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Glenn E. Davis of Gallop, Johnson & Neuman Secures $472,000 Arbitration Award for Medicine Shoppe International in Franchise Dispute Affirmed by Eighth Circuit Court
August 6, 2010, St. Louis, Missouri…Glenn E. Davis, an attorney and partner at Gallop, Johnson & Neuman, L.C. whose practice focuses on antitrust, distribution and franchise issues, securities and corporate litigation, corporate compliance and white-collar criminal defense, has secured a $472,000 arbitration award for client Medicine Shoppe International, Inc. (MSI) in a franchise termination dispute affirmed by the U.S. Court of Appeals for the Eighth Circuit. (Case No. 09-2179).
"This is a noteworthy reinforcement of the validity of arbitration provisions in franchise agreements, and the likelihood that arbitral awards will be confirmed and stand up to appellate challenge," said Mr. Davis of MSI’s arbitration case against Turner Investments, Inc., a multi-point franchisee located in West Virginia.
On July 21, 2010, the Eighth Circuit Court of Appeals affirmed an earlier decision by the U.S. District Court for the Eastern District of Missouri that confirmed an arbitration award favoringMSI in the amount of $472,164.42, awarding MSI all requested damages and attorneys' fees and costs in its arbitration case against Turner Investments.
MSI had filed a claim with the American Arbitration Association in 2008 against Turner Investments, Inc. for an alleged violation of a 20-year franchise agreement that MSI and Turner established in 1994. In that filing, MSI sought lost future profits and future license fees, noting that Turner had closed that franchise in 2007, which MSI alleged was a breach of the franchise agreement.On January 30, 2009, the AAA arbitrator granted MSI all its requested damages, When Turner did not honor the award, MSI sought a judgment in the District Court, which subsequently confirmed the award. Turner then filed an appeal with The Eighth Circuit Court of Appeals, seeking to overturn the District Court’s confirmation order. On July 21, 2010, the Eighth Circuit affirmed the judgment of the District Court. (The Eighth Circuit opinion can be seen at the website http://www.ca8.uscourts.gov by entering the case number 09-2179 in the search function.)
Mr. Davis said, "In the franchise arena, arbitration awards imposing lost profits on failing franchisees are not common. This case aligns the Eighth Circuit with those jurisdictions recognizing that such awards may be enforced. We showed the arbitrator evidence of lost profits with reasonable certainty, and the District Court and now the Eighth Circuit confirmed the award in no uncertain terms.”
"This is strong authority for franchisors to enforce their agreements to the letter,” Mr. Davis said.
Mr. Davis has successfully handled antitrust and franchise litigation, class action and corporate business matters for clients in agribusiness, construction equipment, franchising, healthcare, hospitality, manufacturing, pharmaceuticals, product distribution, securities, financial services and other industries. His accomplishments include reversal of a multi-million dollar Treble Damage RICO verdict as appellate counsel for senior officers of Viacom Outdoor, Inc. in Craig Outdoor Advertising, Inc. v. Viacom Outdoor, Inc. (8th Circuit, 2008), and many other trial wins. Since 2003, Mr. Davis has been listed among “The Best Lawyers in America” for Antitrust Law, Commercial Litigation and Franchise Law. He has been recognized as a Missouri “SuperLawyer.”
Mr. Davis is admitted to practice before Missouri and Illinois state courts; the U.S. District Courts for the Eastern and Western Districts of Missouri; the Southern and Central Districts of Illinois; the District of Columbia; and the U.S. District Courts of Appeal for the Seventh, Eighth and D.C. Circuits; and the Supreme Court of the United States.
In addition to numerous jury and bench trials in federal and state courts, he has litigated in hearings, tribunals and investigative proceedings before the Federal Trade Commission, the Securities Exchange Commission and other industry arbitration forums. He is a Charter Fellow, Litigation Counsel of America, and a member of the American Bar Association, the American Health Lawyers Association, the Missouri Bar and Bar Association of Metropolitan St. Louis, among other organizations. Mr. Davis earned a J.D. degree from Washington University School of Law and B.A. from DePauw University.
Gallop, Johnson & Neuman, L.C., a full service law firm of 80 attorneys, has provided legal services to clients in diverse industries since its founding in 1976 and is one of the largest law firms in St. Louis. The firm serves public corporations; privately-held companies; entrepreneurs and start-up enterprises; individuals and families; trustees and trust beneficiaries; charities; and non-profit entities.
For more information, contact Lois A. LaDriere, Director of Marketing, at 314.615.6000 or see the website www.gjn.com.