183 F.3d 750 (8th Cir. 1999), 98-3947, M. B. Restaurants Inc. v. CKE Restaurants Inc.

Docket Nº:98-3947
Citation:183 F.3d 750
Party Name:M. B. RESTAURANTS, INC., A SOUTH DAKOTA CORPORATION, DOING BUSINESS AS JB'S RESTAURANTS #140 AND #142, FRANCHISEES; MARK B. ROGERS, INDIVIDUALLY; D LUCKS, INC., AN IDAHO CORPORATION, DOING BUSINESS AS JB'S RESTAURANT #53, A FRANCHISEE; DALE TRAPPEN, INDIVIDUALLY; JB'S RESTAURANTS #54-MERIDIAN, A FRANCHISEE; BRYCE JOHNSON, INDIVIDUALLY; R & R HOSTS,
Case Date:June 18, 1999
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 750

183 F.3d 750 (8th Cir. 1999)

M. B. RESTAURANTS, INC., A SOUTH DAKOTA CORPORATION, DOING BUSINESS AS JB'S RESTAURANTS #140 AND #142, FRANCHISEES; MARK B. ROGERS, INDIVIDUALLY; D LUCKS, INC., AN IDAHO CORPORATION, DOING BUSINESS AS JB'S RESTAURANT #53, A FRANCHISEE; DALE TRAPPEN, INDIVIDUALLY; JB'S RESTAURANTS #54-MERIDIAN, A FRANCHISEE; BRYCE JOHNSON, INDIVIDUALLY; R & R HOSTS, INC., A WASHINGTON CORPORATION, DOING BUSINESS AS JB'S RESTAURANT #201, A FRANCHISEE; JOHN OR JANE DOES, A-Z, INCLUDING FRANCHISEES AND INDIVIDUALS AS A CLASS, PLAINTIFFS-APPELLANTS,

v.

CKE RESTAURANTS, INC., A CALIFORNIA CORPORATION, FRANCHISOR, DOING BUSINESS AS SUMMIT FAMILY RESTAURANTS, INC., A UTAH CORPORATION, FRANCHISOR, DOING BUSINESS AS JB'S RESTAURANTS, A DELEWARE CORPORATION, FRANCHISOR, DEFENDANTS-APPELLEES.

No. 98-3947

United States Court of Appeals, Eighth Circuit

June 18, 1999

July 02, 1999

Rehearing and Rehearing En Banc Denied Aug. 4, 1999.

Appeal from the United States District Court for the District of South Dakota.

Page 751

Before Murphy and Magill, Circuit Judges, and Reasoner, 1 District Judge.

Murphy, Circuit Judge.

Mark Rogers, Dale Trappen, and Bryce Johnson acquired JB's Restaurant franchises, some of which were subsequently terminated. They sued CKE Restaurant's, Inc. in federal district court in South Dakota, alleging breach of contract and various torts on behalf of a class of franchisees. The franchise agreement contained a forum clause providing that any litigation be conducted in Utah, and the district court 2 dismissed this action for improper venue.

Rogers, Trappen, and Johnson are former employees of JB's Restaurants, Inc. (JB's) who entered into franchise agreements with that company in the early 1990s. Trappen acquired a franchise in Mountain Home, Idaho; Johnson acquired one in Meridian, Idaho; and Rogers acquired two in the Rapid City, South Dakota area. JB's was headquartered in Salt Lake City at the time, and the franchise agreements all contained a forum selection clause requiring that disputes between the franchisor and franchisee be litigated exclusively in Utah. Apparently several of the franchises experienced financial difficulties, and in mid-1998 the franchise agreements of Trappen and Rogers were terminated for alleged failure to pay royalties and advertising fees (rent also in Rogers' case).

In June 1998...

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