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Court Watch

By Darryl A. Hart and Charles G. Miller
March 26, 2010

New CO Appellate Case Has Something for Everyone

In a closely watched case in which the International Franchise Association (“IFA”) and the American Association of Franchisees and Dealers (“AAFD”) filed amicus briefs, the Colorado Court of Appeal had occasion to deal with a number of issues that often come up in franchise litigation, including the impact of exculpatory clauses, waiver of jury trial, effect of the FTC Rule on disclosure, and liability of attorneys for aiding and abetting disclosure violations. Colorado Coffee Bean, LLC v. Peaberry Coffee, Inc. 2010 WL 547633 (Colo. App. Feb. 18, 1010) involved Peaberry Coffee franchises in Colorado. Defendants were the franchisor, its parent, the law firm that assisted in drafting the UFOC, and certain officers or shareholders of the franchisor and its parent. The case was tried before a judge because of a jury trial waiver in the franchise agreement.

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