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

Mealey's Franchise

January 11, 2024
PPP Borrower Denied Loan Forgiveness Claims Error By Court, Seeks Reconsideration

AMARILLO, Texas — In a lawsuit brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, the dealer moved a Texas federal court to alter or amend its opinion and resulting judgment granting the SBA’s cross-motion for summary judgment, contending that the court misapplied established principles of administrative law and statutory interpretation.
January 10, 2024
2nd Circuit: New York City’s Wrongful Discharge Law Isn’t Preempted By Federal Law

NEW YORK — New York City’s Wrongful Discharge Law, which protects fast-food workers from arbitrary firings and reduced hours, is not preempted by the National Labor Relations Act (NLRA) or unconstitutional, as argued by two restaurant groups, a Second Circuit U.S. Court of Appeals panel ruled, affirming a trial court decision.
January 04, 2024
P.F. Chang’s Coverage For COVID-19 Losses Limited To $1M, California Panel Affirms

LOS ANGELES — A California appeals court on Jan. 3 concluded that P.F. Chang's China Bistro Inc.’s insurance policy language “clearly and unambiguously” provided only $1 million in coverage for its losses arising from the coronavirus pandemic, affirming a lower court’s ruling granting summary adjudication in favor of the insurer.
January 03, 2024
Domino’s Truck Drivers Urge High Court Denial Of FAA Exemption Petition

WASHINGTON, D.C. — Domino’s Pizza LLC truck drivers (D&S drivers), found by the Ninth Circuit U.S. Court of Appeals to be exempt from the Federal Arbitration Act (FAA) in their class case alleging unreimbursed business expenses and violation of California’s unfair competition law, filed a response brief, after initially waiving their right and then being asked to file one, urging the U.S. Supreme Court to deny Domino’s petition for a writ of certiorari.
January 02, 2024
Trade Group, Policy Center Support McDonald’s Petition In No-Poach Dispute

WASHINGTON, D.C. — The U.S. Supreme Court should grant certiorari to a fast food franchisor seeking a ruling on the appropriate analysis for Sherman Act claims regarding intrabrand hiring restraints, a nonprofit research and policy center and a trade group argue in separate amicus curiae briefs.
December 18, 2023
Global Settlement Resolving Reinsurance Collateral Row Wins Approval

ST. LOUIS — A global settlement agreement involving limited liability companies that owned and operated dozens of Jack in the Box restaurants under franchise agreements has been approved and related requests granted in a federal bankruptcy court in Missouri.
December 13, 2023
Judge: SBA Had Authority To Determine Borrower Was Never Eligible For PPP Loan

AMARILLO, Texas — In a lawsuit brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, a Texas federal judge on Dec. 12 granted the government’s cross-motion for summary judgment and denied the dealer’s motion for summary judgment, finding that the SBA did not exceed its statutory authority or act arbitrarily or capriciously in refusing loan forgiveness based on later-determined loan eligibility.
December 06, 2023
Preliminary Approval Granted To Jan-Pro $30M Worker Classification Settlement

SAN FRANCISCO — A federal judge in California on Dec. 5 granted preliminary approval of a class settlement in a worker classification suit under which Jan-Pro Franchising International Inc. will pay $30 million and make changes to its business practices that will benefit California franchisees.
November 30, 2023
No Coverage Owed For Breach Of Franchise Agreement, Trademark Infringement Claims

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling in favor of insurers in an insured’s breach of contract and bad faith lawsuit seeking coverage for an underlying action alleging that it breached a franchise agreement and infringed on trademarks, finding that some of the underlying claims “clearly fell outside the policy's coverage” and that the policy’s intellectual property (IP) exclusion also barred coverage.
November 28, 2023
Amended Motion For Settlement Notice Filed In Papa John’s No-Poach Case

LOUISVILLE, Ky. — The lead plaintiff in a case accusing a pizza chain franchisor of violating the Sherman Act by coordinating no-poach agreements between its franchisees filed an amended motion to direct notice of settlement to the proposed class after a federal judge in Kentucky denied preliminary approval due to insufficient information regarding adequacy, typicality and predominance.
November 27, 2023
2 Real Estate Franchisors’ $138.5M Commissions Pact Granted Preliminary Approval

KANSAS CITY, Mo. — A federal judge in Missouri granted preliminary approval of a $138.5 million settlement agreement between two real estate franchisors and home sellers in two cases accusing the National Association of Realtors (NAR) and real estate franchisors of engaging in a commission conspiracy in violation of Section 1 of the Sherman Act.
November 16, 2023
With Deal Proposed In Reinsurance Collateral Row, Debtors Seek Closure Order

ST. LOUIS — Limited liability companies that owned and operated dozens of Jack in the Box restaurants under franchise agreements have asked a federal bankruptcy court in Missouri to close their jointly administered Chapter 11 cases.
November 09, 2023
U.S. High Court Seeks Response From Domino’s Drivers To FAA Exemption Petition

WASHINGTON, D.C. — The U.S. Supreme Court requested a response from Domino’s Pizza LLC truck drivers (D&S drivers) to a petition by the pizza franchise arguing that the circuit courts are split on whether local delivery drivers are engaged in interstate commerce and thus exempt from the Federal Arbitration Act (FAA).
November 09, 2023
7-Eleven Franchisees Tell Massachusetts High Court They Trigger ABC Test

BOSTON — 7-Eleven franchisees trigger the Massachusetts test for independent contractor misclassification, also known as the “ABC” test, as the franchisor’s “revenue is directly dependent on the franchisees’ work of running the stores,” five franchisees argue in a brief filed in the Massachusetts Supreme Judicial Court after a question concerning the franchisees’ contractual obligations was certified by the First Circuit U.S. Court of Appeals.
November 06, 2023
Cleaning Franchisees Seek Preliminary Approval Of $30M Classification Settlement

SAN FRANCISCO — Cleaning service franchisees who allege that they have been misclassified filed a motion in a federal court in California seeking preliminary approval of a class settlement under which Jan-Pro Franchising International Inc. will pay $30 million and make changes to its business practices that the plaintiffs state will benefit California franchisees.
October 31, 2023
Domino’s Seeks U.S. High Court Ruling On Local Delivery Drivers And FAA

WASHINGTON, D.C. — Domino’s Pizza LLC truck drivers (D&S drivers), found by the Ninth Circuit U.S. Court of Appeals to be exempt from the Federal Arbitration Act (FAA) in their class case alleging unreimbursed business expenses and violation of California’s unfair competition law, filed in the U.S. Supreme Court a waiver of their right to respond to Domino’s petition for writ of certiorari in which the pizza franchise argues that circuits are split on whether local delivery drivers are engaged in interstate commerce.
October 23, 2023
Housekeeper Files Class Suit Against DoubleTree Under Los Angeles 2022 Ordinance

LOS ANGELES — A hotel housekeeper filed a class complaint in a California court accusing her employer of violating the Los Angeles Hotel Worker Protection Ordinance; her attorneys say it’s the first case to be filed under the 2022 ordinance intended to protect hotel workers from sexual assault.
October 16, 2023
Judge Dismisses State Claims Ahead Of Trial In Real Estate Commission Class Case

KANSAS CITY, Mo. — A federal judge in Missouri on Oct. 13 dismissed two state law claims in a class case by home sellers who accuse the National Association of Realtors (NAR) and real estate franchisors of antitrust violations when it comes to commissions, leaving for trial only the claim alleging violation of Section 1 of the Sherman Act.
October 12, 2023
SBA Argues It Can Deny PPP Loan Forgiveness If Borrower Was Never Eligible For Loan

AMARILLO, Texas — In an action brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, the federal government defendants cross-moved for summary judgment while at the same filing their response to the dealer’s prior motion for summary judgment.
September 28, 2023
Trial Pushed To January After Settlement Notice Filed In Classification Case

SAN FRANCISCO — In a Sept. 27 docket entry following a status conference, the October 2023 trial date in a cleaning service franchisee classification class dispute was vacated with a note that it will be reset in January 2024 after the franchisor filed a notice that the parties reached a settlement agreement that will provide up to $30 million.
September 26, 2023
Hearing Scheduled After Settlement Notice Filed In Franchisor Classification Case

SAN FRANCISCO — A hearing was scheduled for Sept. 27 in a cleaning service franchisee classification class dispute after the franchisor filed a notice that the parties reached a settlement agreement that will provide up to $30 million; the federal judge in California stated in the order that the status of the settlement and whether to vacate the October trial date will be considered at the hearing.
September 21, 2023
Taco Bell Worker Settles Biometric Data Case After Arbitration Order

EAST ST. LOUIS, Ill. — A Taco Bell employee who alleged in a putative class complaint that workers’ biometric data is collected, used and stored in violation of state law dismissed the case with prejudice on Sept. 20 in a federal court in Illinois after filing a notice of settlement.
September 20, 2023
Federal Judge Seeks Amended Class Settlement Motion In Papa John’s No-Poach Case

LOUISVILLE, Ky. — A federal judge in Kentucky denied preliminary approval of a $5 million class settlement proposed in a case accusing a pizza chain franchisor of violating the Sherman Act by coordinating no-poach agreements between its franchisees, finding that insufficient information was supplied regarding adequacy, typicality and predominance.
September 19, 2023
RE/MAX Agrees To Settle Real Estate Commission Antitrust Class Claims For $55M

CHICAGO — Home sellers and RE/MAX LLC filed a notice of pending settlement and joint motion stay an antitrust case as to RE/MAX on Sept. 18 in a federal court in Illinois; on the same day, RE/MAX filed a Form 8-K with the U.S. Securities and Exchange Commission stating that it agreed to pay a total settlement amount of $55 million.
September 06, 2023
1st Circuit Sends 2nd Question To Mass. High Court In 7-Eleven Franchisee Case

BOSTON — A First Circuit U.S. Court of Appeals panel certified a second question to the Massachusetts Supreme Judicial Court (SJC) in a case that has been litigated for nearly six years by 7-Eleven franchisees challenging their classification as independent contractors.