U-SAVE Franchise Lawsuits
U-Save Franchise Lawsuits are included in the Item 3 Litigation section of the U-Save Franchise Disclosure Document (FDD), and have been published below.
(UnhappyFranchisee.Com) U-Save franchise lawsuits disclosed in the U-Save 2016 Franchise Disclosure Document (U-Save FDD) include disputes with a U-Save franchise owner in New Jersey and two separate U-Save franchise owners in Mississippi.
U-Save franchise lawsuits also include financial disputes with the former Co-Chair and Co-CEO of Franchise Services of North America, Inc, Sanford Miller, and U-Save’s former Chief Operating Officer, Bob Barton.
The arbitrator in the Bob Barton litigation issued an award of $596,645.44 in the executive’s favor.
Also read: U-SAVE Franchise Complaints
U-SAVE Franchise Lawsuits
Just Filed – not yet disclosed in the U-Save FDD:
Trek Auto Sales, Inc. v. U-Save Auto Rental of America, Inc. (U.S. Dist. Ct. for the District of New Jersey, Case No. 3:15-cv-08323-FLW-TJB).
On October 29, 2015, Trek Auto Sales, LLC (“Trek Auto”), a franchise, initiated a lawsuit against U-Save alleging violations of the New Jersey Franchise Practices Act and breach of contract. At the time it initiated its lawsuit, Trek Auto also applied for a temporary restraining order (“TRO”) prohibiting U-Save from terminating the parties’ franchise agreements or turning off Trek-Auto’s ability to accept online rental reservations. The ex parte TRO was granted on November 4, 2015. After being served with the Complaint and TRO, U-Save removed the action to the United States District Court for the District of New Jersey on November 30, 2015. On December 21, 2015, U-Save filed a motion to dissolve the TRO and a separate motion to compel arbitration.
On December 29, 2015, the Court dissolved the state court TRO and the next day, U-Save terminated its franchise agreement with Trek Auto. On January 11, 2015, Trek-Auto filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of New Jersey. On February 1, 2016, the Bankruptcy Court entered an Order granting a preliminary injunction continuing for ninety (90) days that directed U-Save to reinstate the franchise contingent upon Trek Auto paying the sum of $75,000 to U-Save to cover prospective amounts due during the period of the preliminary injunction. The Court referred all other matters, including whether the franchise agreements were properly terminated, to arbitration as provided under the franchise agreement.
On February 10, 2016, the Court entered an Order dismissing the Bankruptcy Case, and retaining jurisdiction to enforce the terms of its February 1, 2016 order.
Trek Auto Sales, Inc. v. U-Save Auto Rental of America, Inc.
Bob Barton v. U-Save Auto Rental of America, Inc., AAA #69-166-57-14.
On March 16, 2014, U-Save’s former Chief Operating Officer, Bob Barton initiated an arbitration action against U Save. Barton’s employment was terminated by U-Save in November 2013 for “cause” based upon Barton’s alleged misconduct. In this action, Barton claimed that U-Save owed compensation and benefits to him pursuant to the employment agreement to which he and U Save were parties (i.e., that U-Save breached its employment contract with Barton). Barton also alleged that he is entitled to receive payments pursuant to a “change of control” provision contained in his employment agreement with U-Save. U-Save thoroughly investigated Barton’s allegations and believed that they wholly lacked merit. Accordingly, U-Save vigorously defended against Barton’s claims, and denied any and all liability to him. An arbitration hearing was held on February 2-3, 2015, after which the parties submitted various position statements and documents to the tribunal.
On May 6, 2015 the arbitrator issued an award, in Barton’s favor, in the amount of $596,645.44, and each party was directed by the arbitrator to pay his/its own attorney fees and costs. On May 8, 2015, U-Save filed a motion to vacate the arbitrator’s award in the U.S. District Court for the Southern District of Mississippi. In its motion, U-Save contended that the arbitrator exceeded his powers under the law by awarding certain monetary amounts to Barton which were not justified under the facts or under the law. On February 12, 2016, the court denied U-Save’s motion and affirmed the arbitration award. U-Save subsequently filed a motion which challenged the calculation of the amount owed to Barton under the arbitration award. That and other motions remain before the Court.
Hollis L. Gray v. U-Save Holdings, Inc. and U-Save Auto Rental of America, Inc. (Circuit Ct.,1st Judicial District, Hinds, Co., Mississippi, C.A. No. 251-02-909CIV).
On July 17, 2002, Mr. Gray, the former owner of the franchise territory for the Mobile, Alabama area, filed a Complaint against U-Save Holdings, Inc. (“Holdings”) and U-Save Auto Rental of America, Inc. in which he alleges fraud in the inducement, material misrepresentation of facts, breach of contract and gross negligence, and seeks compensatory and punitive damages. On September 26, 2002, U-Save Auto Rental and Holdings filed their Answer, in which they deny all counts and any liability to Mr. Gray. Arbitration was conducted in October, 2006, and the arbitrator ruled on February 19, 2007 that no fraud was committed, but that U-Save had negligently misrepresented certain facts to Mr. Gray and awarded him $55,000, plus interest.
U-Save Auto Rental of America, Inc. v. RAC Enterprises L.L.C.• and David Rapier (U.S. Dist. Ct. for the S.D. of Miss., Civil Action No. 3:12CV464 WHM-LRA).
On July 5, 2012, U-Save Auto Rental of America, Inc. filed an action against its former franchisee, RAC Enterprises and an individual guarantor, Mr. Rapier, for failure to pay amounts due under a franchise agreement and for default under a promissory note arising out of the franchisee’s performance under the franchise agreement.
On December 13, 2013 the Court entered an Agreed Final judgment finding that the defendants owed U-Save $1,381,029.10 plus $89,124.18 in accrued interest.
U-Save Auto Rental of America, Inc. vs Sanford Miller (U.S. Dist. Ct. for the S.D. of Miss., Case No. 3:13-CV-127 HTW-LRA).
On March 1, 2013, U-Save initiated legal proceedings against Sanford Miller, the former Co-Chair and Co-CEO of U-Save and Franchise Services of North America, Inc., in the U.S. District Court for the Southern District of Mississippi, in which it sought a determination from the court that U-Save owed no post-termination compensation or benefits to Mr. Miller under his employment agreement. Mr. Miller responded to U-Save’s lawsuit by claiming that he was entitled to receive such compensation and benefits, and by bringing claims against FSNA and U-Save for breach of contract, breach of the covenant of good faith and fair dealing, intentional infliction of emotional distress, and defamation. Mr. Miller also brought claims again U-Save’s Chief Executive Officer, Thomas P. McDonnell III, for interfering with contractual relations, fraud, and conspiracy to commit fraud, defamation, and intentional infliction of emotional distress. On August 7, 2014, the Court dismissed with prejudice all claims by all parties. The Court, on its own Motion, sealed the record and ordered all parties not to discuss the case further.
Sanford Miller and Narcoossee Place LLC v. Macquarie Group Limited, Macquarie Capital (USA), Inc., MIHI, LLC, Boketo, LLC, Adreca Holdings Corp., and Bruce Donaldson (In the Supreme Court of the State of New York, County of New York, Case No. 651 612/13, Filed 3 May 2013).
Sanford Miller, the former Co-Chair and Co-CEO of Franchise Services of North America, Inc., asserts claims of tortuous interference with his purported contractual and prospective business relations, defamation, fraudulent inducement and intentional infliction of harm. The case is stayed pending the outcome of the Mississippi action described above. On November, 14, 2014, the plaintiffs filed an Amended Complaint which makes clear that any actions alleged against Adreca Holdings Corp. are those that took place prior to May 3, 2013, while Adreca was an affiliate of Macquarie Group.
On May 3, 2013, Adreca was merged into Franchise Services of North America, Inc.
Tom McDonnell, U-Save Holdings, Inc., Franchise Services of North America Inc. (FSNA): All individuals and companies discussed on this site are invited to provide clarifications, corrections, rebuttals or other statements for publication and linking from the original content. Email us at UnhappyFranchisee[at]gmail.com. You may also participate in the comment section of any page.
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