Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Country Inns & Suites seeks liquidated damages from terminated franchisee, (Dec 4, 2015)

By Greg Hammond, J.D.

An investment company allegedly breached a license agreement with Country Inns & Suites By Carlson, Inc. by failing to timely commence construction of the hotel, according to a complaint filed in the federal district court in St. Paul, Minnesota. Country Inns consequently seeks a minimum of $87,000 in liquidated damages (Country Inns & Suites By Carlson, Inc. v. Fourstar Investment Group, Inc., December 3, 2015).

The parties allegedly entered into a license agreement in December 2006, in which Fourstar agreed to commence construction for the franchised hotel by December 31, 2010. The agreement was terminated, however, because Fourstar failed to commence construction at the agreed upon time. According to the terms of the agreement, Fourstar was required to pay $87,000 in liquidated damages. The parties subsequently agreed that if Fourstar could find a substitute licensee, Country would waive its right to the liquidated damages. Nevertheless, Fourstar failed to find a substitute licensee and failed to pay the liquidated damages upon Country’s demand.

Country consequently filed a two count complaint, alleging breach of the license agreement, termination agreement, and personal guaranty for failure to pay liquidated damages. As a result, Country seeks an order ratifying and enforcing the termination of the license agreement; an award against defendants for liquidated damages; reasonable costs and expenses, including attorney fees; as well as an award for pre- and post-judgment interest.

The case number is 0:15-cv-04283-DWF-SER.

Attorneys: Craig P. Miller (Gray, Plant, Mooty, Mooty & Bennett, P.A.) for Country Inns & Suites By Carlson, Inc.

Companies: Country Inns & Suites By Carlson, Inc.; Fourstar Investment Group, Inc.

News: FranchisingDistribution MinnesotaNews