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Mealey's Franchise

  • 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.

  • July 02, 2024

    Visa, Mastercard Credit Card Fee Class Settlement Denied Approval By Federal Judge

    BROOKLYN, N.Y. — A federal judge in New York denied preliminary approval of a class settlement in a nearly two-decade-long case over credit card interchange fees, opining that final approval of the agreement between the equitable relief class of merchants and Visa and Mastercard is unlikely based on concerns with the proposed relief for the class.

  • July 02, 2024

    Split 8th Circuit Reinstates Manager’s Claims From Firing After Diabetic Episode

    ST. PAUL, Minn. — A fast food restaurant manager may proceed with her disability bias and Family and Medical Leave Act (FMLA) lawsuit, a split Eighth Circuit U.S. Court of Appeals panel ruled July 1, opining in part that a jury may conclude that the manager’s diabetic episode that caused her to miss work for two days without notice “was not independent from her firing” that followed.

  • June 25, 2024

    German Real Estate Company Set To Settle Commissions Conspiracy Class Claims

    KANSAS CITY, Mo. — Proceedings in one of a number of class complaints by home sellers over commissions were stayed by a federal judge in Missouri as they pertain to a German real estate company and its American subsidiary following a notice of pending settlement.

  • June 21, 2024

    Golden Corral Employees File Consolidated Complaint Over 2023 Data Breach

    RALEIGH, N.C. — One month after six lawsuits against Golden Corral Corp. were consolidated in North Carolina federal court, a group of its present and former employees on June 20 filed a consolidated complaint alleging that the restaurant chain acted negligently by not properly protecting their personally identifiable information (PII) from a data breach that they assert could have been avoided if the company had employed proper security measures.

  • June 14, 2024

    N.J. Panel Affirms Ruling In Favor Of Insurer In Suit Brought By Spa Franchise

    TRENTON, N.J. — A New Jersey appeals panel on June 13 affirmed a lower court’s grant of summary judgment in favor of a professional liability insurer in a spa franchise insured’s lawsuit seeking coverage for underlying claims that one of its employees perpetuated a sexual act against one of its former customers, concluding that there is no coverage owed because the insured had knowledge about the sexual act before the effective policy date.

  • June 05, 2024

    Objector Appeals Approval Of Commissions Settlements With 3 Real Estate Franchises

    KANSAS CITY, Mo. — A notice of appeal was filed in a federal court in Missouri by a settlement class member and named plaintiff in two other lawsuits after three class settlements were approved totaling $208.5 million between home sellers and three of the real estate franchises found by a jury to have conspired to artificially inflate the cost of commissions in residential real estate transactions.