Patton v. Mid-Continent Systems, Inc.
United States Court of Appeals for the Seventh Circuit
841 F.2d 742 (1988)
Relevant factsFree
Franchisees Patton and a co-owner (plaintiffs) held exclusive-territory rights under their franchise agreement with Mid-Continent (defendant), but the company awarded competing franchises within the ambiguously defined territory and failed to remedy the situation despite years of notice; the jury found for the franchisees and awarded both compensatory and punitive damages, and Mid-Continent appealed the punitive award.
IssueFree
Whether a franchisee is entitled to punitive damages against a franchisor who breached their agreement by awarding competing franchises within the franchisee's exclusive territory and failed to remedy the breach despite years of notice.