The end of 2010 proved to be a strange time for franchisors and franchisees in court. The cases filed were some of the strangest we’ve seen…
In Servicios Azucareros de Venezuela, C.A. v. John Deere Thibodeaux, Inc., the plaintiff, a distributor of John Deere products, sued the manufacturer in federal court in Louisiana on December 1, 2010 for violations of Louisiana and Venezuela law. The defendant allegedly cut the plaintiff’s commission in half; wrongfully terminated the distribution contract, and morally damaged the majority owner of the plaintiff. This case illustrates the similarities and differences in Louisiana and Venezuela law. For example, Louisiana law allows for the termination of a dealer only with cause, whereas in Venezuela, distributorship contracts without a specific term cannot be cancelled without the consent of both parties.
In Curves International, Inc. v. Weeden, the franchisor sued the franchisee in federal court in New York on December 1, 2010 to enforce a default judgment against the franchisee that had been entered in a Texas action. More.