Legal Alerts

Handoush v. Lease Finance Group, LLC: Predispute Waivers put a Forum Selection Clause at Issue Again

Oct 31, 2019Legal AlertsCalifornia, CFIL

Executive Summary: In a reported decision, Judge Wick of the California Court of Appeal, First District, Division 3, found that the forum selection clause in a contract between plaintiff and defendant was invalid based on a predispute jury waiver. Citation: Handoush v. Lease Finance Group, LLC, 41 Cal.App.5th 729 (2019). Relevant Background: On January 21, 2016, Zeaad Handoush (“Plaintiff”) filed suit […]

Governor Signs AB5 into Law and Complicates California’s Independent Contractor Analysis

Sep 12, 2019Legal Alerts, Statute Tracking, Thought LeadershipCalifornia, Employment Law, Independent Contractor

Executive Summary Governor Newsom signs AB5 into law making it effective January 1, 2020. The law does not address many questions for the franchise industry. Franchisors and franchisees should not expect these questions to be resolved until they are before the California Supreme Court, which could be years. Analysis Only a day after the California Assembly voted to send AB5 to this desk for […]

Salazar v. McDonald’s Corp: A Much Needed Win for the Franchise Industry

Aug 5, 2019Legal AlertsCalifornia, Employment Law, Joint Employer

Executive Summary: In a reported decision, United States Court of Appeals, Ninth Circuit, held that McDonald’s corporate was not a joint employer and could not be held liable under ostensible-agency theory. This was a significant victory for the franchise industry given recent events. Citation: Salazar v. McDonald’s Corp., 944 F.3d 1024 (9th Cir. 2019). Relevant Background: The Haynes Family Limited Partnership […]

Campbell v. FAF, Inc. et al.: A Costly Lesson Related To Notice Pleading The Existence of a Franchise

Jun 20, 2019Legal AlertsCalifornia, CFIL

Executive Summary: In an unreported decision, Judge Hayes of the United States District Court for the Southern District of California decided a Motion to Transfer that defendants’ filed based on a forum selection clause in an “Independent Contractor Operating Agreement” (“Agreement”). Plaintiff argued enforcement of the forum selection clause violated public policy–as codified by the California Franchise Investment Law (“CFIL”). Defendants […]

United Studios of Self Defense v. Rinehart: Lessons in Legal Jiu-Jitsu by a Franchisor Under Attack

Feb 22, 2019Legal AlertsCalifornia, CFIL

Executive Summary: In an unreported decision, Judge Carter of the United States District Court for the Central District of California denied Plaintiff’s Motion to Strike and granted in part Plaintiff’s Motion to Dismiss certain counterclaims against it. While not entirely novel, the critical lessons from the case include just how long a State enforcement action against a franchisor can be used […]

NLRB’s Ruling on Independent Contractor Status and Implications for Labor Relations and the Franchise Industry

Jan 25, 2019Legal AlertsFederal Law, Labor Law, NLRB

Executive Summary “On review from a decision by the Acting Regional Director, the National Labor Relations Board issued an order that considered whether franchisees who operated shared-ride vans for SuperShuttle were employees covered under the National Labor Relations Act. Overruling precedent set by the Board in a case involving FedEx in 2014, the Board found that the shared ride drivers were independent […]