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FTC Files Complaint Against Wyndham Hotels for Cyber Security Breaches

October 5, 2012

By Shane D. Gosdis*

The Federal Trade Commission recently filed a complaint against Wyndham Worldwide Corporation and several of its affiliates (”Wyndham”) in the United States District Court for the District of Arizona.  The complaint alleges that Wyndham failed to maintain reasonable security systems allowing “intruders to obtain unauthorized access to the computer networks of Wyndham Hotels and Resorts, LLC, and several hotels franchised and managed by Defendants on three separate occasions in less than two years.” Continued…

Posted in Uncategorized.


Matco Lawsuit Sent to Arbitration

September 12, 2012

By Shane D. Gosdis*

Back in December, we originally posted about two Matco franchisees who filed a class action lawsuit against Matco Tools and TD Bank in the United States District Court for the District of New Jersey.

The district court recently granted Matco’s motion to stay pending arbitration.  You can see a copy of the court’s order here.   Continued…

Posted in Uncategorized.


Vegas Baby! Capriotti’s Lawsuit Against Former Franchisee Transferred to Nevada

April 26, 2012

By Shane D. Gosdis*

We first posted about Capriotti’s lawsuit back in February.  Since then it looks like the parties have briefed and/or argued Capriotti’s motion for preliminary injunction.  And it also looks like the defendant franchisee, Taylor Family Holdings, Inc. filed a motion to dismiss for lack of jurisdiction or venue.

Yesterday, the Delaware District Court denied Capriotti’s motion for preliminary injunction (without prejudice).  It also denied the franchisee’s motion to dismiss, but did grant the its motion to transfer to the District of Nevada.  Vegas baby! Continued…

Posted in Motion to Transfer, Uncategorized.

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Eighth Circuit Weighs in on Missouri Franchise Law

April 23, 2012

By Shane D. Gosdis*

The Eighth Circuit Court of Appeals recently weighed in on Missouri’s franchise law as applied to liquor supplier-wholesaler relationships.

MoBev Beverage Company (”MoBev”) is a wholesale distributor of spirits, wines, beers, juices, and sodas in Missouri.  Shelton Brothers, Inc. (”Shelton”) is a Massachusetts supplier of artisanal beers from around the world.  In 2004, MoBev and Shelton entered into an oral agreement whereby MoBev could purchase beer from Shelton.  MoBev was not required to order any particular amount of beer and Shelton was not required to supply any particular amount of beer.

MoBev placed orders with Shelton from 2006 through 2009. Continued…

Posted in Franchisee Lawsuit, Missouri Franchise Law.


Kumon Settles Litigation with Former Franchisee

April 13, 2012

By Shane D. Gosdis*

Kumon North America, Inc. (”Kumon”) recently settled a case with its former franchisee, Maria Wachtel (”Wachtel”).  Kumon franchises math and reading centers, which use a proprietary system of worksheets for particular grade levels.  In 2002, Wachtel bought a Kumon franchise in upstate New York.  After her franchise agreement expired in 2009, Wachtel continued to operate her center in cooperation with Kumon.  In October 2010, the parties executed a five year renewal agreement for the franchise.

Less than one year later, however, Kumon issued a termination notice to Wachtel.   Continued…

Posted in Breach of Contract, Covenant of Good Faith and Fair Dealing, Franchisee Lawsuit, Royalty Fees, Settlement Agreement, Termination.

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