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Managing 'Perfect Storm' Litigation for a Franchise System
A “perfect storm” is a detrimental or calamitous situation or event arising from the powerful combined effect of a unique set of circumstances. A confluence of events, including major litigation against the franchisor, can create a “perfect storm” setting for a franchise system. In this setting, the franchise system may find itself in a no-win situation in which all potential solutions or avenues of escape lead to a result that is tantamount to death of the system: bankruptcy, closure of the system, or a dramatic change in the system's business and sources of revenue. When the litigation cannot be settled or otherwise resolved, management of the franchise system and counsel must take extraordinary steps to manage and solve the problems.
A hypothetical example of perfect storm litigation is a system that relies on a group of patents that provides franchisees with a competitive advantage in the system's market. Patent litigation is instigated by a national competitor that asserts infringement claims based on its own patents and also seeks to invalidate the system's primary patents based on inequitable conduct when the patent applications were first filed. While there is often significant uncertainty in patent litigation, the franchise system being sued might be facing a perfect storm if it cannot settle. A jury trial that results in a judgment in favor of the plaintiff and invalidity of the system's patents may be a risk the system cannot take.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.