Menu
Blog Banner Image

The Franchise Memorandum

Plaintiff Successfully Pleads a "Place of Business" in New Jersey

In Ocean City Express Co., Inc. v. Atlas Van Lines, Inc., 2014 U.S. Dist. LEXIS 127231 (D.N.J. Sept. 11, 2014), the United States District Court for New Jersey denied Atlas' motion to dismiss the New Jersey Franchise Practices Act (NJFPA) claim because the amended complaint adequately pled the "place of business" element. The court found the complaint sufficient to establish the agent's office constituted a "place of business" under the NJFPA because it was more than merely an office, warehouse, storage facility, residence, or distribution center. As pleaded, it was an actual sales location where sales personnel worked, corresponded with customers, and assisted walk-in customers. It was also the retail address used in advertisements and the location at which the agent displayed Atlas' signage and distributed marketing materials.

Atlas also sought dismissal on the grounds that the Federal Aviation Administration Authorization Act (FAAAA) preempted the application of the NJFPA to the termination of the parties' relationship. The court explained that the FAAAA may preempt if state law imposes a significant impact on "carrier rates, routes, or services" related to the transportation of property, but Atlas failed to provide support for its contention that the NJFPA's good cause requirement for termination had any such an impact.

Email LinkedIn Twitter Facebook

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

Topics

Archives

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

Blog Authors