Franchisees win big against 7-Eleven
The U.S. Court of Appeals for the Ninth Circuit vacated both previous district court decisions in favor of 7-Eleven franchisees in a consolidated appeal on February 27, sending the entire matter back to the district court. So, Eric H. Karp, general counsel for the National Coalition of 7-Eleven Associations, made the announcement, saying the ruling states that two important errors of law were made by the district court. Franchisees won against 7-Eleven in this appeal.
Shannon Liss-Riordan of Lichten & Liss-Riordan, P.C. in Boston, Massachusetts represented the 7-Eleven plaintiff franchisees on the appeal and will represent them going forward. Shannon Liss-Riordan acts as one of the nation’s top plaintiffs’ class action employment lawyers. Who chalked up victories against big-name corporations such as Starbucks, FedEx, and American Airlines.
Firstly, the case files in October 2017, addressing misclassification of franchisees, and asserted that the pervasive controls 7-Eleven Inc. Which exercises over almost every single aspect of day-to-day operations of franchised locations, deems the franchisees employees, not independent contractors, in the eyes of the law, as well as other legal factors.
As soon as U.S. District Judge John F. Walter of Central District of California issued a judgment on the pleadings dismissing all the franchisee plaintiffs’ claims, the franchisees appealed to the Ninth Circuit Court of Appeals.
The second case, seeking an injunction against 7-Eleven Inc., was filed in June 2018. It stopped the franchisor from forcing franchisees to sign releases of claims as a condition of renewing their franchise agreements. So, the central allegation of this injunction case was that such releases of claims are invalid under California law.