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Court Watch
Quiznos' Termination Of Franchise Agreement Declared Unlawful
In December 2008, the District Court for the City and County of Denver, CO, found that a sandwich shop franchisor's actions were wrongful and therefore constituted a breach of the franchise agreement when the franchisor purportedly terminated the agreement of a franchisee who, according to the franchisor's test, had failed to use the required amount of meat to make a single sandwich ordered and inspected by the franchisor's “mystery shopper.” The court found that the franchisor's quality-control test was inherently unreliable for multiple reasons and that the franchisor had wrongfully treated this franchisee differently from other franchisees who had failed the same test; therefore, the franchisor's decision to terminate the franchise agreement on the basis of that test violated the franchisor's obligation to act reasonably when exercising its discretion in determining (as permitted by the terms of the franchise agreement) whether the franchisee's actions had materially impaired the goodwill associated with the franchisor's trademarks. Quiznos Franchising II, LLC v. Zig Zag Restaurant Group, LLC, Case No. 06CV10765 (Colo. Dist. Ct. Dec. 31, 2008).
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
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.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.