Mouanda v. Jani-King International
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The Supreme Court reversed the decision of the court of appeals affirming the judgment of the trial court dismissing Constance Mouanda's complaint against Jani-King International (Jani-King) and Cardinal Franchising, Inc. (Cardinal) alleging fraud, breach of contract, and unconscionability, holding that the trial court erred in granting Cardinal's and Jani-King's motion to dismiss.
Mouanda formed The Matsoumou's LLC, for which Cardinal provided the necessary legal documents. The LLC entered into a franchise agreement with Cardinal and began operating as a unit franchisee. Mouanda later brought suit alleging fraud, breach of contract, and unconscionability and seeking damages for Cardinal and Jani-King's failure to comply with Kentucky's wage and hour laws. Cardinal and Jani-King moved to dismiss based on Mouanda's failure to bring the lawsuit on behalf of the LLC. The court of appeals affirmed. The Supreme Court reversed, holding that the franchise agreement contained nothing that would preclude a wage and hour claim by Mouanda individually and that the fraud claim was not dependent on the LLC being a party to the action. The Court remanded the case to allow the parties to develop the record so the trial court can determine whether Mouanda has a valid wage and hour claim and/or fraud claim.
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