Banek, Inc. v. Yogurt Ventures U.S.A., Inc.
United States Court of Appeals for the Sixth Circuit
6 F.3d 357 (1993)
Banek, Inc. (plaintiff), a Michigan company, bought a yogurt franchise from Yogurt Ventures U.S.A. (defendant), a Georgia company, under an agreement selecting Georgia law to govern the parties' rights and obligations. After the franchise failed, Banek sued in Michigan state court alleging breach of contract, fraud, and violations of the Michigan Franchise Investment Law (MFIL); the case was removed to federal court on diversity grounds, and the district court enforced the Georgia choice-of-law clause and dismissed part of Banek's complaint, prompting Banek's appeal.
Whether a contractual choice-of-law provision selecting another state's law is enforceable under Michigan conflicts principles when a substantial relationship exists between the parties and the chosen state.