Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute
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On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015, and after the respondent initially declined to respond, the Court specifically requested a response, and conferenced the case twice, before denying the petition. This could be an indication that, without Scalia, the Court is less interested in arbitration issues, or at least less interested in those that will not garner five of the current eight votes.
The case is Chorley Enterprises Inc. v. Dickey’s Barbecue Restaurants, Inc., 807 F.3d 553 (4th Cir. 2015). [I admit that I did not blog about it when it initially came out last summer because it was complicated and messy and I was feeling lazy. But, today, I came up with a few Prince tie-ins, so I am taking it on.] Franchisees of the barbecue chain alleged the franchisor misrepresented costs and profits, and the franchisor alleged the franchisees were in breach for poor operation of the restaurants. The franchisor also demanded that the claims be arbitrated.
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