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Mealey's Franchise

April 13, 2022
Burger King Wraps Whoppers In PFAS-Laced Paper, Man Says In Putative Class Action

SAN FRANCISCO — A plaintiff claims in a putative class action filed on April 11 in the U.S. District Court for the Northern District of California that Burger King Corp. violated California’s unfair competition law (UCL) and other statutes by fraudulently concealing from customers that the packaging for its Whopper burger is made with per- and polyfluoralkyl substances (PFAS) that he says renders the Whopper “unfit for human consumption.”
April 06, 2022
COMMENTARY: Recent Clarifications To The Federal Arbitration Act With Respect To Jurisdiction For Diversity And Motions To Confirm And Vacate

By Robert M. Hall
April 06, 2022
McDonald’s Franchisee Agrees To $1.5M Settlement In Class Harassment Suit

DETROIT — A class of female workers who sued a McDonald’s franchisee alleging that they were repeatedly physically and verbally harassed by a manager filed a motion in a federal court in Michigan on April 4 seeking preliminary approval of a $1.5 million settlement.
April 05, 2022
1st Circuit Orders Briefing Following Massachusetts High Court Franchise Ruling

BOSTON — The First Circuit U.S. Court of Appeals entered an order on April 1 for the parties in an appeal concerning the relationship between franchisors and franchisees to show cause why a trial court’s judgment should not be summarily vacated following a ruling by the Massachusetts Supreme Judicial Court holding that the state’s Independent Contractor Law (ICL) applies to such relationships.
March 31, 2022
High Court: FAA Petitions To Confirm Or Vacate Don’t Create Federal Jurisdiction

WASHINGTON, D.C. — Resolving a circuit split, the U.S. Supreme Court on March 31 ruled that the Federal Arbitration Act (FAA) does not create federal jurisdiction over petitions to confirm or vacate arbitral awards and that courts must have an “independent jurisdictional basis” for addressing such petitions, finding in favor of the former employee of a financial advisory firm and reversing the Fifth Circuit U.S. Court of Appeals.
March 28, 2022
Massachusetts High Court: Independent Contractor Law Applies To Franchisors

BOSTON — The Massachusetts Independent Contractor Law (ICL) applies to the relationship between franchisors and franchisees and does not conflict with the Federal Trade Commission’s Franchise Rule, the Massachusetts Supreme Court ruled March 24 in response to a question certified by the First Circuit U.S. Court of Appeals.
March 24, 2022
EEOC, Popeye’s Franchisee Settle Suit Over Job Offer Rescission, Bias

HAMMOND, Ind. — A federal judge in Indiana on March 22 approved a consent decree between the Equal Employment Opportunity Commission and an Indiana fast food franchisee accused of violating the Americans with Disabilities Act (ADA) when it rescinded a job offer to an individual with a cognitive disability and failed to provide the individual with the accommodation of having her job coach present during training.
March 21, 2022
U.S. Supreme Court Hears Arguments Over Franchisee’s Delayed Arbitration Request

WASHINGTON, D.C. — The U.S. Supreme Court on March 21 heard arguments in a wage-and-hour dispute between an employee and a franchisee concerning whether a franchisee’s delay in moving for arbitration until after settlement talks failed was actually a waiver.
March 17, 2022
Long John Silver’s Franchise Settles EEOC Harassment Suit For $200,000

EAST ST. LOUIS, Ill. — A federal judge in Illinois on March 16 signed a consent decree under which the operator of a Centralia, Ill., Long John Silver’s will pay $200,000 to settle sexual harassment and retaliation claims brought by the Equal Employment Opportunity Commission.
March 17, 2022
Papa John’s Franchise Settles Drivers’ Class Wage Claims For Undisclosed Amount

LONDON, Ky. — A federal judge in Kentucky on March 7 granted final approval to a collective and class settlement between a Papa John’s franchise and its delivery drivers who sued alleging that insufficient reimbursement rates caused their wages to fall below the minimum wage.
March 11, 2022
Parties Settle Coverage Suit Over Challenge To McDonald’s Handling Of COVID-19

CHICAGO — McDonald’s Corp. and a commercial general liability insurer on March 10 filed a joint notice of settlement in a breach of contract and declaratory relief lawsuit brought by McDonald’s Corp. and former and current franchise owners seeking coverage for an underlying class action injunction alleging that they are taking inadequate steps to contain COVID-19 in the workplace.
March 09, 2022
Soft-Serve Tech Company Sues McDonald’s For Unfairly Tanking Its Business

WILMINGTON, Del. — A Delaware tech company on March 1 filed a lawsuit in Delaware federal court accusing McDonalds Corp. of violating California’s unfair competition law (UCL) and other laws by fabricating false claims about safety hazards that allegedly blocked the tech company from marketing a device that improves the functioning of McDonalds’ soft-serve machines.
March 09, 2022
Citing ‘Clear Abuse Of Discretion,’ Panel Grants Mandamus In Patent Row

WASHINGTON, D.C. — A federal judge in Texas’ decision denying dismissal or transfer of patent allegations against Volkswagen Group of America Inc. and Hyundai Motor America based upon the existence of independent Volkswagen and Hyundai car dealerships in the Western District of Texas was a clear abuse of discretion, the Federal Circuit U.S. Court of Appeals ruled March 9.
March 09, 2022
McDonald’s Franchisee Will Pay More Than $30,000 To End EEOC Race Bias Suit

MILWAUKEE — The operator of nine McDonald’s locations accused of failing to hire a class of Black applicants will pay $31,137 and furnish other relief to resolve a race discrimination lawsuit brought by the Equal Employment Opportunity Commission pursuant to a consent decree approved by a federal judge in Wisconsin on Feb. 28.
March 01, 2022
Domino’s Seeks Stay Of Mandate To Pursue High Court Appeal In Expenses Suit

PASADENA, Calif. — Domino’s Pizza LLC filed an unopposed motion in the Ninth Circuit U.S. Court of Appeals on Feb. 25 to stay the issuance of mandate in a putative class complaint by truck drivers asserting violations of California’s labor and unfair competition laws pending its petition to the U.S. Supreme Court for a writ of certiorari.
February 17, 2022
Inaccessible Hotel Bed Class Claims Against Management Company Survive Dismissal

PITTSBURGH — Putative class claims accusing a hotel management company of violating the Americans with Disabilities Act (ADA) by failing to ensure that beds and sleeping surfaces in accessible rooms comply with federal requirements may proceed despite no ADA standards that address sleeping surfaces, a federal judge in Pennsylvania ruled Feb. 4, opining that the lead plaintiffs has sufficiently alleged violation of the ADA’s “general accessibility mandate.”
February 16, 2022
9th Circuit Denies Domino’s Rehearing Request In Truck Drivers’ Expenses Suit

PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel on Feb. 15 denied a petition for rehearing by Domino’s Pizza LLC after the panel affirmed a trial court’s order denying the employer’s motion to compel arbitration in a putative class complaint by truck drivers asserting violations of California’s labor and unfair competition laws.
February 16, 2022
$1.5M Settlement Preliminarily Approved In Pizza Drivers’ Reimbursement Suit

DAYTON, Ohio — A federal judge in Ohio on Feb. 9 granted preliminary approval to a $1.5 million settlement reached in a collective and class complaint by a pizza delivery driver accusing a pizza shop franchisee, her husband and her limited liability companies of improper reimbursement for vehicle expenses.
February 15, 2022
June Trial Sought In Reopened Domino’s ADA Website Accessibility Suit

LOS ANGELES — One month after Domino’s Pizza LLC and a blind man declared that their settlement negotiations had ultimately failed, despite having previously announced a possible agreement to settle claims that the pizza chain’s website is not equally accessible to visually impaired patrons, the parties jointly filed a report in California federal court on Jan. 21 stating that they had agreed on a date of June 7 for a jury trial in the reopened dispute over application of the Americans with Disability Act (ADA) in cyberspace.
February 11, 2022
Defenses, Discovery, Franchise Issues Addressed In ‘Law Tigers’ Trademark Suit

CHICAGO — Resolving multiple motions by the parties in a lawsuit over the “Law Tigers” trademark, an Illinois federal judge on Feb. 8 struck the defendant’s unclean hands affirmative defense related to purported franchise law violations, while permitting discovery and depositions on relevant topics such as the likelihood of confusion.
February 08, 2022
Providers Prevail On Aetna’s Fraud Counterclaims, But Can’t Secure Sanctions

OKLAHOMA CITY — A federal judge in Oklahoma granted emergency care providers summary judgment on counterclaims alleging that a 36% upcoding rate constituted fraud but denied their motion alleging pretrial misconduct and seeking sanctions on Jan. 17.
February 07, 2022
Taco Bell Franchisee Tells High Court A Delay In Seeking Arbitration Was Lawful

WASHINGTON, D.C. — There is no “use-it-as-expeditiously-as-feasible-or-lose-it rule” when it comes to moving for arbitration so long as there is no violation of a clear deadline or prejudice to another pursuant to the Federal Arbitration Act (FAA), a Taco Bell franchisee argues in its respondent brief filed in a wage-and-hour dispute on Feb. 4 in the U.S. Supreme Court.
January 31, 2022
Editor’s Note

The journalists and staff of Mealey’s Litigation Reports are saddened by the passing of co-founder Michael P. Mealey. He was a respected member of the newsletter community, being named publisher of the year by the National Newsletter Association and president of the National Newsletter Association. Mike and Judy Mealey started Mealey Publications Inc. in 1984. As president, Mike grew the Mealey’s Litigation Report portfolio, introduced email news bulletins and electronic CD formats and launched a continuing legal education conference business. Mealey’s was sold to LexisNexis in 2000. We hope to carry on his journalistic curiosity and integrity in the titles we continue to publish today under his name.
January 27, 2022
Insureds Ask 4th Circuit To Reverse Ruling Of No Physical Loss From COVID Shutdowns

RICHMOND, Va. — A group of Anytime Fitness franchise owners appealing from a Virginia federal district court’s dismissal of their first amended class action complaint seeking coverage for the negative impact on their business caused by government shutdown orders issued in response to the coronavirus pandemic told the Fourth Circuit U.S. Court of Appeals in their Jan. 10 opening brief that the district court misinterpreted both the provisions of the insurance policy and the applicable law.
January 25, 2022
Panel: Jurisdiction Lacking Over Stay Issued In Trademark Dispute

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on Jan. 7 refused to weigh in on the merits of a Missouri judge’s stay of federal trademark infringement allegations by a window franchisor because the stay is neither a final order nor an appealable collateral interlocutory order.