What action by the franchisee preceded the lawsuit filed by Jessie Rodriguez against Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
unt of $200,000. On January 2, 2025 the court dismissed us with prejudice from the action.
Jessie Rodriguez and Cal American Homes and Realty v. Engel & Volkers Americas, Inc. and Does 100, Case No. 2:21-cv-02993, in the U.S. District Court, The Central District of California, On April 7, 2021 our franchisee, Cal American Homes and Realty, and its owner Jessie Rodriguez, filed a complaint against us alleging fraud, intentional interference with prospective economic advantage, negligent interference with prospective economic advantage, and violations of the California franchise investment law, and seeking rescission of its license agreement, punitive damages, actual damages of at least $250,000, as well as attorney's fees and other litigation costs. The complaint followed the franchisee's abandonment of its franchise with us. On April 27, 2021 the parties entered into a settlement agreement and all claims between them were settled, without any damages being paid. The plaintiffs agreed to dismiss the lawsuit and we agreed to not pursue any damages claims against them for the
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the lawsuit filed by Jessie Rodriguez and Cal American Homes and Realty against Engel & Volkers Americas, Inc. on April 7, 2021, followed the franchisee's abandonment of its franchise. The complaint alleged fraud, intentional and negligent interference with prospective economic advantage, and violations of the California franchise investment law. The plaintiffs sought rescission of the license agreement, punitive damages, actual damages of at least $250,000, as well as attorney's fees and other litigation costs.
However, on April 27, 2021, the parties entered into a settlement agreement where all claims were settled without any damages being paid. The plaintiffs agreed to dismiss the lawsuit, and Engel & Volkers agreed not to pursue any damages claims against them for the franchisee's wrongful termination of the license agreement, which was terminated.
This situation highlights the importance of franchisees fulfilling their contractual obligations and the potential legal ramifications of abandoning a franchise agreement. It also demonstrates that Engel & Volkers is willing to pursue legal action to protect its interests but is also open to settling disputes to avoid protracted litigation.