Dayan v. McDonald's Corp.

397 N.E.2d 101, 78 Ill. App. 3d 194, 33 Ill. Dec. 768, 1979 Ill. App. LEXIS 3527
CourtAppellate Court of Illinois
DecidedOctober 29, 1979
Docket79-136
StatusPublished
Cited by6 cases

This text of 397 N.E.2d 101 (Dayan v. McDonald's Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dayan v. McDonald's Corp., 397 N.E.2d 101, 78 Ill. App. 3d 194, 33 Ill. Dec. 768, 1979 Ill. App. LEXIS 3527 (Ill. Ct. App. 1979).

Opinion

Mr. JUSTICE CAMPBELL

delivered the opinion of the court:

This is an appeal by the plaintiff, Raymond Dayan, from an order modifying a preliminary injunction entered on January 17, 1979. The action was originally filed in 1970 in the circuit court of Cook County alleging, inter alia, a breach of an agreement with defendant, McDonald’s Corporation, entitling plaintiff to buy certain franchises and to operate certain restaurants in Paris, France. A consent decree was entered in 1971 providing for a master license agreement with a stipulation that Illinois and France would have concurrent jurisdiction of all controversies arising under the agreement. The court retained jurisdiction to enforce compliance with the agreement of the parties.

In March 1978, defendant filed an action against plaintiff in France alleging a breach of the licensing agreement and prayed for a termination of the franchise. On May 12, 1978, a second action was filed against plaintiff in France claiming an infringement of defendant’s trademark with respect to a restaurant under construction.

Meanwhile, on June 6, 1978, plaintiff, an Illinois resident, filed a petition in the circuit court of Cook County in the 1970 lawsuit seeking injunctive relief to prevent the termination of operating licenses of the Paris restaurants, and for an order requiring defendant to issue an operating license for the restaurant which was the subject of the trademark infringement suit. Defendant objected on the grounds that the court did not have exclusive jurisdiction and that the same matter was pending in the French courts. On June 13, 1978, the court granted the preliminary injunction, which order was affirmed on appeal. Dayan v. McDonald's Corp. (1978), 64 Ill. App. 3d 984, 382 N.E.2d 55.

On October 24, 1978, defendant filed a motion to dismiss the Illinois action based on forum non conveniens. After a hearing the court denied the motion and entered an order on January 17, 1979, modifying the preliminary injunction previously entered and providing as follows:

“1. The motion to dismiss is denied.

2. The preliminary injunction granted on June 13,1978 is modified to provide:

a. McDonald’s Corporation may proceed to sue in France for termination of its master license agreement and operating licenses in issue in this proceeding and/or for infringement of trademarks, trade names and copyrights.

b. No steps shall be taken by McDonald’s Corporation to enforce termination of the master license agreement or existing operating licenses until final disposition of the matters before the courts of France, and the subsequent concurrence by this court in the decision.

3. This court shall be bound by findings of fact of the French court, and the application of French trademark infringement, trade name and copyright law.

4. This court reserves the right to review the conclusion of the French court solely in its application of Illinois law.

5. The proceedings in this matter in this court are stayed until final disposition before the courts of France.

6. Defendant, at its expense, shall produce the following individuals at Plaintiff’s request as witnesses for pre-trial depositions and at trial: Gerald Ford, James Schindler, Marion Dobrowolski, Paul Duncan, Kenneth Hadland, Clark Baldwin and Steven Barnes.

7. All other provisions of the Injunction entered on June 13, 1978 shall, remain in force.”

Plaintiff appeals from said order.

On appeal plaintiff contends that: (1) The order modifying the preliminary injunction was in error in binding the circuit court to findings of fact by a French court. (2) The order was in error in binding the circuit court to apply French trademark law to an Illinois contract. (3) It was error to limit plaintiff’s remedy to contest only the proper application of Illinois law by the French courts. (4) It was error to permit McDonald’s, the defendant, to bring suit in France against the plaintiff for termination of the franchise. (5) It was error to abate the suit in the circuit court of Cook County.

We reverse and remand.

Many of the facts surrounding the business dealings of the parties are set forth in a previous opinion between the same parties and will not be repeated here. (Dayan v. McDonald’s Corp. (1978), 64 Ill. App. 3d 984, 382 N.E.2d 55.) At page 987, this court stated:

“On appeal, McDonald’s first argues that the trial court erred in allowing Dayan leave to file his petition for injunction since the matter was pending in the French court.
1. We disagree. In Illinois, the rule is that the mere pendency of a lawsuit in a foreign country is not a bar to proceedings in our courts. [Citations.] Though Goldberg and Farah were divorce proceedings, the rule has broader application. (See Pesquera Del Pacifico v. Superior Court (1949), 89 Cal. App. 2d 738, 201 P.2d 553.) We are not dealing with a judgment entered by a foreign court, but simply the pendency of another suit. The trial court had jurisdiction to entertain Dayan’s petition for injunction, though concurrent jurisdiction was shared with the French court.
McDonald’s next argues that Dayan failed to allege grounds sufficient for the issuance of an injunction.
2. We believe sufficient grounds were established and that the injunction was properly ordered. In general, injunctions rest on the authority of courts of equity to restrain persons within their limits of jurisdiction from doing inequitable acts to the wrong and injury of others. The authority is further derived from the power of the State to compel its citizens to respect its laws even beyond its territorial limits. (Kahn v. Kahn (1945), 325 Ill. App. 137, 59 N.E.2d 874.) Here, the controversy concerns the rights of the parties under the master license agreement, a contract executed in Illinois, according to Illinois law. Certainly the trial court had legitimate authority to issue the injunction and further, is in a better position to resolve the dispute than the French court, which must attempt to interpret Illinois law.” 64 Ill. App. 3d 984, 987, 382 N.E.2d 55.

After the above appeal defendant filed a verified motion for forum non conveniens relief with supporting documents, setting forth the detailed facts and considerations supporting the propriety and necessity of such relief. Defendant does not concur with the statement of issues of plaintiff-appellant and described the initial issue as to whether the trial court order granting fomm non conveniens relief was an abuse of discretion under the circumstances herein.

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Bluebook (online)
397 N.E.2d 101, 78 Ill. App. 3d 194, 33 Ill. Dec. 768, 1979 Ill. App. LEXIS 3527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dayan-v-mcdonalds-corp-illappct-1979.