In which court was the EVCS, LLC lawsuit against Engel & Volkers initially filed?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
EVCS, LLC and Amie Streater v. Engel & Völkers Americas, Inc., Curtin Stinson, Luxury Tucson, Inc., Turner Associates, LLC, and IRE Inc., Case No. 2023CV32068 In the District Court, County of El Paso, State of Colorado. On October 26, 2023 our franchisee in Colorado Springs, Colorado, EVCS, LLC ("EVCS"), and its owner Amie Streater, filed a complaint against us and the above-named co-defendants. Plaintiffs' amended complaint ("complaint") asserted causes of action against us for breach of the franchise agreement and the implied covenant of good faith and fair dealing by failing to stop alleged encroachments by certain other franchisees into the protected territory of EVCS. The complaint also alleges that we are liable to EVCS for damages resulting from breaches of EVCS's alleged "third party beneficiary" rights in the franchise agreements we have with those other franchisees. The complaint further alleges a claim for promissory estoppel, claiming that we breached a purported promise to make EVCS aware if anyone else wanted to submit an application for a franchise in Castle Rock or Castle Pines, Colorado and to allow EVCS to submit its own application. Finally, the plaintiffs seek a declaratory judgment that EVCS can properly declare its franchise agreement terminated or rescinded and receive a return of its investment or, alternatively, an injunction requiring us to enforce provisions in franchise agreements with certain other franchisees to prevent encroachment on EVCS's protected area, and/or money damages in an unspecified amount to be proved at trial. We filed a motion to dismiss the case in January 2024. On March 12, 2024, the Court granted our motion to dismiss in part, dismissing plaintiffs' claims against us for breach of the implied covenant of good faith and fair dealing, third party beneficiary, and promissory estoppel. However,
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the lawsuit filed by EVCS, LLC and Amie Streater against Engel & Völkers Americas, Inc., along with other co-defendants, was initially filed in the District Court, County of El Paso, State of Colorado. The case number assigned to this lawsuit is Case No. 2023CV32068. The complaint was filed on October 26, 2023, by Engel & Volkers's franchisee in Colorado Springs, Colorado, EVCS, LLC, and its owner Amie Streater.
The lawsuit centered around allegations that Engel & Volkers failed to prevent encroachments by other franchisees into EVCS's protected territory, constituting a breach of the franchise agreement and the implied covenant of good faith and fair dealing. Additionally, the complaint asserted that Engel & Volkers was liable for damages resulting from breaches of EVCS's alleged "third party beneficiary" rights in franchise agreements with other franchisees. The plaintiffs also claimed promissory estoppel, alleging that Engel & Volkers breached a promise to inform EVCS if anyone else sought a franchise in Castle Rock or Castle Pines, Colorado, and to allow EVCS to submit its own application.
The plaintiffs sought a declaratory judgment that EVCS could terminate or rescind its franchise agreement and receive a return of its investment. Alternatively, they requested an injunction to enforce provisions in franchise agreements with other franchisees to prevent encroachment on EVCS's protected area, and/or unspecified money damages to be proved at trial. Engel & Volkers responded by filing a motion to dismiss the case in January 2024. On March 12, 2024, the Court granted Engel & Volkers's motion to dismiss in part, dismissing claims for breach of the implied covenant of good faith and fair dealing, third party beneficiary, and promissory estoppel.