What specific amount of actual damages did Jessie Rodriguez seek from 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, Jessie Rodriguez, along with Cal American Homes and Realty, sought at least $250,000 in actual damages from Engel & Volkers in a complaint filed on April 7, 2021. The complaint also included allegations of fraud, intentional and negligent interference with prospective economic advantage, and violations of the California franchise investment law. Additionally, Rodriguez sought rescission of the license agreement, punitive damages, attorney's fees, and other litigation costs. The lawsuit was initiated after the franchisee abandoned their franchise with Engel & Volkers.
However, the dispute was resolved relatively quickly. On April 27, 2021, the parties reached a settlement agreement, and all claims were settled without Engel & Volkers paying any damages. As part of the agreement, 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.
This specific case illustrates the potential for litigation between Engel & Volkers and its franchisees, particularly concerning allegations of fraud or violations of franchise laws. While the initial claim involved a significant amount of damages, the prompt settlement without payment suggests that Engel & Volkers was able to resolve the matter favorably. Prospective franchisees should be aware of the possibility of such disputes and the associated costs, even if they are ultimately settled.