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Domino's Prevails Against Franchisee in U.S. Supreme Court

By Joseph W. Sheyka
March 30, 2006

The U.S. Supreme Court recently ruled in favor of Domino's Pizza in a case brought under '1981 of the Civil Rights Act of 1866 by the sole shareholder of a corporation who alleged that Domino's breach of several contracts with the corporation was based upon racial animus toward him. Domino's Pizza, Inc. v. McDonald, 126 S.Ct. 1246 (2006).

Domino's had entered into contracts with the corporation for the development of four Domino's Pizza stores in the Las Vegas area. Disputes arose under the contract, and the contract went uncompleted. The corporation filed for Chapter 11 bankruptcy apparently because of the failed contracts. The bankruptcy trustee settled the contract claims with Domino's and gave Domino's a full release.

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