In Dunkin’ Donuts Franchising, LLC, v. SAI Food and Hospitality, LLC, 2013 U.S. Dist. LEXIS 359472 (E.D. Mo. Mar. 15, 2013), the United States District Court for the Eastern District of Missouri granted Dunkin’s motion to strike the franchisees’ jury demand, and their request for punitive damages and lost profits. Gray Plant Mooty represents the franchisor in this case. The court enforced the mutual jury trial waiver contained in the parties’ contracts on the basis that it was unambiguous and conspicuous. In addition, the court noted that the franchisees were experienced business people, there were no allegations of fraud, and the franchisees had the assistance of counsel in their contractual dealings.
The court also enforced franchise agreement provisions waiving punitive damages and lost future profits. Because such damages are not fundamental rights, they can be waived in commercial contracts, particularly where the waiver provisions are mutual. Accordingly, the court granted Dunkin’s motion to strike the claim for damages.
Maisa Frank represents clients in a variety of litigation matters. Whether conducting pre-dispute investigations, navigating litigation, or negotiating resolutions, Maisa’s advice and strategy is vital to clients facing ...
The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.
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.
To subscribe to monthly emails for The Franchise Memorandum, please click here.