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Davis and Insler Obtain Favorable Results for Client

On March 25, 2015, a panel of the United States Court of Appeals for the Eighth Circuit unanimously affirmed the dismissal of nationwide RICO class action claims by enforcing individual arbitration of franchisee claims against Stratus Franchising LLC. The case is noteworthy because it affirms the primacy of the Federal Arbitration Act, clarifies the burden of plaintiffs claiming unconscionability to try to avoid arbitration, enforces arbitration as to non-signatories to the arbitration agreement, and supports the enforcement of class action waivers as a matter of contract principles. Glenn Davis, partner in HeplerBroom’s St. Louis office, argued the case and Charles Insler, associate in HeplerBroom’s St. Louis office, was on the briefs. This is an important precedent for franchise companies in the Eighth Circuit and beyond.


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