Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Attorneys' Fees Awards: No License to Pickpocket
It is generally thought that a contract provision awarding attorneys' fees to a prevailing party will be enforced. The most recent saga in the Domino's system's equipment dispute confirms this principle, but, at the same time, suggests that courts will, when appropriate, restrict the amount of the award. (Background: In Bores v. Domino's Pizza LLC, 489 F. Supp. 2d 940 (D. Minn. 2007), the trial court ruled in favor of the franchisee-plaintiffs in a dispute about whether the franchisor could impose certain purchasing restrictions on its franchisees. The decision was reversed by the Eight Circuit, which remanded with direction for the trial court to enter judgment in favor of franchisor Domino's. Bores v. Domino's Pizza LLC, 530 F.3d 671 (8th Cir. 2008).) From a counseling standpoint, there are several lessons to be learned from the trial court's ruling, the main lesson being: Don't spend an attorneys' award until the money is in the bank.
If the true objective for awarding attorneys' fees is to reduce the cost of litigation if successful, the first issue for consideration is whether the other party will be able to pay. Usually, this is a problem for the franchisor, and not for the franchisee that prevails, although recent economic downturns might alter the presumption here. In a large percentage of the cases, the franchisee is gasping for air when proceedings have been commenced. Too many franchisees fail or have issues because they are undercapitalized. Where this is the case, the franchisor, if it prevails, may have problems collecting any judgment granted in its favor. Collecting attorneys' fees will only compound a collectability problem that may already exist.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Supreme Court Rules Rejection of Trademark License Does Not Rescind Rights of Licensee
Mission Product Holdings, Inc. v. Tempnology, LLC The question is whether a debtor's rejection of its agreement granting a license "terminates rights of the licensee that would survive the licensor's breach under applicable nonbankruptcy law."