Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Liberty Tax seeks injunction, damages against terminated franchise, (Dec 28, 2015)
Law Firms Mentioned:Willcox & Savage, P.C.
Organizations Mentioned:JTH Tax, Inc. | Willcox & Savage, PC
By Greg Hammond, J.D.
A terminated Liberty Tax franchise has allegedly failed to pay amounts owed to franchisor JTH Tax, Inc., doing business as Liberty Tax Service, and has failed to comply with post-termination obligations, according to a complaint filed in the federal district court in Norfolk, Virginia (JTH Tax, Inc. v. Hines, December 23, 2015).
Liberty Tax terminated defendant Charles Hines’ three franchise agreements, claiming that the franchisee advertised outside of his franchise territory and failed to pay royalty and advertising fees and amounts due under two promissory notes. In addition, the complaint asserts that the franchisee breached his post-termination obligations by failing to remove the Liberty Tax sign from his office; continuing to identify himself as a Liberty Tax franchisee; continuing to use items from Liberty Tax bearing Liberty Tax marks; retaining customers files; and failing to comply with the non-competition and non-solicitation covenants.
The four count complaint sets forth claims for breach of franchise agreement, trademark infringement, accounts receivable, and breach of promissory notes. Liberty Tax seeks an injunction prohibiting the defendant from continuing to identify himself as a Liberty Tax franchisee, to deliver all customer lists and information, among other requirements; profits wrongfully gained and treble damages from his trademark infringement; costs and attorney fees; and judgment in the amount of $121,926.22 for amounts due and unpaid.
The case is No. 2:15cv558.
Attorneys: Gary A. Bryant (Willcox & Savage, P.C.) for JTH Tax, Inc.
Companies: JTH Tax, Inc.
News: FranchisingDistribution VirginiaNews