a wage-and-hour suit brought by a class of workers who saw some success with their claims, and apply a prime rate enhancement, opining that there was no showing of clear error or that the “decision was manifestly unjust.”

  • August 01, 2024

    Slide Designer Failed To Allege That Its Design Patent Was Knowingly Infringed

    SANTA ANA, Calif. — In asserting a claim for inducement of design patent infringement against a trampoline and recreational park franchisor, a slide designer failed to allege that the franchisor had actual knowledge that the slides it sold to its franchisees infringed upon the design patent at issue, a California federal judge found in granting the franchisor’s motion to dismiss without prejudice.

  • July 31, 2024

    Judge Denies Insurers’ Motion For Judgment On The Pleadings To Conserve Resources

    MIAMI — A federal judge in Florida denied insurers’ motion for judgment on the pleadings to conserve judicial resources in a 7-Eleven store’s declaratory judgment lawsuit seeking general liability and liquor liability coverage for a customer’s underlying bodily injury action alleging that a 7-Eleven employee physically struck him numerous times, finding that it is appropriate to decide only their motion for summary judgment.

  • July 29, 2024

    Court Violated Due Process In Sandwich Shop Arbitration, Canadian Company Says

    NEW YORK — A company that served as Canadian agent for the Subway sandwich shop franchise filed a motion in New York federal court to alter or amend a judge’s ruling confirming an arbitrator’s award requiring it to make ongoing payments under a terminated contract pending the outcome of a 70 million Canadian dollars arbitration, arguing that the judge did not give it a chance to respond to the arbitrators’ recent rulings.

  • July 17, 2024

    Franchisee Seeks Rehearing After Manager’s Disability Bias Claims Reinstated

    ST. PAUL, Minn. — The operator of a number of Hardee’s restaurants in the Midwest seeks a rehearing en banc after a former manager’s disability bias and Family and Medical Leave Act (FMLA) claims were reinstated by a split panel and asks for the rejection of a new test employed by the panel majority for the pretext prong of the McDonnell-Douglas Corp. v. Green framework that was referred to in the dissenting opinion as an “intertwinement test.”

  • July 10, 2024

    Insurer Disputes Coverage For BIPA Suits Over Food Phone Orders Handled By AI

    CHICAGO — A businessowners insurer filed suit in an Illinois federal court seeking a declaratory judgment that it owes no coverage for two underlying putative class action lawsuits alleging that its insured and two franchise restaurants violated the Illinois Biometric Information Privacy Act (BIPA) when they used the insured’s voice artificial intelligence technology to handle phone orders from customers.