Cohen Mohr won a major victory on behalf of a franchisee in the U.S. District Court for the District of Maryland, Baltimore Division, in an action against a healthcare franchisor and franchise broker under the Maryland Franchise Registration and Disclosure Law, Md. Code, Bus. Reg. § 14-201 et seq. In a 58-page opinion, the Court denied the defendants’ motion to dismiss, allowing the case to go forward. The decision was significant in that it marked the first time a court in Maryland ruled that franchisors cannot employ an integration clause or contractually disclaim representations made outside the franchise disclosure document (FDD) to defeat claims of fraudulent misrepresentation under the FRDL, holding such disclaimers legally void. Russ Gaspar and Andrew Wible represent the plaintiffs.
Raymond V. Hanley, et al. v. Doctors Express Franchising, LLC, et al., No. 1:12-cv-00795-ELH (D. Md. Feb. 25, 2013).
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