Settlement efforts may avert trial in Shakey's Pizza lawsuit

May 5, 2004

LOS ANGELES—Hoping to avert a scheduled May 12 trial, franchisee plaintiffs in a class-action lawsuit against their franchisor, Shakey's, Inc., parent of the 61-unit pizza chain, have been granted a 60-day stay during which both parties will attempt to work out a settlement.

Glenn Plattner, an attorney representing Shakey's, said Judge Ralph Dau granted the stay based on both parties' belief in a "high likelihood that the case could be settled and that time was needed to work that out."

Plattner added that avoiding a trial altogether would benefit both sides.

"Right now, there's no trial on May 12, so if the parties are able to work out a resolution, that would seem to be positive for everyone," he said.

Shakey's franchisee and class spokesman Chuck Wilburn confirmed negotiations were underway, but said only that he and the other franchisees were "open to anything that will resolve the issues."

In December 2002, 19 franchisees filed a multi-million-dollar lawsuit against Shakey's, accusing the company of fraud, negligent misrepresentation and breach of contract.

In April, at the request of Shakey's counsel, Judge Ralph Dau removed the fraud and negligent misrepresentation components of the complaint, but left the breach of contract components, which could cost Shakey's millions in potential damages.

Read related Shakey's stories by clicking here.

Topics: Shakey's

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