Opinion
CV116007428S
02-24-2016
Troy W. Windham v. Doctor's Associates, Inc. et al
UNPUBLISHED OPINION
MEMORANDUM OF DECISION CONFIRMING ARBITRATION AWARD
Arthur A. Hiller, J.T.R.
This decision incorporates the statement of facts recited in the Appellate Court's November 17, 2015 opinion affirming an arbitration award in favor of the Defendant. The case was remanded to the Superior Court for a hearing in damages and the determination of a specific amount of monetary damages. This matter was heard at short calendar on February 16, 2016.
Refer to Windham v. Doctor's Associates, Inc., 161 Conn.App. 348, 349-52, 127 A.3d 1082 (2015), for a more detailed fact pattern and discussion of the procedural posture behind this case.
On January 25, 2005, the plaintiff, Troy Windham, entered into a franchise agreement with the defendant, Doctor's Associates, Inc. (Subway). This agreement provided that all disputes were to be resolved through arbitration. " In May 2009, Subway sought to terminate Windham's franchise, as to his store, for cleanliness issues and a failure to follow franchise procedures . . . Subway initiated arbitration in accordance with the terms of the franchise agreement. On October 14, 2010, the arbitrator issued an interim order reflecting that Windham admitted to breaching the franchise agreement, but Subway agreed to reinstate the franchise agreement if Windham cured his store's defects and complied with the franchise agreement during a six-month review period. Further, if the order was breached, Subway was 'entitled to an expedited arbitration hearing to obtain a final award.'" Windham v. Doctor's Associates, Inc., 161 Conn.App. 348, 350, 127 A.3d 1082 (2015). The plaintiff failed to comply with the arbitrator's orders. Id.
" [O]n July 5, 2011, the arbitrator ordered the termination of Windham's Dover, [Delaware], store franchise. In the arbitrator's award, section five stated: '[Windham] shall pay to [Subway] $250 per day for each day, after the issuance of this award, for his continued use of the Subway trade names, trademarks, service marks, signs, logos, colors, structures, printed goods and forms of advertising indicative of the company's sandwich business and/or use the operations manuals for store number 24443; as required by paragraph 8(e) of the franchise agreement.' The arbitration award concluded by stating: 'This Award is the FINAL AWARD. It is effective immediately, without the necessity of further hearing and can be confirmed in any court having jurisdiction.' Windham continued to operate his store while he sought judicial review." (Footnote omitted.) Id., 350-51.
During the hearing in damages, the defendant offered the affidavit of Dianna Weymer, an employee of Franchise World Headquarters (the servicing company for the defendant), which avers that the plaintiff was liable for $311, 163.54 as of February 11, 2016. This sum includes various costs associated with the underlying arbitration and is offset by $221, 359.62 in credits. On this day, February 24, 2016, the court finds that the plaintiff is also liable in the amount of $250 for each of the thirteen days after February 11, 2016, which comes to $3, 250. This comes to a grand total of $314, 413.54 ($311, 163.54 plus $3, 250) owed to the defendant as of February 24, 2016. Damages shall continue to accrue at the rate of $250 per day for each day the plaintiff continues to operate the franchise in violation of the arbitrator's award, and such damages will be added to the aforementioned $314, 413.54 in damages.
It is so ordered this 24th day of February 2016.