People Ex Rel. Department of Corps. v. Speedee Oil Change Systems, Inc.

I. Introduction

On July 29, 1994, the Department of Corporations (the department), on behalf of the People of the State of California, filed an action against a franchisor and others for violations of the Franchise Investment Law, Corporations Code section 31000 et seq. (the department’s action). Defendants included: the franchisor, SpeeDee Oil Change Systems, Inc. (SpeeDee Oil); NoCal, Inc. (apparently an assignee of SpeeDee Oil); CalNeva Oil Corporation (CalNeva), a subfranchisor; and individual officers and directors of the corporate defendants. Numerous franchisees intervened in the department’s action. The plaintiffs in intervention are Donald and Belva Almen, Jon Andersen, Jerry and Kathleen Beezley, Mike and Karolyn Bradley, M.G. Han, Jeff Howe, Samuel Lau, and Christopher Mack. Ultimately, however, the department’s action and the franchisees’ complaints in intervention were tried separately.

The present appeals arise out of the franchisees’ action against SpeeDee Oil, CalNeva, and others. This opinion addresses appeals in case Nos. B144629 and B140743 that were consolidated for purposes of oral argument and decision. In case No. B144629, the franchisees appeal…