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Are Lost Future Royalties Awardable Damages?
Over the last 16 years, there may have been no more-litigated franchise issue than the recovery of lost future royalties. Specifically, should the termination of, or by, a franchisee entitle the franchisor to recover lost future royalties from the former franchisee?
The trend toward unpredictability of how courts would address this issue began with the landmark case of Postal Instant Press, Inc. v. Sealy, 51 Cal. Rptr. 2d 365 (Ct. App. 1996). In Sealy, the California Court of Appeals held that the franchisor who terminated its franchisee because of the franchisee's failure to pay past due royalties was not entitled to recover lost future royalties for two reasons. First, contract law requires that in order for the franchisor to recover damages, the franchisee's breach must be the proximate cause of the damages. The Sealy court concluded that it was the franchisor's decision to terminate (as distinguished from its remedy of suing for damages as they accrued in the future) that caused the damages. Second, the court concluded that recovery of lost future royalties would be unconscionable. With respect to the first justification for its decision, the court noted that its holding might have been different if the franchisee, rather than the franchisor, had terminated the agreement.
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.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.