Tuesday, October 13, 2009

Robert Zarco Claims Another Scalp!

I'm still reeling from the wealth on display at Bob Zarco's house from his appearance on Joan Rivers' How'd You Get So Rich?

(Oy Bob, that mural!)

We also know that Bob only stays at 5-star hotels.

But today we learn that he's also taken down the GC of Dunkin' Donuts:

The doughnut chain has reportedly filed more than 350 lawsuits against its franchisees. About 100 of them met last month at a Dunkin' Donuts Independent Franchise Owners meeting in Worcester, Massachusetts—not far from the company's headquarters in Canton.

Miami attorney Robert Zarco, of Zarco Einhoren Salkowski & Brito, warned the group that the company had turned its loss prevention department into a "profit center," according to an article in The Boston Globe. Zarco, who said he represents more than a dozen Dunkin' franchisees, told the paper that the company profits from terminating franchisees by collecting transfer fees and increased royalties from new franchisees.

Zarco says Horn's resignation was a direct result of the uproar over the tactics, and pushback by the victims. "I believe these draconian tactics have caught up with Steve Horn," Zarco told the blog Blue MauMau. "He has been a bully for years."

That's a snazzy blog there btw, BlueMauMau.

They also report -- just coincidentally -- that Bob's partner Robert Einhorn on Friday obtained a jury verdict against Miami Beach franchisor Donald Boroian and his Francorp development firm:
In summarizing the litigation, Einhorn previously stated, "Don Boroian and his company completely stepped out of the role of being a franchise consultant to become his client's partner, her joint venturer and her legal counsel. They actively participated in a scheme to defraud my clients." South Beach’s principal, Carol (Meyers) Brothers, brought the concept to Francorp to develop its franchising program. Boroian first met Brothers in 1978, when she brought her first concept, Pop-In-Maid Service, to him, a company she later took into bankruptcy.

Franchisor South Beach, a promoter and seller of health and lifestyle products, granted the exclusive rights to sell franchises in geographic areas to master franchisees. The lawsuit alleges that Boroian and Brothers induced people to buy into the system based on misrepresentations they gave about the company and its owner's checkered background.

Carol Brothers, originally named as a defendant but dropped after filing for personal bankruptcy, testified at last week’s trial for Boroian. While his own defense was basically that Brothers was the one at fault in the South Beach lawsuit, Brother’s testimony conflicted with his theory of defense. Einhorn said she admitted on the stand that she perjured herself and lied to the bankruptcy court. He said that is a serious offense. And she admitted to forging two letters, which Boroian had accused her of doing.

Again, this is a situation where the defendant reportedly offered nothing at mediation.

You can read the jury verdict form here.


Anonymous said...

All of this for like 5K in damages? What am I missing here? a million in legal fees that DD has to pay?

Gee civil law is confusing.

Anonymous said...

SFL, check the numbers. Zarco got tooled.

Anonymous said...

You don't try a case for these numbers. Who was defense counsel?

Anonymous said...

a. zarco looks like his collar button and tie are going to strangle him, that he may be in the middle of a flexible sigmoidoscopy ( if you have to ask..) or that if he doesn't get another cruller RIGHT NOW there is no way he will stop sweating profusely.

b. WTF is with that tie on the neck of the guy to zarco's left, who looks vaguely in denial about giving zarco a flexible sigmoidoscopy in front of a very large cup of dunkin doughnuts coffee.

c. who "comments" on their legal "victory" to some crappy blogger?!

NB - I know this one judge who will NOT drink Starbuck Coffee and who insists on some watered down dunkin doughnuts swill. Now THAT should give rise to a class action, as that crappy coffee has adversely effected my first cup of Joe on 7 consecutive vacations. But, she mixes a mean rum punch.

Anonymous said...

@9:35, love it except DD does brew the best coffee.

Anonymous said...

The angle of that photo looks like the photographer just finished off a roll for "Up-Skirts" magazine when called into duty by Bob.

Anonymous said...

The show is called how'd you get so rich, not how'd you get so classy.

Franchise Litigation said...

An action passed in court to implement a particular right. The procedure is bringing a lawsuit in and of itself. When a person begins a civil lawsuit, the person enters into a process.

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In my view everybody must go through it.

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