Powell v. Coffee Beanery, Ltd.

932 F. Supp. 985, 1996 U.S. Dist. LEXIS 11025, 1996 WL 434402
CourtDistrict Court, E.D. Michigan
DecidedJuly 31, 1996
DocketCivil Action No. 96-40202
StatusPublished

This text of 932 F. Supp. 985 (Powell v. Coffee Beanery, Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. Coffee Beanery, Ltd., 932 F. Supp. 985, 1996 U.S. Dist. LEXIS 11025, 1996 WL 434402 (E.D. Mich. 1996).

Opinion

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

GADOLA, District Judge.

Plaintiff initially brought this action in California state court, alleging violations of state law. Defendant removed the action to federal court in California and then had it transferred to the Eastern District of Michigan. The action was then reassigned to this court because this court was already handling a separate suit brought by defendant against plaintiff arising from the same general dispute between the parties.1 The Coffee Beanery (hereinafter “TCB”) moves for summary judgment with respect to William Powell’s (hereinafter “Powell”) second cause of action, alleging violation of California Franchise Investment Law § 31119. For the following reasons, this court will grant TCB’s motion [986]*986and dismiss .the claim under the California Franchise Investment Law.

I. Factual Background

On February 16, 1993, Powell and TCB entered into a franchise agreement. This franchise agreement gave Powell the right to operate a Coffee Beanery store in the Burbank Mall in Burbank, California. On February 1,1994, William Powell entered into an additional franchise agreement with the plaintiff to open another store. Initially, Powell was going to open up a coffee cart at the Burbank Airport. In June, 1994, however, TCB and Powell agreed that Powell would open a store in Santa Monica. This store was eventually opened in Santa Monica, California in August, 1995.

On January 4,1996, Powell closed his franchise in Santa Monica, purportedly because of financial difficulties. The next day TCB terminated both of its franchise agreements with the defendant. On February 20, 1996, Powell brought an action against TCB in California state court asserting claims of negligent misrepresentation and violation of § 31119 of California’s Franchise Investment Law. With regard to the § 31119 claim, Powell specifically alleges that TCB did not provide him with a copy of its offering circular before accepting payment for the franchise.

TCB now moves to have the § 31119 claim dismissed under the applicable statute of limitations.

II, Standard of Review

Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment may be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” “A fact is ‘material’ and precludes grant of summary judgment if proof of that fact would have [the] effect of establishing or refuting one of the essential elements of the cause of action or defense asserted by the parties, and would necessarily affect [the] application of appropriate principle^] of law to the rights and obligations of the parties.” Kendall v. Hoover Co., 751 F.2d 171, 174 (6th Cir.1984) (citation omitted). . The court must view the evidence in a light most favorable to the nonmovant as well as draw all reasonable inferences in the nonmovant’s favor. See United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962); Bender v. Southland Corp., 749 F.2d 1205, 1210-11 (6th Cir.1984).

The movant bears the burden of demonstrating the absence of all genuine issues of material fact. See Gregg v. Allen-Bradley Co., 801 F.2d 859, 861 (6th Cir.1986). This burden “may be discharged by ‘showing’— that is, pointing out to the district court— that there is an absence of evidence to support the nonmoving party’s case.” Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). Once the moving party discharges that burden, the burden shifts to the nonmoving party to set forth specific facts showing a genuine triable issue. Fed.R.Civ.P. 56(e); Gregg, 801 F.2d at 861.

To create a genuine issue of material fact, however, the nonmovant must do more than present some evidence on a disputed issue. As the United States Supreme Court stated in Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986),

There is no issue for trial unless there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party. If the [nonmovant’s] evidence is merely colorable, or is not significantly probative, summary judgment may be granted.

(Citations omitted). See Catrett, 477 U.S. at 322-23, 106 S.Ct. at 2551-52; Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1355-56, 89 L.Ed.2d 538 (1986). The evidence itself need not be the sort admissible at trial. Ashbrook v. Block, 917 F.2d 918, 921 (6th. Cir.1990). However, the evidence must be more than the nonmovant’s own pleadings and affidavits. Id.

III. Analysis

The applicable statute of limitation for a § 31119 claim provides:

[987]*987No action shall be maintained to enforce any liability created under Section 31300 unless brought before the expiration of four years after the act or transaction constituting the violation, the expiration of one year after the discovery by the plaintiff of the fact constituting the violation, or 90 days after delivery to the franchisee of a written notice disclosing any violation of Section 31110 or 31200, which notice shall be approved as to form by the commissioner, whichever shall first expire.

Cal.Corp.Code § 31303. Section 31300 provides, in part:

Any person who offers or sells, a franchise in violation of Section 31101, 31110, 31119, 31200, or 31202, shall be liable to the franchisee or subfranchisor, who may sue for damages caused thereby, and if such violation is willful, the franchisee may also sue for rescission____

Cal.Corp.Code § 31300. Therefore, § 31303 provides the limitations period for violations of §§ 31101, 31110, 31119, 31200, and 31202. In the present case, Powell alleges violation of § 31119.

Although there are disputed facts concerning the details of the negotiations for the second franchise agreement, these facts are not important to the issue before this court.

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Related

United States v. Diebold, Inc.
369 U.S. 654 (Supreme Court, 1962)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Ovall Dale Kendall v. The Hoover Company
751 F.2d 171 (Sixth Circuit, 1984)
James L. Kemper v. Merle Norman Cosmetics, Inc.
15 F.3d 1086 (Ninth Circuit, 1994)
Jolly v. Eli Lilly & Co.
751 P.2d 923 (California Supreme Court, 1988)
Dollar Systems, Inc. v. Avcar Leasing System, Inc.
673 F. Supp. 1493 (C.D. California, 1987)
Ashbrook v. Block
917 F.2d 918 (Sixth Circuit, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
932 F. Supp. 985, 1996 U.S. Dist. LEXIS 11025, 1996 WL 434402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-coffee-beanery-ltd-mied-1996.