15 U.S.C. § 2805 : US Code - Section 2805: Enforcement provisions

Search 15 U.S.C. § 2805 : US Code - Section 2805: Enforcement provisions

(a) Maintenance of civil action by franchisee against franchisor;
jurisdiction and venue; time for commencement of action
If a franchisor fails to comply with the requirements of section
2802 or 2803 of this title, the franchisee may maintain a civil
action against such franchisor. Such action may be brought, without
regard to the amount in controversy, in the district court of the
United States in any judicial district in which the principal place
of business of such franchisor is located or in which such
franchisee is doing business, except that no such action may be
maintained unless commenced within 1 year after the later of -
(1) the date of termination of the franchise or nonrenewal of
the franchise relationship; or
(2) the date the franchisor fails to comply with the
requirements of section 2802 or 2803 of this title.
(b) Equitable relief by court; bond requirements; grounds for
nonexercise of court's equitable powers
(1) In any action under subsection (a) of this section, the court
shall grant such equitable relief as the court determines is
necessary to remedy the effects of any failure to comply with the
requirements of section 2802 or 2803 of this title, including
declaratory judgment, mandatory or prohibitive injunctive relief,
and interim equitable relief.
(2) Except as provided in paragraph (3), in any action under
subsection (a) of this section, the court shall grant a preliminary
injunction if -
(A) the franchisee shows -
(i) the franchise of which he is a party has been terminated
or the franchise relationship of which he is a party has not
been renewed, and
(ii) there exist sufficiently serious questions going to the
merits to make such questions a fair ground for litigation; and
(B) the court determines that, on balance, the hardships
imposed upon the franchisor by the issuance of such preliminary
injunctive relief will be less than the hardship which would be
imposed upon such franchisee if such preliminary injunctive
relief were not granted.
(3) Nothing in this subsection prevents any court from requiring
the franchisee in any action under subsection (a) of this section
to post a bond, in an amount established by the court, prior to the
issuance or continuation of any equitable relief.
(4) In any action under subsection (a) of this section, the court
need not exercise its equity powers to compel continuation or
renewal of the franchise relationship if such action was commenced -

(A) more than 90 days after the date on which notification
pursuant to section 2804(a) of this title was posted or
personally delivered to the franchisee;
(B) more than 180 days after the date on which notification
pursuant to section 2804(b)(2) of this title was posted or
personally delivered to the franchisee; or
(C) more than 30 days after the date on which the termination
of such franchise or the nonrenewal of such franchise
relationship takes effect if less than 90 days notification was
provided pursuant to section 2804(b)(1) of this title.
(c) Burden of proof; burden of going forward with evidence
In any action under subsection (a) of this section, the
franchisee shall have the burden of proving the termination of the
franchise or the nonrenewal of the franchise relationship. The
franchisor shall bear the burden of going forward with evidence to
establish as an affirmative defense that such termination or
nonrenewal was permitted under section 2802(b) or 2803 of this
title, and, if applicable, that such franchisor complied with the
requirements of section 2802(d) of this title.
(d) Actual and exemplary damages and attorney and expert witness
fees to franchisee; determination by court of right to exemplary
damages and amount; attorney and expert witness fees to
franchisor for frivolous actions
(1) If the franchisee prevails in any action under subsection (a)
of this section, such franchisee shall be entitled -
(A) consistent with the Federal Rules of Civil Procedure, to
actual damages;
(B) in the case of any such action which is based upon conduct
of the franchisor which was in willful disregard of the
requirements of section 2802 or 2803 of this title, or the rights
of the franchisee thereunder, to exemplary damages, where
appropriate; and
(C) to reasonable attorney and expert witness fees to be paid
by the franchisor, unless the court determines that only nominal
damages are to be awarded to such franchisee, in which case the
court, in its discretion, need not direct that such fees be paid
by the franchisor.
(2) The question of whether to award exemplary damages and the
amount of any such award shall be determined by the court and not
by a jury.
(3) In any action under subsection (a) of this section, the court
may, in its discretion, direct that reasonable attorney and expert
witness fees be paid by the franchisee if the court finds that such
action is frivolous.
(e) Discretionary power of court to compel continuation or renewal
of franchise relationship; grounds for noncompulsion; right of
franchisee to actual damages and attorney and expert witness fees
unaffected
(1) In any action under subsection (a) of this section with
respect to a failure of a franchisor to renew a franchise
relationship in compliance with the requirements of section 2802 of
this title, the court may not compel a continuation or renewal of
the franchise relationship if the franchisor demonstrates to the
satisfaction of the court that -
(A) the basis for such nonrenewal is a determination made by
the franchisor in good faith and in the normal course of business
-
(i) to convert the leased marketing premises to a use other
than the sale or distribution of motor fuel,
(ii) to materially alter, add to, or replace such premises,
(iii) to sell such premises,
(iv) to withdraw from the marketing of motor fuel through
retail outlets in the relevant geographic market area in which
the marketing premises are located, or
(v) that renewal of the franchise relationship is likely to
be uneconomical to the franchisor despite any reasonable
changes or reasonable additions to the provisions of the
franchise which may be acceptable to the franchisee; and
(B) the requirements of section 2804 of this title have been
complied with.
(2) The provisions of paragraph (1) shall not affect any right of
any franchisee to recover actual damages and reasonable attorney
and expert witness fees under subsection (d) of this section if
such nonrenewal is prohibited by section 2802 of this title.
(f) Release or waiver of rights
(1) No franchisor shall require, as a condition of entering into
or renewing the franchise relationship, a franchisee to release or
waive -
(A) any right that the franchisee has under this subchapter or
other Federal law; or
(B) any right that the franchisee may have under any valid and
applicable State law.
(2) No provision of any franchise shall be valid or enforceable
if the provision specifies that the interpretation or enforcement
of the franchise shall be governed by the law of any State other
than the State in which the franchisee has the principal place of
business of the franchisee.