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The Franchise Memorandum

The Franchise Memorandum

  • Posts by Michael L. Sturm
    Partner

    Michael has nearly three decades of experience litigating on behalf of franchisors in federal and state courts across the country and in arbitration proceedings. His experience includes virtually every type of substantive claim ...

Posted in Employment

After denying a motion to dismiss, a federal court in New Jersey has now refused to grant summary judgment to a franchisor on racial discrimination and other employment-related claims asserted by its franchisee’s employee. Ward v. Cottman Transmission Sys., LLC, 2022 WL 909637 (D.N.J. Mar. 29, 2022).

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A federal court in New Jersey refused to dismiss a counterclaim filed in violation of a contractual forum selection provision because, even though the provision was mandatory and enforceable, the plaintiff’s filing of the initial complaint waived the right to enforce it. The Indian Express Private Ltd. v. Hali, 2022 WL 154354 (D.N.J. Jan. 18, 2022).

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In a dispute between Audi and two dealers, the Third Circuit Court of Appeals affirmed the district court’s conclusion that one dealer’s obligation in a consent decree to “forever quit” its interest in purchasing an Audi dealership survived termination of the litigation and the dissolution of a preliminary injunction and was enforceable. Audi of Am., Inc. v. Bronsberg & Hughes Pontiac, Inc., No. 20-2940, 2021 WL 5320848 (3d Cir. Nov. 16, 2021) (designated as non-precedential).

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About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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