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Arbitration and Alternative Dispute Resolution

Mulcahy LLP has significant experience in commercial arbitration, representing manufacturers, suppliers, franchisors, distributors, franchisees, associations and individuals in a wide range of disputes arising out of transactions, investments, trade and other commercial activities in the United States. We have extensive experience arbitrating disputes in a wide range of industries and economic sectors, including motor vehicle, quick service restaurant (QSR’s), beer distribution, health care franchises, real estate franchises, business services distribution, home service franchises, food distribution, cleaning franchises, pet franchises, tutoring franchises, farm equipment distribution, health and fitness franchises, senior care franchises, tobacco distribution, restaurant franchises, DVD, video & gaming franchises, entertainment franchises, printer, copying & sign franchises, security franchises, mailing & shipping franchises, and vending franchises, among others. Our practice places particular emphasis on intellectual property licensing, trademark and copyright infringement, theft of trade secrets, franchise and distribution, and antitrust and unfair competition.

We are involved in all aspects of commercial arbitration, including drafting arbitration agreements, advising on best practices and strategy in structuring dispute resolution processes, representing clients in disputes, and going to court to confirm and enforce arbitral awards.

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  Can Franchisors Recover Their Fees for Compelling Abritration?

  California Courts Appear To Answer This Question In The Negative. Over the summer, the California Second District Court of Appeal (in Roberts v. Packard, Packard & Johnson) and the California First District Court of Appeal rejected requests for attorney’s fees...

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  Does Arbitration Make Sense For Franchisors? A Litigator’s Perspective

  Why do franchisors and their attorneys treat arbitration provisions as a one-size-fits-all addition to franchise agreements?

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  Dispute Resolution: Protecting the Franchisor

  Keep your brand out of costly lawsuits. Despite the best intentions and bona fide efforts of reasonable clients, not every lawsuit is avoidable. Certainly not in these litigious times. Franchisors must be prepared to defend their companies wisely, tenaciously, and efficiently.

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  Franchisors Beware: Ninth Circuit Case Gets Tested

  In April 2007, a Los Angeles County Superior Court judge examined the reasoning in the Ninth Circuit’s 2006 opinion in Nagrampa v. MailCoups. Cold Stone confirms that California courts will be examining alternative dispute resolution clauses in franchise agreements more closely than in other states.

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  Nagrampa Sets the Standard for California Arbitration Agreements in Franchise Contracts

  In Nagrampa v. MailCoups, Inc. the Ninth Circuit considered a challenge by a franchisee to the enforceability of the arbitration provision contained in her franchise agreement. To the surprise of many, the court agreed with the franchisee and voided the entire provision as “unconscionable.”

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  IAG v. SANDERS

  “Mulcahy LLP took a very serious claim against us and completely turned the tables,” said It’s A Grind CEO Steve Shoeman. “We could not be happier with the result.”

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  Mulcahy LLP Secures Arbitration Victory for Leading Franchisor

  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.

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  Mustard Franchise Corporation V. Yek, Inc

  A recent arbitration proceeding litigated by Mulcahy LLP demonstrates the value of proactive arbitration in helping a franchisor terminate a difficult franchisee. As a result of arbitration, the delicatessen franchisor was granted the right to terminate the franchisee’s franchise agreement and to obtain possession of the franchisee’s restaurant.

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  Philly Foods, Inc. (dba Philly's Best) v. Cheesesteaks of Southern California, Inc.

  (AAA, Orange County, 2012), Mulcahy LLP recently secured a favorable award on behalf of its client, the franchisor, in an enforcement action against a franchisee for breach of the franchise agreement.

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  Shaw v. Iowa Grain Co., Kanz v. U.S. Futures and First Options Co., and Sussman v. Refco, Inc.

  (National Futures Association, Chicago) the firm arbitrated claims brought before the NFA alleging unauthorized trading, failure to liquidate open positions, and failure to supervise broker activity in customer accounts.

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  Vallochia v. Cinque Amici LLC

  (Orange County Superior Court; Judicate West, Orange County) the firm defended against claims brought by a member of an LLC against the LLC regarding the ownership of a popular restaurant and the rights and duties of the members of the LLC.

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  Budget Blinds, Inc. v. Lyle Hayman et. al.

  (AAA, Orange County, California and United States District Court, Central District of California, September 2009), Mulcahy LLP was retained to file a demand for arbitration against defendants, former franchisees, as a result of their operation of a competing window covering business in violation of their franchise agreement.

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  Meyers v. Conehead Investments, Inc.

  In Meyers v. Conehead Investments, Inc. (Los Angeles County Superior Court) the firm represented a Cold Stone Creamery franchise and prevailed on a cutting edge question regarding the enforceability of an arbitration provision in a franchise agreement.

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  Using The Doctrine Of Direct Benefits Estoppel To Enforce An Arbitration Agreement Against A Non-Signatory To A Franchise Agreement.

  In Everett v. Paul Davis Restoration, Inc., 2014 U.S. App. LEXIS 21059 (November 3, 2014), the Court of Appeals for the Seventh Circuit was asked to review a district court’s finding that a non-signatory wife was not bound by an arbitration provision in the franchise agreement signed by her husband.

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  Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348 (2014), petition for cert. filed, No. 14-341 (September 22, 2014)

  The United States Supreme Court has recently been asked to again weigh in on whether the Federal Arbitration Act (“FAA”) preempts a state law restricting the enforcement of terms in an arbitration agreement.

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  California State Bar Franchise Law Committee - Case Report – September 2015

  Fourth Circuit Refuses To Address Federal Preemption Of State Statute Limiting The Terms Of The Parties’ Agreement To Arbitrate

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  Does Michigan Law Provide A Blueprint For California To Revise Its Franchise Relations Act To Avoid Out-Of-State Arbitration Forums?

  Section 20040.5 of the California Franchise Relations Act was enacted by the California legislature to keep disputes involving California franchisees in the State by voiding out-of-state forum selection clauses in franchise agreements. This statutory contractual limitation reflects California’s strong public policy to protect in-state franchisees from the expense, inconvenience, and possible prejudice of having to litigate in a non-California venue.

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  Excessive Arbitration Fees Not Enough To Allow Franchisee To Avoid Arbitration

  Last week, the California Northern District Court denied a franchisee’s request for a temporary restraining order – asking the court to enjoin the franchisor from arbitrating the parties’ dispute – because the franchisee’s anticipated injuries were limited to the substantial sums of money he would have to pay the American Arbitration Association, the arbitrator and others defending the arbitration. The court found that these expenses would not subject the franchisee to irreparable harm as is required for a TRO to issue.

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  Booster Juice cases before the American Arbitration Association

  Mulcahy LLP attorneys recently tried to conclusion three separate arbitrations on behalf of former Booster Juice Regional Developers against franchisor Booster Juice LLP.

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  Closet Tailors, LLC v. Gary Neil Poisson

  In Closet Tailors, LLC v. Gary Neil Poisson (JAMS, Orange County, January 2010), a former multi-unit licensee was in violation of his license agreements for: (1) failing to pay monies due to the licensor; (2) violating the noncompetition provision of the license agreements; and (3) failing to comply with the post termination provisions of the license agreements.

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  Concord Foods, Inc. v. Vistar Corporation, et al.

  Our lawyers initiated an action to protect the client's proprietary trade secrets and customer lists from being misappropriated by a competitor. The case was pending before the American Arbitration Association in Los Angeles, California.

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  Eagle Rider v. Eagle Rider Harley Rental of San Antonio

  (AAA, Los Angeles) the firm defended against a franchisee’s claim that his franchise was wrongfully terminated. The firm obtained a judgment in favor of the franchisor after a week-long arbitration hearing.

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  Fanfare Investments v. FS Concepts

  (AAA, Los Angeles) the firm defended the regional franchisor for Fantastic Sams hair salons in Hawaii against the claims of a franchisee who alleged fraud and violation of the California Franchise Investment Law.

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  Franchamps, LLC, et al. v. Play N Trade Franchise, Inc.

  Mulcahy LLP represents the franchisor against regional developers and a franchisee for claims of fraud and violation of the California Franchise Investment Laws, Florida Franchise Act and Florida Unfair Business Pracitices Act.

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  Gregor v. Pacific Brokerage Services, Toro v. Bosworth, ...

  The firm arbitrated claims brought before the NASD alleging registration, fiduciary duty, and disclosure violations, among other claims, in connection with the offering and sale of financial products.

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  Hartmann-Lausanne, Inc. v. Hemocue

  (Orange County Superior Court; JAMS Orange County) the firm tried the claims of a Texas distributor of medical products for unpaid post-termination commissions against the U.S. subsidiary of the Swedish manufacturer of the products.

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  IAG Coffee Franchise LLC v. Sanders

  (AAA, Orange County, September 2008), It’s A Grind (“IAG”) coffeehouse franchisor terminated a franchisee’s franchise agreement for breaching the agreement. In response, the franchisee filed a lawsuit in Placer County Superior Court alleging fraud, violations of the California Franchise Investment Law, and price fixing in violation of the Cartwright Act.

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  Mesri v. Home Franchise Concepts, Inc., et al.

  Mulcahy LLP represented franchisor Home Franchise Concepts, Inc. against a disgruntled former employee asserting statutory claims for religious discrimination, race discrimination and wrongful termination.

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  Mustard Franchise Corporation v. YEK, Inc.

  (AAA, Orange County, March 2008), Mustard Franchise Corporation retained Mulcahy LLP for assistance in terminating a franchisee’s agreement for its violation of the terms of its franchise agreement.

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