6th Circ. Backs La Quinta Franchise Authority

Law360, New York (April 30, 2010, 5:43 PM EDT) -- Affirming the La Quinta Corp.’s contractual and intellectual property rights over franchisees, a federal appeals court has flatly rejected a former hotel operator’s appeal in a dispute over costly technology upgrades La Quinta mandated and the subsequent termination of the franchise contract.

The U.S. Court of Appeals for the Sixth Circuit held Wednesday that La Quinta’s franchise agreement entitled the company to require franchisee Heartland Properties LLC to pay for a new reservation system, affirming the district court’s decision to award the hotel chain roughly $500,000...
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