Zounds Hearing Franchising LLC et al v. Harbold et al
| Zounds Hearing Franchising LLC and Zounds Hearing Incorporated |
| Glenn Harbold and Perfect Clarity LLC |
| 2:2016cv01467 |
| May 12, 2016 |
| U.S. District Court for the District of Arizona |
| Phoenix Division Office |
| Maricopa |
| Neil V Wake |
| Contract: Franchise |
| 28 U.S.C. ยง 2201 Declaratory Judgment |
| None |
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Filing
25
ORDER - IT IS ORDERED that the 51 Order entered September 15, 2017, (Doc. 51 in Lead Case CV-16-01462-PHX-NVW) is VACATED. ORDER - The Zounds Defendants' 43 Renewed Motion to Dismiss Amended Complaint or, Alternatively, to Stay Proceedin gs and Compel Mediation is denied (in Lead Case CV-16-01462-PHX-NVW). FURTHER ORDERED that Case No. CV-17-00728 is deconsolidated and the Clerk shall transfer the case to the United States District Court for the Northern District of Ohio. FURTHER ORDERED that the Clerk enter judgment in consolidated Cases No. CV-16-01462, No. CV-16-01465, No. CV-16-01467, and No. CV-16-01470 declaring and adjudging as follows: 1. Section 22(C) of the Franchise Agreement is invalid and une nforceable to the extent it requires that mediation occur in Phoenix, Arizona as a condition precedent to the suit Defendants filed in Ohio because 2. The Ohio Business Opportunity Purchasers Protection Act, Ohio Rev. Code § 1334.06(e), provides that "any provision in an agreement restricting jurisdiction or venue to a forum outside of this state, or requiring the application of laws of another state, is void with respect to a claim otherwise enforceable under [the Act]&quo t; and the claims the Franchisees filed in Ohio are claims under the Act, and 3. Section 22(A) of the Franchise Agreement providing that "[t]his agreement shall be governed by and construed in accordance with the laws of the State of Arizo na" is invalid and unenforceable with respect to the claims and issues under the Ohio Business Opportunity Purchasers Protection Act that the Franchisees filed in Ohio. The Clerk shall terminate these cases in this Court. Signed by Senior Judge Neil V Wake on 9/19/2017. (ATD)
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Filing
22
ORDER - The Zounds Defendants' 43 Renewed Motion to Dismiss Amended Complaint or, Alternatively, to Stay Proceedings and Compel Mediation is denied (in Lead Case CV-16-01462-PHX-NVW). FURTHER ORDERED that Case No. CV-17-00728 is deconsol idated and the Clerk shall transfer the case to the United States District Court for the Northern District of Ohio. FURTHER ORDERED that the Clerk enter judgment in consolidated Cases No. CV-16-01462, No. CV-16-01465, No. CV-16-01467, and No. CV-16-01470 declaring and adjudging as follows: 1. Section 22.C of the Franchise Agreement is invalid and unenforceable to the extent it requires that mediation occur in Phoenix, Arizona as a condition precedent to the suit Defendants fil ed in Ohio because 2. The Ohio Business Opportunity Purchasers Protection Act, Ohio Rev. Code § 1334.06(e), provides that "any provision in an agreement restricting jurisdiction or venue to a forum outside of this state, or requirin g the application of laws of another state, is void with respect to a claim otherwise enforceable under [the Act]" and the claims Defendants filed in Ohio are claims under the Act, and 3. Section 22.A of the Franchise Agreement providing that "[t]his agreement shall be governed by and construed in accordance with the laws of the State of Arizona" is invalid and unenforceable with respect to the claims and issues under the Ohio Business Opportunity Purchasers Protection Act that the Franchisees filed in Ohio. The Clerk shall terminate these cases in this Court. Signed by Senior Judge Neil V Wake on 9/15/2017. (ATD)
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