User:Jerem43/BKli

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Notes and addition cases for Burger King legal issues

Burger King Corp. v. Mason[edit]

(710 F.2d 1480 (11th Cir. 1983))

Mason deals with franchise relations


Implied Covenant of Good Faith and Fair Dealing[edit]

Scheck v. Burger King Corp.[edit]

(756 F. Supp. 543 (S.D. Fla. 1991))

In 1985, Host Marriott converted the Howard Johnson's restaurant at the service area on the Massachusetts Turnpike (I-90) in Lee, Massachusetts to a Burger King. This location was just 2 mi (3.2 km) from another Burger King location also in Lee just off exit 2, owned by Steven Scheck. Scheck, who had recently spent over $1 million (USD) renovating to his store, claimed that the new location was causing losses to his franchise upwards of $300,000 annually by the end of 1987. With mounting losses, Scheck filed a federal lawsuit in 1989 against Burger King claiming that the Mass Pike location had violated the franchise contract's non-compete clause and that the company had breached an implied covenant of good faith and fair dealing.[1][2]

Although Scheck's contract with BK did not grant him territorial exclusivity, the U.S. district court in 1991 issued a landmark preliminary ruling that the franchisor's express denial of an exclusive trading area "does not necessarily imply a wholly different right to Burger King -- the right to open other proximate franchises at will regardless of their effect on the plaintiff's operations."[3]

Burger King Corp. v. Weaver[edit]

(169 F.3d 1310 (1999))

In 1976, C.R. Weaver entered into a franchise agreement to open a Burger King restaurant in Great Falls, Montana, with a second in 1988. The two franchise agreements differed in geographic scope, with the 1976 contract granting territorial rights to a defined area within the city and the 1988 agreement granting no geographic exclusivity. Burger King later authorized the AAFES to open a location on Malmstrom Air Force Base in October 1989, approximately 2 mi (3.2 km) from the two Weaver locations. Claiming the Malmstrom Burger King's encroachment violated both franchise agreements, Weaver stopped making his rent, royalty, and advertising payments in November 1989.[4]

Barnes v. Burger King Corp.[edit]

(932 F. Supp. 1420, 1437-40) (S.D. Fla. 1996)

Links[edit]

Mason
Weaver
Scheck I & Scheck II

Zarco law Article on the whole mess

References[edit]

  1. ^ Scheck v. Burger King, 756 F. Supp 543 (11th Cir. 1991).
  2. ^ Lisa Holton (Jan 1998). "Mathay Inc.: BK franchisee finally seeing light at the end of a long legal struggle". Nations Restaurant News. Retrieved 2008-08-03. "The lawsuit had challenged the 1985 conversion of a Howard Johnson's restaurant into a Burger King by Marriott Corp. near Scheck's Lee, Mass., BK branch on the Massachusetts Turnpike. Scheck's attorneys argued that Burger King had violated its own franchise non-compete rules and had made an "implied covenant"..." 
  3. ^ "BK pays $4 million to settle landmark franchisee lawsuit". Nation's Restaurant News. Bnet. 1995-07-31. Retrieved 2008-09-19. 
  4. ^ Burger King v. Weaver, 169 F.3d 1310 (11th Cir. 1999).

Notes[edit]

External links[edit]

Cases citing Mason
Cases citing Weaver
Cases citing Scheck