Groundbreaking Court Decision Has National Implications Against Franchisor Snap-on Tools
December 22 2004 - 12:14PM
PR Newswire (US)
Groundbreaking Court Decision Has National Implications Against
Franchisor Snap-on Tools NEW BRUNSWICK, N.J., Dec. 22 /PRNewswire/
-- Marks & Associates announced the following today: In a
groundbreaking legal opinion, New Jersey Superior Court Judge
Mathias E. Rodriguez has determined that the wives of Snap-on Tools
dealers have an independent legal right to sue the franchisor in
court before a jury, in connection with their own fraud claims
against the company and, accordingly, are not bound to bring their
claims in arbitration. Prior to Judge Rodriguez's decision, Snap-on
had argued that claims of the spouses, like those of their tool
dealer husbands, had to be brought in a proceeding before the
American Arbitration Association. "This decision has nationwide
implications for all 3,400 current Snap-on dealers, as well as all
former dealers and their wives who claim that they were defrauded
in their franchise agreement by Snap-on," said Gerald A. Marks, the
Red Bank, N.J.-based attorney representing the three plaintiffs in
the case before Judge Rodriguez. The plaintiffs in the New Jersey
case are: Nancy Casey of Middletown, Abbye Goldwasser of New
Brunswick and Maritza Franco of Scotch Plains. Marks now plans to
institute additional suits on behalf of the wives of other Snap-on
franchisees in New York, Florida, California, Ohio, and other
states nationwide. "The wives wanted to present their claims before
a jury because the terms of the arbitration clause limits their
legal rights by shortening the time to bring suit, limits the scope
of pre-trial discovery and prevents the wives from banding together
in either a joint or class action," Mr. Marks explained. "A jury
trial offers the most objective forum for the spouses to prove
their claim that Snap-on had engaged in a consistent, deliberate
policy of inducing families to invest their money into a franchised
tool route, when Snap-on knew that the territory contained an
insufficient amount of customers, or that a previous dealer had
failed in that very same route." Commenting on the Court's
decision, Susan Kezios, President of the American Franchisee
Association, said, "The gates of justice are now open to wives and
other family members who were hurt by Snap-on's wrongful action.
Like many other franchise companies, Snap-on will no longer be able
to hide adverse decisions against it through the arbitration
process. This confidential process does not permit a finding of
franchisor wrongdoing in one arbitration to be used in another, as
is the case in normal court proceedings." DATASOURCE: Marks &
Associates CONTACT: Gerald Marks, Esq., or Justin Klein,
+1-732-747-7100, both of Marks & Associates; Martin Gitlin,
Duran/Gitlin Group, +1-914-528-7702, for Marks & Associates
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