Nebraska ex rel. Counsel for Discipline of the Nebraska Supreme Court v. Orr

Attorney Orr (defendant), a general practitioner with no franchise-law experience, drafted a franchise agreement and FTC disclosure statement for a coffee-shop client without acquiring real expertise in franchising. Over several years, and even after being alerted to franchisee lawsuits and FTC problems, Orr kept revising the disclosure statement and assuring his clients it was compliant. It was not: a franchise-law specialist later found major deficiencies, and the client's franchise business collapsed under FTC investigation. Disciplinary charges followed, and a referee found Orr had violated the competence rule, recommending a public reprimand.