G.C. And K.B. Investments, Inc., a Louisiana Corporation v. Stuart Wilson Irene Wilson

Good Law

2003 Daily Journal DAR 4313·326 F.3d 1096·55 Fed. R. Serv. 3d 425·2003 Cal. Daily Op. Serv. 3371·2003 U.S. App. LEXIS 7626

United States Court of Appeals for the Ninth CircuitApril 23, 200300-56627, 01-55733, 01-55988 and 01-55991California6,147 words

Opinion

O'Scannlain, J.

In this case, we deal with the interplay between federal and state courts in a bitter and protracted dispute involving the enforcement of an arbitration award.

I

In January 1992, Stuart and Irene Wilson entered into a written agreement in California with Arrowhead Oil Corporation (“AOC”) for the sale of certain franchise rights for the ownership and operation of a car care service business to be opened in Hawaii. AOC was a Lake Arrowhead, California-based regional sub-franchisor of SpeeDee Oil Change Systems (“SpeeDee”), a Louisiana Corporation, and in due course, the Wilsons opened their SpeeDee franchise, SpeeDee Oil of Maui, Inc, in Kahului, Hawaii. In 1993, AOC filed for bankruptcy, and SpeeDee took over the regional sub-franchise.

In 1994, the California Department of Corporations, after receiving complaints of unfair and deceptive sales practices (not necessarily related to this litigation), filed suit against SpeeDee and AOC. The state alleged that SpeeDee and AOC failed to disclose material facts in their Uniform Franchise Offering Circular, and made material misrepresentations with regard to franchise offerings, in violation of California securities law. In 1997, a…

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