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

Mealey's Franchise

August 30, 2023
Franchisor Seeks Emergency Stay While Appealing Ruling In Classification Class Case

SAN FRANCISCO — A cleaning service franchisor filed an emergency motion in the Ninth Circuit U.S. Court of Appeals seeking to completely stay proceedings in the trial court while it appeals denial of its motion to compel to arbitration absent class members in a misclassification case; the motion was filed one day after the trial court issued an order clarifying that the trial scheduled to commence Oct. 16 “will proceed as to all class members except the 125 and will include even the 125 if our court of appeals rules in time.”
August 28, 2023
Class Claims Over Size Of Burger King’s Burgers Partially Dismissed

MIAMI — A putative class complaint accusing Burger King Corp. of overstating the size of its Whoppers and other beef patties in advertisements was partly dismissed by a federal judge in Florida who found in part that the plaintiffs’ allegations that consumer protection laws in all 50 states and the District of Columbia were violated failed to sufficiently support each cause of action, and a nationwide Florida Deceptive and Unfair Trade Practices Act (FDUTPA) claim appeared only in their response and not in their amended complaint.
August 15, 2023
Voluntary Dismissal Of Sandwich Class Suit Granted; Subway Denied Sanctions

OAKLAND, Calif. — A federal judge in California granted a consumer’s motion, citing her pregnancy, to voluntarily dismiss her putative class complaint accusing a sandwich franchisor of deceptively labeling its tuna salad, sandwiches and wraps and denied the franchisor’s motion for sanctions in the amount of its attorney fees and costs, finding that it failed to show that they would be appropriate.
August 10, 2023
JMOL Entered For Jack In The Box On Unpaid Meal Break Claim

PORTLAND, Ore. — A federal judge in Oregon entered judgment as a matter of law (JMOL) for Jack in the Box Inc. on meal break claims and struck lost meal break wages and meal break penalty wages awarded as part of an October 2022 verdict to a class of workers bringing various wage-and-hour claims, finding that before June 1, 2010, Oregon law required employees to be paid only for the time spent working when a 30-minute meal break was cut short.
August 08, 2023
6th Circuit Reverses Arbitration Order In Papa John’s Driver’s Expenses Suit

CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel reversed a trial court’s arbitration order in a putative class and collective complaint by a pizza delivery driver alleging that he and others were denied their full vehicle-related business expenses, finding that the lower court neglected to fully explore whether the lead plaintiff himself assented to such an agreement.
July 26, 2023
After Remand, 9th Circuit Affirms Arbitration Denial In Truck Driver’s Class Case

SEATTLE — The Ninth Circuit U.S. Court of Appeals in a case remanded by the U.S. Supreme Court found that Southwest Airlines Co. v. Saxon is not “clearly irreconcilable” with Rittman v. Amazon.com, Inc. and for the second time affirmed a trial court’s denial of arbitration in a class case by Domino’s Pizza LLC truck drivers (D&S drivers) alleging unreimbursed business expenses and violation of California’s unfair competition law.
July 25, 2023
Franchise Agrees To $50,000 Payment, Providing Interpreters In EEOC Disability Suit

FORT PIERCE, Fla. — A federal judge in Florida approved an agreement between the Equal Employment Opportunity Commission and a fast-food franchise in a disability bias lawsuit under which the employer will pay $50,000 and provide American Sign Language (ASL) interpreters when requested by applicants and employees for interviews, orientations, training and performance reviews.
July 13, 2023
Customer, McDonald’s: AI Voiceprint Class Lawsuit Dismissed With Prejudice

CHICAGO — McDonald’s Corp. and a customer who alleged in a putative class lawsuit that the franchisor violates the Illinois Biometric Information Privacy Act (BIPA) by collecting voiceprints to place drive-through orders filed a stipulation of dismissal on July 12 in a federal court in Illinois.
July 13, 2023
Panel: No Employment Practices Liability Coverage Owed For Discrimination Suit

ATLANTA — The 11th Circuit U.S. Court of Appeals on July 12 affirmed a lower federal court’s summary judgment ruling in favor of an employment practices liability insurer in a multiunit franchise insured’s breach of contract lawsuit seeing seeking coverage for an underlying discrimination and retaliation action, finding that an employee’s discrimination charge constituted a “claim” pursuant to the policy and, as result, all “claims” brought by the employee are deemed to have been made prior to the policy’s inception.
July 11, 2023
Panel: Trademark Abandonment Defense Rightly Rejected By Florida Federal Judge

ATLANTA — The 11th Circuit U.S. Court of Appeals has upheld a ruling in favor of a franchisor that alleged that a former franchisee used the “Navaka” trademark after the parties’ implied license was rescinded.
June 26, 2023
Federal Judge Dismisses Dunkin’ App Pricing Class Suit On Alternative Grounds

BOSTON — A federal judge in Massachusetts granted a motion to dismiss filed by a coffee franchisor in a putative class complaint by a Massachusetts man over pricing in the company’s mobile application but based the ruling on a lack of subject matter jurisdiction rather than the arbitration requirements asserted by the defendant.
June 23, 2023
Five Guys, Franchisee’s $1.2M Wage, Hour Class Settlement Granted Final Approval

FRESNO, Calif. — A federal judge in California on June 22 approved a $1.2 million class settlement to be paid by the operator of Five Guys restaurants and Five Guys Enterprises LLC to end a complaint by employees who alleged that they were not always permitted to take meal and rest breaks, were required to continue working after clocking out, had to use personal vehicles for work without reimbursement and were subjected to background check disclosure forms that did not comply with federal and state statutes.
June 20, 2023
PPP Recipient Says SBA Exceeded Statutory Authority In Denying Loan Forgiveness

AMARILLO, Texas — In an action brought by a truck dealer against the federal government seeking forgiveness for a Paycheck Protection Program (PPP) loan, the dealer moved for summary judgment, contending that the Small Business Administration’s (SBA) decision that the dealer was not initially eligible for a PPP loan and thus ineligible for loan forgiveness exceeded and was contrary to its statutory authority.
June 15, 2023
Third-Party Complaint Is Filed In Suit Involving Reinsurance Commutation

JACKSON, Miss. — Defendants in a lawsuit involving what the plaintiff alleges was “a corporate insurance and risk management program promoted, created, and put in place by Defendants for Domino’s Pizza franchisees” have filed a third-party complaint against Domino’s Pizza LLC and related entities in a Mississippi federal court.
June 13, 2023
Taco Bell Worker Seeks Reconsideration After Biometric Data Arbitration Order

EAST ST. LOUIS, Ill. — A Taco Bell employee who alleges in a putative class complaint in a federal court in Illinois that workers’ biometric data is collected, used and stored in violation of that state’s law moved for reconsideration or clarification after an arbitration motion was granted, arguing that the court should decide rather than stay a personal jurisdiction motion and clarify whether the defendants in the case may enforce an arbitration agreement under the applicable delegation clause.
June 09, 2023
$2.35M Dickey’s Barbecue Data Breach Class Settlement Granted Final Approval

DALLAS — A federal judge in Texas granted final approval of a $2.35 million nonreversionary settlement to be paid by Dickey’s Barbecue Restaurants Inc. to end several consolidated data breach class complaints.
June 08, 2023
Preliminary Approval Given To $900,000 TGI Friday’s Snacks Labeling Settlement

CHICAGO — A federal magistrate judge in Illinois granted preliminary approval of a $900,000 settlement in a putative class complaint over TGI Friday’s licensed snack labeling claims after the lead plaintiff amended her exhibits.
June 07, 2023
7-Eleven To 1st Circuit: Trial Court Properly Found Franchisees Are Not Employees

BOSTON — Franchisees operating 7-Eleven stores were properly found to be independent contractors by a trial court, and a proposed interpretation of the threshold inquiry suggested by the franchisees fails to follow case law and guidance from the Massachusetts Supreme Judicial Court (SJC), 7-Eleven Inc. argues in an opposition brief filed in the First Circuit U.S. Court of Appeals.
May 31, 2023
Settlement Motion Amended In TGI Friday’s Licensed Snack Sticks Labeling Suit

CHICAGO — One day after a federal magistrate judge in Illinois issued a docket entry denying preliminary approval of a $900,000 settlement in a putative class complaint over snack labeling claims in order to allow the lead plaintiff to amend her motion, a notice of revised exhibits to the settlement was filed.
May 26, 2023
7th Circuit Won’t Review Class Certification In Real Estate Commission Suit

CHICAGO — A Seventh Circuit U.S. Court of Appeals panel denied a petition for permission to appeal class certification following a trial court’s ruling in an antitrust action accusing the National Association of Realtors (NAR) and seven real estate franchisors of conspiring to artificially inflate commission offers to a successful buyer-broker for property listing on a multiple listing service (MLS).
May 24, 2023
EEOC Files 2 Harassment Complaints Against Culver’s Franchisee

MINNEAPOLIS — The Equal Employment Opportunity Commission filed two complaints on May 23 in a federal court in Minnesota accusing R&G Endeavors Inc., doing business as Culver’s Restaurants of Cottage Grove, of subjecting employees to hostile work environments due to multiple forms of harassment.
May 16, 2023
TGI Friday’s, Class Seek To Settle Licensed Snack Sticks Labeling Claims

CHICAGO — A federal judge in Illinois reset a status hearing in a putative class complaint over snack labeling claims after the parties filed a joint status report stating that they’ve negotiated a settlement.
May 12, 2023
Taco Bell Worker’s Biometric Data Collection Class Suit Ordered To Arbitration

EAST ST. LOUIS, Ill. — A federal judge in Illinois granted a restaurant service group and its related entities’ motion for arbitration in a putative class complaint by a Taco Bell employee who alleges that workers’ biometric data is collected, used and stored in violation of Illinois law, finding that the employee herself argued that the signatory to the arbitration agreement, a nonparty to the suit, has an agency relationship with the defendants.
April 27, 2023
$40M Keller Williams TCPA Class Settlement Approved By Florida Judge

VERO BEACH, Fla. — Keller Williams Realty Inc. will pay $40 million and change its business practices to end a class complaint alleging that it violated the Telephone Consumer Protection Act (TCPA) and National Do Not Call Registry (DNC) requirements by placing unsolicited, prerecorded calls to consumers without their consent, according to a settlement agreement granted final approval by a Florida judge.
April 21, 2023
Oklahoma Federal Judge Enjoins Franchises From Using ‘Pizza Inn’ Mark

OKLAHOMA CITY — A dispute between a franchisor and two former franchisees over continued use of the “Pizza Inn” trademarks in connection with two Oklahoma restaurants yielded a preliminary injunction, when a federal judge said consumers would likely be confused if relief is not entered.