Shoney's, Inc. and Shoney's of Canada, Inc. v. Chic Can Enterprises, LTD., an Alberta Corporation, Chic Can Enterprises, an Alberta LTD Ptrshp

922 S.W.2d 530, 1995 Tenn. App. LEXIS 794
CourtCourt of Appeals of Tennessee
DecidedDecember 8, 1995
Docket01A01-9506-CH-00278
StatusPublished
Cited by9 cases

This text of 922 S.W.2d 530 (Shoney's, Inc. and Shoney's of Canada, Inc. v. Chic Can Enterprises, LTD., an Alberta Corporation, Chic Can Enterprises, an Alberta LTD Ptrshp) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shoney's, Inc. and Shoney's of Canada, Inc. v. Chic Can Enterprises, LTD., an Alberta Corporation, Chic Can Enterprises, an Alberta LTD Ptrshp, 922 S.W.2d 530, 1995 Tenn. App. LEXIS 794 (Tenn. Ct. App. 1995).

Opinion

OPINION

TODD, Presiding Judge (Middle Section).

The plaintiffs, Shoney’s Inc., and Shoney’s of Canada, Inc., have appealed from the judgment of the Trial Court dismissing their suit against the defendants, Chic Can Enterprises, Ltd., Little Caesars Pizza of Alberta, Inc., and Gen Group, Incorporated for lack of personal jurisdiction of said defendants.

The plaintiff, Shoney’s, Inc. is a Tennessee corporation with principal office in Nashville. The only interest of Shoney’s, Inc., in this lawsuit is that it is a guarantor of the obligations of Shoney’s of Canada, Inc., under two of three contracts between Shoney’s of Canada, Inc. and the defendant, and the complaint requests a declaratory judgment as to such obligations.

The complaint states that Shoney’s of Canada, Inc., is a Canadian corporation with principal place of business in Toronto, Ontario, Canada.

The complaint states that all of the defendants are domiciled in the province of Alberta, Canada.

The complaint seeks a declaratory judgment regarding and damages for breach of contracts between Shoney’s of Canada, Inc., and the defendants. Said contracts are described in the complaint as:

1. “Lee’s Famous Recipe Market Development Agreement,” (The Marketing Agreement) executed on May 5, 1992, in Nashville, Tennessee with Shoney’s Inc., as guarantor of the obligations of Shoney’s • of Canada, Inc.
2. “Training Agreement” executed on May 5, 1992. (Not guaranteed by Sho-ney’s, Inc.)
3. “Lee’s Famous Recipe Restaurant License Agreement” (The License Agreement) executed on June 22, 1992, with Shoney’s, Inc. as guarantor of obligations of Shoney’s of Canada, Inc.
4. A “Letter of Clarification” executed by Shoney’s of Canada and defendants on July 2,1992.
The Marketing Agreement states in part:
This Agreement made and entered into this 5th day of May, 1992 in Nashville, *532 Tennessee, U.S.A. by and between Sho-ney’s of Canada, Ine., a Canadian corporation with its principal office at Suite 6200, Scotia Plaza, 40 King Street West, Toronto, Canada M5H 3Z7 (“Licensor”), and CHIC CAN ENTERPRISES, LTD., limited partnership, with its principal office at Suite 200, 9711^5 Avenue, Edmonton, Alberta T6E 5V8 (“Developer”).
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21. Costs and Attorney’s Fees. The law regarding franchise registration, employment, covenants not to compete and other matters of local concern shall be governed by and construed in accordance with the laws of the Province of Alberta; however, as to contractual and all other matters, this Agreement and all other provisions of this instrument will be and remain subject to the application, construction, enforcement and interpretation under the laws of the State of Tennessee. To the extent, however, that the laws of the State of Tennessee differ from the Alberta Franchise Act and the regulations promulgated thereunder, such Alberta laws and regulations shall supersede and control. The Licensor hereby accepts and submits to the jurisdiction of the courts of the Province of Alberta with regard to any disputes arising under this Agreement. Nothing herein shall affect the right of Licensor to commence legal proceedings or otherwise proceed against Developer in any other jurisdiction in which personal jurisdiction over Developer may be found....
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26. Guaranty of Shoney’s, Inc. For value received, Shoney’s Inc., located at 1727 Elm Hill Pike, Nashville, Tennessee 37210 (“Guarantor”), absolutely and unconditionally guarantees the performance by Licensor of all obligations under the Alberta Franchises Act and the regulations promulgated thereunder, and of all of the obligations of Licensor to furnish goods and services necessary to establish and open the business of the Developer, pursuant to the Licensor’s Franchise Prospectus, the registration of Licensor to sell franchises in the Province of Alberta and the terms and conditions of this Agreement, .... Guarantor hereby accepts and submits to the jurisdiction of the courts of the Province of Alberta with regard to the enforcement of this guaranty.
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SHONEY’S OF CANADA, INC.
By: /s/ F.E. McDaniel
Title: Secretary
By: /s/ Russell L. Cooper.
Title: Vice President
Date: May 4,1992
GUARANTOR:
SHONEY’S, INC.
By: Russell L. Cooper
Title: Vice President
Date: May 4,1992
The Training Agreement states in part:
This Training Agreement (the “Agreement”) is made this 5th day of May, 1992, by and between CHIC CAN ENTERPRISES, LTD., with its address at Suite 200, 9711^15 Avenue, Edmonton, Alberta T6E 5V8 (the “Licensee”), and SHONEY’S OF CANADA, INC., a Canadian corporation, with its address at Suite 6200, Scotia Plaza, 40 King Street West, Toronto, Ontario M5H 3Z7 (“Shoney’s of Canada”).
The License Agreement states in part:
This Agreement, made and entered into this 22nd day of June, 1992 by and between Shoney’s of Canada, Inc., a Canadian corporation, Suite 6200, Scotia Plaza, 40 King Street West, Toronto, Canada M5H 3Z7, hereinafter referred to as “Licensor,” and CHIC CAN ENTERPRISES, LTD., hereinafter referred to as “Licensee.”
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3. Franchised Site. The rights granted to Licensee hereunder shall be nonexclusive and shall be restricted to the operation of a single Famous Recipe restaurant to be located on the real property at # 307 101 Granada Blvd., Sherwood Park, Alberta T8A4W2....
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31. Applicable Law. The law regarding franchise registration, employment, covenants not to compete and other matters of local concern shall be governed by and construed in accordance with the laws *533 of the Province of Alberta; however, as to contractual and all other matters, this Agreement and all other provisions of this instrument will be and remain subject to the application, construction, enforcement and interpretation under the laws of the State of Tennessee. To differ from the Alberta Franchise Act and the regulations promulgated thereunder, such Alberta laws and regulations shall supersede and control. The Licensor hereby accepts and submits to the jurisdiction of the courts of the Province of Alberta with regard to any disputes arising under this Agreement....

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Cite This Page — Counsel Stack

Bluebook (online)
922 S.W.2d 530, 1995 Tenn. App. LEXIS 794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shoneys-inc-and-shoneys-of-canada-inc-v-chic-can-enterprises-ltd-tennctapp-1995.