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Court Watch

By Darryl A. Hart and Charles G. Miller

Aggressive Pursuit of Unenforceable Provision in Franchise Agreement Equals Malicious Prosecution

A valuable lesson for franchisors can be learned from a recent not-for-publication case from California. In Robinson v. U-Haul Co. of California, et al., Bus. Franchise Guide (CCH) '14,481 (Cal. Ct. of Appeal, 1st Dist., Oct. 20, 2010), the appellate court considered various trial court rulings on defendant U-Haul's special motion to strike plaintiff Robinson's complaint for malicious prosecution and unfair business practices. The complaint was based on U-Haul's actions after Robinson terminated his dealership contract with U-Haul and had given U-Haul back all of its material and signs. In addition, U-Haul took over and assigned Robinson's telephone number to another U-Haul dealer.

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