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Civil Procedure Keyed to Cross
Burger King Corp. v. Rudzewicz
Citation:
471 U.S. 462 (1985)
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
John Rudzewicz, a Michigan accountant, partnered with Brian MacShara to acquire a Burger King franchise in Drayton Plains, Michigan. They applied through Burger King’s Michigan district office, but the application was forwarded to the Miami headquarters. After negotiations with both the Michigan office and Miami headquarters, they signed a 20-year franchise agreement that obligated Rudzewicz to payments exceeding $1 million. The agreement specified that it was governed by Florida law and that all notices and payments were to be sent to the Miami headquarters. When the restaurant struggled financially during a recession, Rudzewicz fell behind on payments. Despite negotiations with Burger King’s Miami headquarters, the parties could not resolve the dispute. Burger King terminated the franchise, but Rudzewicz continued to operate the restaurant. Burger King then sued Rudzewicz in federal court in Florida for breach of contract and trademark infringement.
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