Domino's Pizza delivers ... a blow to franchisee tying claims

Article Abstract:

Franchisees' standing to make tying and other antitrust claims remains unsettled after Queen City Pizza, Inc. v. Domino's Pizza, Inc. The US 3d Circuit Court of Appeals upheld the federal district court's decision which distinguished the case from Kodak Co. v. Image Technical Services by the cases' differing relevant product markets. The court stated the claims were in contract and did not fall under federal antitrust law. The US Eastern District Court in Louisiana later certified a class of franchisees making federal tying claims but it can be distinguished from Queen City.

Antitrust law, Tying agreements, Tying arrangements

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The trend otherwise continues

Article Abstract:

Franchisees have been unsuccessful in several state and federal cases where they have asserted that franchisors had breached the implied covenant of good faith and fair dealing. Some cases concern franchisors selling new franchises or purchasing competing businesses in areas which the franchisees consider to be their territory but for which the franchise contracts are silent. Termination of franchise cases have resulted in the same judicial rejection of the implied covenant and assertion of express franchise contractual terms.

Good faith (Law), states

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Class actions

Article Abstract:

A US District court certified a class action in the 1996 International Dairy Queen decision, holding the case met all class action thresholds and that class treatment would the best way to adjudicate the matter. The defendants' claims concerning state law applicability and other issues precluding class treatment were discounted by the court, which instead found a predominance of common issues and that a class action was proper since the case was primarily a damages action.

Class actions (Civil procedure), Class action lawsuits, Laws, regulations and rules

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