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

Mealey's Franchise

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.
November 04, 2021
2nd Circuit And Trial Court: Suit Challenging Federal Joint Employer Rule Is Moot

NEW YORK — The Second Circuit U.S. Court of Appeals on Oct. 29 dismissed as moot an appeal involving a challenge of a now-rescinded joint employer rule and vacated the trial court’s order and judgment and remanded with instructions to dismiss, which the trial court carried out that same day.
November 03, 2021
No ‘Actual Controversy’ As To Interpretation Of Direct Physical Loss Under State Law

ORLANDO, Fla. — A federal judge in Florida on Nov. 1 granted an insurer’s motion to dismiss a countercomplaint brought by the owner and operator of a network of nearly 80 restaurants throughout the country in a coronavirus coverage lawsuit, finding that the countercomplaint fails to state a claim for declaratory relief because there is no “actual controversy” as to the interpretation of “direct physical loss” pursuant to Georgia law.
November 03, 2021
High Court Questions Whether FAA Petitions Have Federal Question Jurisdiction

WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 2 heard arguments from a former employee of a financial advisory firm who contends that the Federal Arbitration Act (FAA) did not create federal question jurisdiction over her petition to vacate a domestic arbitration award in favor of her former employer.
November 02, 2021
DOL Announces Tips Dual Jobs Final Rule

WASHINGTON, D.C. — The U.S. Department of Labor (DOL) on Oct. 28 announced publication of the Tips Dual Jobs final rule, which limits the amount of time an employer may take a tip credit when a tipped worker is performing work that is not tip producing.
October 29, 2021
U.K. Supreme Court Says $6.7M Award Cannot Be Enforced Against Nonsignatory

LONDON — The Supreme Court of the United Kingdom on Oct. 26 said an International Chamber of Commerce (ICC) arbitral award for $6.7 million in damages against a Kuwaiti company due to alleged violations of restaurant franchising agreements cannot be enforced because the tribunal incorrectly applied French law in finding the arbitration agreement enforceable against the Kuwaiti company as nonsignatory.
October 27, 2021
Federal Judge Agrees That Pizza Delivery Drivers’ Expenses May Be Approximated

CINCINNATI — A federal judge in Ohio on Oct. 19 fully adopted a magistrate judge’s report and recommendation that vehicle-related expenses incurred by delivery drivers working for Domino’s Pizza franchises may be “reasonably approximated” under the Fair Labor Standards Act (FLSA.)
October 26, 2021
Government Seeks Dismissal Of Appeal In Challenge Of Joint Employer Rule

NEW YORK — The U.S. Department of Labor (DOL) filed a reply on Oct. 21 in the Second Circuit U.S. Court of Appeals supporting its motion to dismiss as moot an appeal involving a challenge of a now-rescinded joint employer rule.
October 25, 2021
Illinois Federal Judge Tosses ADA Claim Against McDonald’s Franchisor

CHICAGO — A decision by three McDonald’s franchises to serve only cars in their drive-through lanes cannot serve as the basis of a claim against McDonald’s USA LLC under the Americans with Disabilities Act (ADA) because the franchisor does not “operate” its franchises within the meaning of the statute, a federal judge in Illinois ruled Oct. 5.