Dady & Gardner Partner Andrew Malzahn recently prevailed in an argument before the U.S. Court of Appeals for the Eighth Circuit in a noncompete dispute involving a former franchisee operating a pizzeria following the expiration of the franchise agreement. Breadeaux’s Pisa, LLC v. Beckman Bros., 83 F.4th 1113 (8th Cir. 2023).
The issue before the Court was whether the franchisor could “stay” its own claims (under 9 U.S.C. § 3) in favor of a later-filed arbitration. Mr. Malzahn argued that the franchisor could not seek a “do-over” after choosing to litigate extensively in the District Court. In ruling in our client’s favor, the Court noted: “Notably, Breadeaux is the plaintiff and elected to litigate in the district court below. Only after a series of adverse rulings did Breadeaux seek to stay the litigation in favor of arbitration.” Therefore, the dispute will continue in the District Court.
Read the entire opinion here.