Avis Franchisee Awarded $16 Million In Damages

BusinessWeek:

After seven years of legal wrangling with conglomerate Cendant Corporation, a jury has awarded Robert C. Halcro, a franchisee of Avis Rent A Car System, $16 million in damages.
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A judge had previously ruled that the Avis franchisor had “unequivocally” breached its agency settlement agreement with Halcro’s company Alaska Rent A Car, when it acquired and continued to operate competitor Budget Rent A Car. He stated that the only issue to be determined was whether Alaska Rent A Car had been damaged, and if so in what amount.

On October 1, 2009, after two hours of deliberation, the jury awarded damages to the 50-year veteran franchisee declaring:
We, the jury, based upon the preponderance of the evidence, unanimously find the following verdict on the damages suffered by Alaska Rent-A-Car Inc., as the proximate result of the breach by Avis Budget Group, Inc. and Avis Budget Car Rental, LLC in the following amount: $16 million.

In hearing the verdict, Halcro said, “We won big. This goes to the core of the American franchise system. Big franchisors shouldn’t be able to get away with what they are trying to do in going against the small franchise operator.” He said he felt fortunate that he had the money to battle in court, that most small business people don’t have the resources. “I spent almost $7 million fighting this franchisor, but I don’t care. I came into the world with nothing, my family is okay financially, so to hell with them. I’ll march on.”

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