Franchisee Gets Trial Date, Scoffs at Dunkin' Donuts Settlement Offers

The Providence Journal reported this morning that a date has now been set for trial in a lawsuit filed by franchisee Irwin Barkan against Dunkin’ Donuts, after four years of legal disputes. The article quotes Barkan as saying he is anxious to tell the jury his story, and if he convinces a jury he is right, he could reap more than $13 million, plus interest.

According to the reporter, The Journal received an email response from Dunkin’ spokesperson Andrew Mastrangelo stating,

“Dunkin’ Brands has made every attempt and given Mr. Barkan every opportunity to settle this matter amicably. We have, in good faith, worked to reach a fair and equitable agreement for all parties. We believe the facts and law support our position and that the courts will agree.”

But in an interview with Blue MauMau this morning Barkan said he took issue with that statement saying,

We disagree with Mr Mastrangelo’s statement to the Providence Journal, and the record will show that DBI [Dunkin’ Brands Inc.] has not made any serious or good faith efforts to settle this matter.

Nevertheless, we made specific settlement offers, including offers to communicate with Dunkin’ Donuts management to settle from February, 2005 though last Tuesday, October 13, 2009.  All our communications have been with DBI legal counsel, and there has been no direct communications with DBI management.

Barkan filed his original lawsuit against the franchisor in February 2005, after the franchisor allegedly failed to make a good faith attempt to arrange refinancing with CIT, as it promised, for Barkan’s  shops when they began operating at a loss and experiencing financial stress. He eventually had to file bankruptcy petitions for the stores in a strategic Chapter 11 reorganization plan. The ordeal has reportedly cost him nearly $2 million in legal fees.

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Related Reading:

• Trial date set in federal court for Dunkin’ Donuts suit (Providence Journal)
• Judge Clears Jury Trial for Dunkin' Franchisee
• Franchisee Awaits Jury Trial after Four-Year Battle with Dunkin' Donuts