IHOP Franchise Successor Dodges EEOC Suit

Law360, New York (November 11, 2010, 1:20 PM EST) -- A federal judge has let an IHOP restaurant franchisee off the hook for the previous owner's alleged race and sex discrimination, blocking an attempt by the U.S. Equal Employment Opportunity Commission to involve it in the case.

Judge Jon P. McCalla of the U.S. District Court for the Western District of Tennessee ruled Monday that Tripoli II Inc. had no successor liability for its predecessor's alleged employment law sins, since there was a sufficient break between the two.

Tripoli bought an IHOP franchise in Memphis, Tenn.,...
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