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

Mealey's Franchise

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.
May 10, 2022
EEOC, Subway Franchisee Settle Disability Bias Complaint For $30,000

PHOENIX — A federal judge in Arizona on May 9 approved a consent decree between the Equal Employment Opportunity Commission and a Subway franchisee under which the employer will pay $30,000 and provide other relief, including training, to end a complaint alleging failure to accommodate an employee with autism.
May 09, 2022
1st Circuit Vacates Judgment For 7-Eleven In Franchisees’ Classification Lawsuit

BOSTON — A First Circuit U.S. Court of Appeals panel on April 25 vacated a trial court’s summary judgment ruling for 7-Eleven Inc. in a putative class complaint by franchisees alleging misclassification and remanded for further proceedings in light of a recent ruling by the Massachusetts Supreme Court that the Massachusetts Independent Contractor Law (ICL) applies to the franchisor-franchisee relationship.
May 04, 2022
$23M Class Settlement Will End 3 Independent Contractor Class, Collective Suits

BANGOR, Maine — A federal judge in Maine issued a corrected order on May 3 granting final approval of a class settlement of just over $23 million ending three complaints accusing Flowers Foods and some of its subsidiaries of misclassifying independent distributors as independent contractors.
April 26, 2022
Employee, Employer In Pandemic Leave Denial Case Stipulate Dismissal

ROANOKE, Va. — An employee who sued his employer after unsuccessfully seeking leave during the coronavirus pandemic to care for his disabled brother on April 10 filed along with the defendant in a federal court in Virginia a stipulation of dismissal with prejudice.
April 26, 2022
Panel Affirms NLRB’s Approval Of Agreements With No Joint Employment Decision

WASHINGTON, D.C. — A divided District of Columbia Circuit U.S. Court of Appeals panel on April 22 ruled that the National Labor Relations Board did not abuse its discretion when it approved multiple settlement agreements with McDonald’s USA and franchisees involving claims of retaliating against workers involved in a nationwide organizing campaign without determining whether McDonald’s is a joint employer with its franchisees.
April 20, 2022
$1.5M McDonald’s Franchisee Class Harassment Settlement Preliminarily Approved

DETROIT — A federal judge in Michigan on April 5 preliminarily approved a $1.5 million settlement in a lawsuit by a class of female employees of a McDonald’s franchisee who claim that they were repeatedly physically and verbally harassed by a manager.