What was the final court decision regarding the claims of fraudulent inducement and tortious interference with contract in the case against RE/MAX of New England, Inc.?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
terclaim, asserting claims against Plaintiffs for violation of the in-term non-competition provisions of their RE/MAX franchise agreements and other violations. The case was tried in March 2019, and a final post-trial hearing was held on April 26, 2019. On April 17, 2020, the Court issued a split decision, holding that Predecessor Region had not engaged in fraudulent inducement or tortious interference with contract. The Court also dismissed Plaintiffs' claim that the non-compete provisions in the franchise agreements were unenforceable. The Court held in favor of Plaintiffs on their claims for breach of contract, breach of the covenant of good faith and fair dealing, and violation of M.G.L. c.93A, awarding the Plaintiffs $22,565 in damages and partial attorneys' fees. On June 19, 2020, the parties ente
Source: Item 3 — LITIGATION (FDD pages 21–29)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a case involving Real Estate Visionaries, Inc. against RE/MAX of New England, Inc. included claims of fraudulent inducement and tortious interference with contract. The court issued a decision on April 17, 2020, stating that RE/MAX of New England, Inc. had not engaged in fraudulent inducement or tortious interference with contract. However, the court ruled in favor of the plaintiffs on claims for breach of contract, breach of the covenant of good faith and fair dealing, and violation of M.G.L. c.93A. The Plaintiffs were awarded $22,565 in damages and partial attorneys' fees.
This outcome indicates that while Remax was cleared of the specific charges of fraudulent inducement and tortious interference, they were found liable for other contract-related issues. This split decision suggests that while the initial claims of misconduct were not substantiated, the franchisee did experience damages due to contractual breaches or unfair practices.
Ultimately, the parties reached a Confidential Settlement Agreement and Release on June 19, 2020, where RE/MAX of New England, Inc. agreed to pay the Plaintiffs $22,565 and partial attorneys' fees to satisfy the court's order. Both parties waived their rights to appeal, concluding the matter. This settlement suggests a desire to avoid further legal costs and uncertainty, even though Remax had initially prevailed on some of the key claims.