Case Study: RE/MAX
DGS represented RE/MAX International in litigation and arbitration against one of RE/MAX’s independent regional directors over the director’s sale of RE/MAX franchises in Cuba, which was unauthorized by RE/MAX and contrary to the U.S. embargo on that country. Upon learning of these sales, which had been concealed from RE/MAX, we assisted RE/MAX in terminating its sub-franchise agreement with the regional director and obtained a preliminary injunction precluding the further sale or development of RE/MAX franchises in Cuba. In response, the regional director filed a claim for breach of contract based on the termination, and asserted damages of over $40 million. In the two week arbitration hearing, we submitted expert testimony establishing that the director’s sales of franchises in Cuba did violate the U.S. embargo statutes and several provisions of the sub-franchisor agreement, thereby justifying the termination. The arbitration panel agreed, and found in favor of RE/MAX on all claims.
