Stuller, Inc. v. Steak N Shake Enterprises, Inc.

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 11-2656
Decision Date: 
August 24, 2012
Federal District: 
C.D. Ill.
In action seeking declaration that plaintiff-franchisee was not required to comply with new pricing policy generated by defendant-franchisor, Dist. Ct. did not err in granting plaintiff's request of issuance of preliminary injunction to prevent defendant from enforcing said policy and/or terminating franchise agreement during pendency of lawsuit. Record showed that plaintiff had likelihood of success based on language in franchise agreement, and plaintiff demonstrated that it had no adequate legal remedy where implementation of policy that required 50% pricing reduction or else face termination of franchise agreement held potential for plaintiff's loss of good will and reputation if plaintiff prevailed on merits and attempted to raise prices back to existing level.