Dismissal Of Antitrust And Fraud Claims


Mulcahy LLP Secures Arbitration Victory for Leading Franchisor

By James M. Mulcahy on January 07, 2013

California Law Firm Obtains Dismissal of Antitrust and Fraud Claims and Award of Damages

Summary:

Mulcahy LLP, a leading antitrust and franchise litigation boutique in California, successfully litigated an arbitration proceeding against a franchisee on behalf of coffee house franchisor It’s A Grind. The firm secured dismissal of the franchisee’s antitrust and fraud claims, and an award of damages for the franchisor.

Irvine, California (PR Web), January 20, 2009 — Mulcahy LLP (formerly known as Mulcahy Reeves), a California law firm specializing in antitrust and franchise litigation, recently won an arbitration proceeding on behalf of It’s A Grind (“IAG”), one of America's fastest growing coffee house franchises.

After trying to help a franchisee who had been unable to find a location by identifying an existing store that was available for purchase, IAG found itself accused of fraud regarding the franchisee’s past profitability, violations of the California Franchise Investment Law, and price fixing in violation of the Cartwright Act. The franchisee claimed damages in excess of $700,000.

After being retained by IAG, the California antitrust and franchise lawyers at Mulcahy LLP immediately initiated a binding arbitration seeking damages for the franchisee’s abandonment of their business in violation of their franchise agreement, and a ruling that the franchisee’s alleged claims lacked merit.

After nine days of arbitration, the arbitrator issued a ruling (i) denying the claims asserted by the franchisee against IAG in their entirety, and (ii) ordering the franchisee to pay IAG damages for lost royalties, attorneys’ fees and costs, arbitration expenses, and filing and case service fees.

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