Addressing the threat of punitive damages claims in franchise and dealer litigation

Article Abstract:

It is possible to avoid punitive damages claims in franchise litigation with adequate planning beforehand. Many franchise laws do not include punitive damages and those that do require a substantial burden of proof. That is why punitive damages claims often fail. Such claims can often be prevented by adequate communication, by keeping the franchise holder's contract case in contract law, by making a motion to strike prayer for punitive damages or by bifurcating punitive damages proceedings.

Limitation of damages, Limitations of damages

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The FTC Act and the franchise disclosure rule in Nieman v. Dryclean U.S.A. Franchise Company

Article Abstract:

The 11th Circuit's pending ruling in Nieman v. Dryclean U.S.A. Franchise Co. on the issue of exterritoriality in international franchising is discussed. The case deals with the requirement in the FTC franchise rule that sellers disclose specific information about franchises offered for sale.The court must decide whether the rule applies to franchise sales in foreign countries.

Exterritoriality, Extraterritoriality

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Litigating the "monstrous heresy": punitive damage in franchise disputes

Article Abstract:

The author discusses standards that courts have set for judging the constitutionality of punitive damages claims. He also reviews defenses against punitive damages claims in franchise disputes.

Management, Due process of law, Defense (Civil procedure)

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