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Court Watch

By Darryl A. Hart and Charles G. Miller
June 30, 2010

Class Action Waivers in Franchise Agreements Are Enforced

Just when everyone has been thinking that franchisors will have a difficult time enforcing class action waiver clauses, two recent cases have indicated that such clauses are alive and well. In a recent California Court of Appeal decision, Gold v. Melt Inc., Cal. Ct. App., 2d Dist., Bus. Franchise Guide (CCH) ' 14,371 (Apr. 16, 2010), certified for non-publication, a three-judge appellate panel affirmed the trial court's determination that a class action waiver contained in a gelato ice-cream franchise was enforceable. (The designation “certified for non-publication” means that the case cannot be cited as authority to any other California state trial or appellate court. However, the case is unofficially published. See, e.g., WL 1951145.)

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