In the litigation involving Carls, what claims did CJR's Counterclaim assert against 6Points?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
described above. On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed.
On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed. CJR's Counterclaim names 6Points, Michael Meekins and Michael Levine as defendants ("Franchisee Parties"). The Counterclaim asserts claims against 6Points for breach of its development, franchise, and letter of credit agreements, and for anticipatorily repudiating the development and franchise agreements, as well as for breach of its obligation of fair dealing. The Counterclaim asserts claims against Michael Meekins and Michael Levine for breach of a contract to provide a letter of credit, and asserts that they are liable for payment of all amounts owing by 6Points pursuant to a personal guarantee. The Counterclaim claims damages in an amount to be proven at trial.
On November 16, 2016, 6Points, Michael Meekins and Michael Levine served a Reply and Defence to Counterclaim. The Defence to Counterclaim denies all liability of 6Points, Michael Meekins and Michael Levine and requests that the Counterclaim be dismissed. On December 5, 2016, CJR served a Reply to Defence to Counterclaim. On December 19, 2018, the Court ordered, 6Points to deliver documents to CJR in preparation for further discoveries. On or about October 12, 2022, the parties reached an agreement to settle the litigation with the following terms: (a) defendants agreed to pay Franchisee Parties $5,500,000 US dollars, (b) the parties agreed to mutual relea
Source: Item 3 — LITIGATION (FDD pages 21–24)
What This Means (2024 FDD)
According to the 2024 Carls FDD, a counterclaim was filed by CJR against 6Points, Michael Meekins, and Michael Levine. The counterclaim against 6Points specifically alleged breach of development, franchise, and letter of credit agreements. It further claimed that 6Points anticipatorily repudiated the development and franchise agreements and breached its obligation of fair dealing.
The counterclaim against Michael Meekins and Michael Levine asserted breach of a contract to provide a letter of credit. It also claimed that they were liable for payment of all amounts owed by 6Points due to a personal guarantee. The counterclaim sought damages, with the specific amount to be determined at trial.
Ultimately, the parties reached a settlement agreement on or about October 12, 2022. As part of the settlement, the defendants agreed to pay the Franchisee Parties $5,500,000 US dollars. Both parties agreed to mutual releases of all claims, including those arising from the litigation, without any admission of liability. The court then dismissed the case on October 14, 2022.