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

Mealey's Franchise

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.
June 07, 2022
Panel: No Coverage For Planet Fitness Franchisees’ Losses Arising From Coronavirus

ATLANTA — The 11th Circuit U.S. Court of Appeals on June 2 affirmed a lower federal court’s grant of judgment on the pleadings in favor of a commercial property insurer in a coronavirus coverage dispute, finding that the losses incurred by the owners and operators of four Florida Planet Fitness franchise locations did not constitute “direct physical loss of or damage to” their property.
June 01, 2022
DOJ, McDonald’s Franchisee Reach Agreement To End Immigration-Related Bias Claims

WASHINGTON, D.C. — The U.S. Department of Justice (DOJ) announced May 31 that it reached a settlement agreement with a McDonald’s franchisee to resolve claims that the operator of four California restaurants discriminated against non-U.S. citizens when demanding unnecessary documentation.
May 27, 2022
Massage Envy Coupon Settlement Granted Final Approval After 9th Circuit CAFA Ruling

SAN FRANCISCO — A previous award of $2.6 million in attorney fees following a class settlement by a massage and skin care franchisor accused of violating its membership agreement by periodically increasing membership fees was reduced to $938,026.22 in May 24 order by a federal judge in California following a ruling by a Ninth Circuit U.S. Court of Appeals the settlement was a coupon settlement under the Class Action Fairness Act (CAFA); the judge deferred the award of any additional fees until after the expiration of the redemption period.
May 25, 2022
Panel: No Coverage For ‘Purely Economic Damages’ Alleged By Restaurant Chain

ATLANTA — The 11th Circuit U.S. Court of Appeals on May 24 affirmed a lower federal court’s ruling that an insured restaurant chain’s claim for loss of business income caused by shutdown orders issued by state governors in the wake of the COVID-19 pandemic is not covered, finding that there is no coverage available “for the type of purely economic damages” the insured sought under the policy.
May 23, 2022
California Federal Judge Denies Injunction In ‘Pinkberry’ Franchise Row

LOS ANGELES — Despite finding that a franchisor demonstrates some likelihood of success on allegations that a former franchisee continues to infringe the “Pinkberry” trademark, a federal judge in California on May 20 denied entry of preliminary injunctive relief in the case.
May 20, 2022
Federal Judge Permits Class Suit Over Texted Ads, Do Not Call Registry To Proceed

FORT LAUDERDALE, Fla. — Calling the Federal Communications Commission’s 2003 expansion of private right of action for violations of the Telephone Consumer Protection Act (TCPA) to include cell phones “unauthorized,” a federal judge in Florida on May 18 stated that the FCC’s rules and regulations must nonetheless be enforced and declined to dismiss a putative class complaint based on thousands of allegedly unsolicited text message ads for a sandwich shop chain sent to cell phones, some of which were on the Do Not Call (DNC) Registry.