Sixth Circuit Denies Coffee Beanery Petition for Rehearing

ANN ARBOR,  Mich. (Blue MauMau) —The United States Court of Appeals for the Sixth Circuit has denied the petition for rehearing and suggestion for rehearing en banc—a council in which all judges of the court hear the case rather than just the panel of judges—in the case of WW, LLC v. The Coffee Beanery, Ltd. In that decision the Sixth Circuit had ordered that the arbitration award in favor of The Coffee Beanery be vacated  on the grounds of manifest disregard of the law and has ordered the case to be tried in a court, not before the American Arbitration Association.

The order issued on February 9 states that the petition for rehearing en banc had been circulated not only to the original panel members but also to all other active judges of the court, and no judge requested a vote on rehearing. The original panel then further reviewed the petition and concluded that the issues raised had already been fully considered. The judges stated, “Accordingly, the petition is denied.”

Coffee Beanery attorney Karl V. Fink, Pear Sperling Eggan & Daniels, had filed his modified rehearing petition on November 25, 2008.

Franchisees Richard Welshans and Deborah Williams said they have been reinvigorated with the decision and are eager to finally have their day in court. “We commend the Sixth Circuit for reviewing the facts in our case and not just rubber stamping the arbitration decision,” Welshans said. Williams added, “We are gratified that our story has spurred so much interest and placed a spotlight on the arbitration system and the need for reform. Arbitration is carried out behind closed doors and allowed to go unchallenged. This has created a system ripe for corruption.”

Telephone calls to JoAnne Shaw, CEO of The Coffee Beanery, and attorney Karl Fink were not returned.

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Related reading: 

• Sixth Circuit Sends Coffee Beanery Franchisees to Court
• Coffee Beanery Franchisees Win on Appeal; Arbitration Decision Vacated
• Coffee Beanery Franchisees Uncover Arbitrator Bias
• Coffee Beanery Story To Be Presented to Congress
• Coffee Beanery Franchisees Uncover New Evidence