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Court Watch
Sixth Circuit Upholds Noncompete Injunction
A franchisee's attempt to inject ambiguity into a noncompete clause in a franchise agreement was rejected by the Sixth Circuit in Certified Restoration Dry Cleaning Network, LLC v. Tenke Corp., 511 F.3d 535 (6th Cir. 2007). The plaintiff franchisor, Certified Restoration Dry Cleaning Network, and the defendant franchisee, Tenke Corp. and owner Stephen Dubasik, had entered into a franchise agreement in June 2002. The franchisor's business is a restoration dry cleaning system 'for cleaning smoke, water, and/or odor damaged clothing and other soft goods from insured casualties, such as house fires.' Restoration Dry Cleaning Network enters into franchise relationships with persons who already own dry cleaning establishments and want to add restoration services to their existing business. In November 2006, Restoration Dry Cleaning Network terminated Dubasik's franchise for failure to make required payments under the franchise agreement.
Shortly after the termination, Restoration Dry Cleaning Network discovered that the defendant had not discontinued all of its restoration dry cleaning services as required by the post-termination noncompete clause in the franchise agreement. The noncompete clause stated: 'For a period of 24 months from the time of expiration or termination of this Agreement, you promise not to engage ' in any [] capacity in any restoration dry cleaning business' within 25 miles of the franchised territory.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?