Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Assessing a Franchisor's Obligations to Preserve Electronically Stored Information

By Jay W. Schlosser

Earlier this year, a decision was issued by a state court in New York that further expanded the obligations and requirements imposed on parties in connection with protecting against the spoliation of evidence ' specifically the deletion of electronically stored information (“ESI”). Voom HD Holdings, LLC v. EchoStar Satellite L.L.C., 93 A.D.3d 33 (N.Y. Sup. Ct., 2012). While technically not a franchise case, the facts of the Voom case are very similar to a typical franchisor/franchisee dispute and, thus, the decision could significantly affect how franchisors operate. If broadly applied, the decision in Voom arguably could require a franchisor to initiate a litigation hold to preserve relevant documentation, including ESI, as soon as it starts down the path of possibly terminating a franchisee.

The facts in the case are relatively straightforward. Voom HD Holdings, LLC and EchoStar Satellite L.L.C. entered into an affiliation agreement in 2005 pursuant to which EchoStar agreed to distribute Voom's television programming. In 2007, EchoStar determined that Voom had failed to comply with certain financial commitments required by the agreement and/or had failed to meet programming content obligations. In June 2007, EchoStar sent two letters to Voom advising Voom of EchoStar's intent to exercise its audit rights and expressing EchoStar's belief that it was entitled to terminate the agreement because Voom had failed to live up to its obligations under the agreement. Internal communications showed that EchoStar representatives believed that it was likely that Voom would commence litigation if the agreement was terminated. On Jan. 30, 2008, EchoStar formally terminated the agreement. Voom filed its lawsuit the next day.

Read These Next
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

The Article 8 Opt In Image

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.

Major Differences In UK, U.S. Copyright Laws Image

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.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

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.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.