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Franchise Law – Arbitration Process

By: Derek Hawkins//October 6, 2015//

Franchise Law – Arbitration Process

By: Derek Hawkins//October 6, 2015//

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Civil

WI Court of Appeals – District III

Officials: Stark, P.J., Hruz, J., and Thomas Cane, Reserve Judge.

Franchise Law – Arbitration Process

2014AP1849 Building Werks Holdings, LLC v. Paul Davis Resotration, Inc.

We conclude Building Werks’ concerns about the fairness of the arbitration process are insufficient to permit anticipatory judicial intervention. Building Werks must submit its claims in this lawsuit to arbitration in accordance with the franchise agreements before seeking to vacate any award as tainted by fraud, bias or a manifest disregard of the law. However, because Building Werks’ unconscionability claim was directed solely at the validity of the arbitration provisions, and not the entire franchise agreements, the case law dictates it was a proper subject for judicial resolution. We conclude the circuit court properly granted summary judgment on the unconscionability claim because, as a matter of law, Building Werks has not demonstrated procedural or substantive unconscionability. Furthermore, the circuit court acted within its discretion in not compelling additional discovery with respect to the unconscionability claim. Accordingly, we affirm.

Decision

Affirmed. Per Curiam.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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