Girl Scouts of Manitou Council, Inc. v. Girl Scouts of the United States of America, Inc.

Federal 7th Circuit Court
Civil Court
Franchise
Citation
Case Number: 
No. 10-1986
Decision Date: 
May 31, 2011
Federal District: 
E.D. Wisc.
Holding: 
Reversed and Remanded
Dist. Ct. erred in granting motion for summary judgment by defendant-national Girl Scout organization, in action under Wisc. Fair-Dealership law by plaintiff-local Girl Scout council seeking to enjoin defendant from dissolving plaintiff's council and awarding plaintiff's territory to other councils under circumstances where defendant argued that reassignment of plaintiff's territory was done to accomplish greater racial and ethnic diversity within each surviving council. Record lacked any connection between promotion of diversity and instant proposed realignment/reduction in number of councils. Moreover, while reduction of councils for financial reasons might satisfy good cause requirement for dissolution of franchises set forth in Wisc. statute, defendant had abandoned financial considerations as justification for proposed elimination of plaintiff's council.