Domino's Pizza LLC v. Deak

654 F. Supp. 2d 336, 2009 U.S. Dist. LEXIS 80786, 2009 WL 2867744
CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 4, 2009
DocketCivil 05-456
StatusPublished
Cited by1 cases

This text of 654 F. Supp. 2d 336 (Domino's Pizza LLC v. Deak) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Domino's Pizza LLC v. Deak, 654 F. Supp. 2d 336, 2009 U.S. Dist. LEXIS 80786, 2009 WL 2867744 (W.D. Pa. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

KIM R. GIBSON, District Judge.

I. Introduction

Presently before the Court is Plaintiff Domino’s Pizza’s Motion for Judgment on the Pleadings (Doc. No. 24) pursuant to Federal Rule of Civil Procedure 12(c), together with the briefs submitted by the parties in support and in opposition. Upon full consideration of the arguments presented, and for the following reasons, the Court hereby GRANTS Plaintiffs motion.

II. Background

A. The Parties

Domino’s Pizza LLC (“Domino’s”) is a Michigan limited liability company 1 with its principal place of business in Ann Arbor, Michigan. Domino’s is one of the largest pizza chains in the world, providing a uniform business format for numerous delivery and take-out pizza restaurants.

Mr. Deak is a resident of the Commonwealth of Pennsylvania. Mr. Deak and Domino’s engaged in a multi-decade business relationship, which included, at times, an employer-employee relationship and a franchisor-franchisee relationship.

B. Factual History

The factual history of this matter has been adequately set forth in previous Court opinions, and consequently this factual record is limited to that which is necessary for resolution of the at-issue motion.

In 1980, Mr. Deak was granted the exclusive right to develop Domino’s stores in an area, pursuant to a document labeled “Pennsylvania Area Agreement.” Doc. No. 1, Ex. A.

Among other things, the Pennsylvania Area Agreement provides:

2. Term of Agreement
Unless sooner terminated as provided in Paragraph 9, the initial term of this Agreement shall be from the date hereof until the last day of the first Agreement Year and thereafter, this Agreement shall be automatically renewed for successive terms of one Agreement Year until the last day of the tenth (10th) Agreement Year, unless Area Franchisee shall, at its sole option, elect not to *339 renew and shall give written notice to DOMINO’S of such election at least on hundred and twenty (120) days prior to the end of any Agreement Year.

Doc. No. 1, ex. A, p. 11.

The Pennsylvania Area Agreement also provides:

The preamble recitals and Exhibits hereto are part of the Agreement, which constitutes the entire agreement of the parties and there are no other oral or written understandings or agreements between DOMINO’S and AREA FRANCHISEE relating to the subject matter of this Agreement except as otherwise contemplated by this Agreement. Id.

In 1990, the parties entered into an “Addendum to Area Agreement dated May 23, 1990”; this agreement provided in relevant part:

1. Term of Area Franchise. The
Term of the Area Agreement as set forth in Paragraph 2 (“TERM OF ARE AGREEMENT”) thereof shall be extended for an additional ten (10) year period following the expiration date of the Area Agreement. For purposes of clarification, the parties agree that the expiration date of the Area Agreement as executed by this Addendum shall be July 31, 2000.”

Doc. No. 1, Ex. B.

In 2001, the parties entered into an “Addendum to Area Agreement dated February 12, 2001”; this agreement provided in relevant part:

3.) The Term of the Area Agreement shall be extended for an additional five (5) year term. For purposes of clarification, the parties agree that this additional five (5) year term commenced August 1, 2000 and expires July 31, 2005.

Doc. No. 1, Ex. C.

The parties also entered into a similar contract that provided for franchise rights in Maine.

On November 16, 1999, Domino’s Pizza reminded Mr. Deak that the Pennsylvania Area Agreement would expire in December July 31, 2000. In response to the first reminder, Mr. Deak phoned Domino’s and informed it of his position that he was entitled to renew his exclusive rights. On subsequent dates, Domino’s offered similar reminders regarding the Maine Area Agreement.

Furthermore, in 2005, Domino’s advised Mr. Deak that the area agreements would not be renewed in substantially the same form. In response, Mr. Deak’s attorney wrote to Domino’s “urging” it “not to accept applications to build stores in any location covered by his Area Agreements” and that doing so “will be deemed to be a breach of [the] guarantees [contained in the Deak-Domino’s contracts].” Doc. No. 1, p. 27.

As detailed more fully infra, Mr. Deak believes that representations were made to him regarding his ability to renew the contracts on the same terms. Ms. Pagniano’s “affidavit” states: “It is my specific recollection that there were no time limits placed on the length of the area contracts. It was understood that [Mr. Deak’s] right to be an Area Franchisee is for the duration of his development and ownership of Domino’s Pizza Stores ....” Doc. No. 5, Ex. 1, ¶ 6.

C. Procedural History

Because Domino’s felt concerned regarding the chasm between its interpretation of contract and Mr. Deak’s, and such a dispute’s potential impact upon franchise development, Domino’s filed this action on December 19, 2005, requesting a declaratory judgment that the franchise agreements with Mr. Deak expired by their expressly *340 stated terms. Doc. No. 1. Mr. Deak answered the Complaint on March 3, 2006, asserting defenses and raising a counterclaim seeking declaratory judgment that Domino’s is estopped from refusing Mr. Deak’s request to renew the relevant agreements. Doc. No. 5. On March 23, 2006, Domino’s filed a Motion to Dismiss Mr. Deak’s counterclaim (Doc. No. 6); this motion was granted by the Court on April 23, 2007. Doc. No. 17. On April 13, 2007, Mr. Deak filed an amended counterclaim; which was also dismissed by this Court in a March 20, 2008 Order. Doc. No. 28.

On November 25, 2008, Domino’s filed a Motion for Judgment on the Pleadings. Doc. No. 151. In essence, Domino’s argues that based solely upon the pleadings, it is entitled to judgment as a matter of law as to its claim for the Court’s declaration “that the Area Agreements between Domino’s and Mr. Deak have expired and the provisions contained therein no longer bind the parties.” Doc. No. 1, p. 11. This motion, along with its supporting brief, and Mr. Deak’s responses, are now before the Court for consideration.

III. Statement of Jurisdiction

The Court’s jurisdiction under this Declaratory Judgment Acts action, 28 U.S.C. § 2201, is pursuant to 28 U.S.C. § 1332. 2

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Dominos Pizza LLC v. Robert Deak
383 F. App'x 155 (Third Circuit, 2010)

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Bluebook (online)
654 F. Supp. 2d 336, 2009 U.S. Dist. LEXIS 80786, 2009 WL 2867744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dominos-pizza-llc-v-deak-pawd-2009.