LITIGATION

MulcahyReeves has extensive experience representing major clients in franchise and distribution disputes throughout the country. We have handled complex litigation in many federal and state courts and before numerous state administrative agencies.

We have litigated matters involving state franchise statutes, statutes governing the relationship between manufacturers/distributors and dealers, and associated common law claims through trial in all regions of the U.S. and in Puerto Rico.

We also have litigated matters regarding the federal Sherman, Clayton and Robinson-Patman Acts, as well as California’s Cartwright Act and Unfair Competition Act.

Mindful of the costs and burdens of litigation, the firm always assists clients in resolving disputes short of trial, whenever possible. We recognize that most cases should and do settle before they go to trial. Understanding that clients have different business and litigation objectives, we tailor our strategy in each case to address those objectives. However, we believe that the best pre-trial litigation resolution happens when opposing parties understand that we are able and prepared to try the case to conclusion. If it becomes necessary to try a case, our firm brings years of experience in trying many kinds of cases before juries and judges in many different forums.

Our counseling services include advising clients on all aspects of distribution arrangements and issues specific to franchisors, including trademark, copyright, and trade secret laws related to franchise relationships.

Among our counseling and litigation services are:

• Representation from start to finish in federal and state court litigation, arbitration, and administrative proceedings
• Handling mediations and other forms of alternative dispute resolution
• Taking cases to trial (the partners in the firm have taken over 50 cases to trial, through verdict or award)
• Handling appeals, if necessary
• Structuring and documenting franchise and other distribution programs, including agreements and collateral documents
• Advising companies on structuring distribution relationships so as to avoid regulation under state and federal franchise disclosure and business opportunity laws
• Preparing disclosure documents and state registrations of franchise offerings
• Advising companies with respect to registration and disclosure compliance under state laws and Federal Trade Commission disclosure rules
• Addressing franchisor and supplier relationship problems and advising on methods to enhance those relationships
• Advising companies with respect to franchise and dealership terminations, non-renewals and transfers
• Structuring advertising funds and developing advertising programs and materials
• Advising on enforcement of franchise quality standards, reporting obligations, restrictive covenants and trade secrets
• Protection and licensing of trademarks, service marks and trade secrets
• Advising franchisors and suppliers on the impact of developments in technology and communication on their franchise and distribution relationships, including electronic commerce issues

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ADR

For many of our franchisor clients, arbitration, mediation, or another method of alternative dispute resolution is the most efficient way to resolve, or, if necessary, litigate through conclusion complex disputes.

At MulcahyReeves, we know that success in arbitration requires substantial experience and sophistication. We also know that arbitration often involves in-court litigation both at the front end (where franchisees may attempt to avoid arbitration) and at the back end (when it may be necessary to employ the court system to enforce an arbitration award) of the proceedings. We have successfully handled dozens of arbitrations, and we have litigated in court both to compel the enforcement of arbitration provisions and to enforce arbitration awards. We also have been very successful resolving cases via mediation, which, if the opposing party is convinced that we are willing to see the matter through the completion of a trial or arbitration, can be a very efficient method of resolving disputes.

With our unique experience as former in-house counsel, we understand the rationale for, and mechanics of, structuring effective ADR provisions. As part of our practice, we draw upon our extensive ADR experience and counsel our clients about strengthening the arbitration/ADR provisions in their franchise or distribution agreements and other critical factors in ADR decision-making.

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