Court Watch: Franchise Alert - June 2012
June 20, 2012
by Cynthia M. Klaus and Susan E. Tegt
In the June 2012 issue of the Law Journal Newsletter's – Franchising Business & Law Alert, Cynthia Klaus and Susan Tegt discussed three recent cases including Ohio Learning Centers, LLC v. Sylvan Learning, Inc. The recent case out of the District of Maryland serves as a reminder to franchisors and franchisees that a "you breached first" defense to a breach of contract claim will not likely absolve a breaching party from liability. The Maryland federal district court held that parties to a franchise agreement are not permitted to reap the benefits of that agreement, while ignoring their obligations, only to later assert that their behavior was permissible because the other party was the first to breach the franchise agreement.
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