Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Factors That Contribute to a Community of Interest

By Christopher M. Hanes
May 31, 2007

Several states require a 'community of interest' between the parties to establish the requisite relationship to trigger the notice and disclosure requirements under the state's dealership or franchise laws. But ask franchise lawyers what is meant by this phrase, and what becomes clear is how unclear determining a community of interest can be. The U.S. District Court for the Eastern District of Wisconsin shed some light on the issue in its recent decision in Miller-Bradford & Risberg, Inc. v. VT LeeBoy, Inc., Business Franchise Guide '13,522 (filed Jan. 26, 2007).

Miller-Bradford & Risberg ('MBR'), a distributor of equipment for use in the construction, road-building, and forestry industries, sought to prevent termination of its agreement with VT LeeBoy, the manufacturer of a line of commercial asphalt pavers, road graders, and related products sold by MBR, based on the manufacturer's alleged violation of the Wisconsin Fair Dealership Law ('WFDL'). Because MBR failed to establish that LeeBoy was indeed a 'distributor' as defined in the WFDL, the U.S. District Court for the Eastern District of Wisconsin denied MBR's motion for preliminary injunction.

For more than nine years prior to the lawsuit, MBR acted as the exclusive provider of LeeBoy commercial pavers and equipment in a territory encompassing the state of Wisconsin and surrounding communities in Michigan and Illinois. In November 2006, LeeBoy notified MBR of its decision to terminate the agreement between the parties. The issue before the court was whether the relationship between MBR and LeeBoy was a 'dealership' at the time LeeBoy gave notice of its intent to terminate the agreement. If so, MBR would be entitled to the benefits afforded to distributors that prevent unfair terminations.

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Stranger to the Deed Rule Image

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.